Finance USA

Jul 24 2019

5 Easy Steps To Getting Your Car Dealer License, auto dealer license.#Auto #dealer #license


Auto dealer license

If you want to sell motor vehicles, or you want to be involved in the business of selling, buying, or displaying for sale motor vehicles, then you will have to get your car dealer license (also known as auto dealer license or motor vehicle dealer license.)

Not sure if you need a dealer license? Check out this post on Auto dealer license

Part of getting your license involves purchasing a car dealer bond (also known as a motor vehicle dealer bond or an auto dealer bond. ) The following five steps explain how to get your license and your bond so you start a car dealership. Make sure you check your state guidelines for specific rules and regulations.

How to get a Car Dealer License

Step #1: Contact Your Local DMV or DOL

Every state has individual requirements for becoming a car dealer. Your local DMV (Department of Motor Vehicles) or DOL (Department of Licensing) will know what those requirements are, so contacting them is the first step.

Your state will familiarize you with what is needed to get your dealer license. They will also give you any necessary paperwork to fill out and provide you with further guidance.

Recognize that there are different types of dealer licenses to apply for:

Step #2: Meet Requirements

Depending on the state you live in, this could amount to a long list. Before getting your car dealer license, most states will require you to fulfill some general guidelines like securing a properly zoned location and getting your location and business approved.

Auto dealer license

Other common requirements include:

Worried about a felony or conviction on your record? Check out this post on Getting a Dealer License With a Felony.

Step #3: Complete Car Dealer License Application

Your local DMV will provide you with the proper car dealer license application for your business. The U.S. Small Business Administration (SBA) can be a valuable asset in this part of the process too.

Step #4: Purchase Motor Vehicle Dealer Bond

Not sure how to get an Auto Dealer Bond? Use this interactive tool to help you out.

Almost every state will require you to purchase a car dealer bond. A car dealer bond is a type of surety bond that protects your customers. If your customers feel you are running an unethical business, they can make a claim against your bond.

The dollar amount of the bond will vary state to state, and the cost of the bond will vary on your individual and business financial credentials.

The best way to find out what you’ll pay for your bond is to get a free quote.

Auto dealer license

Do not overlook this step. Obtaining a car dealer bond is vital to ensuring your customers that you will stand in good faith behind your actions. The bond guarantees your customers they will be protected should something go awry in a business transaction.

The Surety Solutions blog has individual blog posts on how to obtain a car dealer bond for almost every state. Check out our tutorials to get started.

Step #5: Submit Car Dealer Application

Send your car dealer license application, car dealer bond, proof of insurance, and all other necessary papers to your local DMV or Auto Dealer Licensing Service Department…and wait to be approved!

Auto dealer license

Written by CIA

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