If you want to sell cars retail or wholesale in New York, you must be registered as a dealership with the Division of Vehicle Safety Services at the New York Department of Motor Vehicles. The process of obtaining a dealer license in New York is pretty much involved, as the industry is highly regulated, but if you take it step by step you’ll find it much easier.
Firstly, you are permitted to sell a car in the newspaper as a private-party transaction without a dealer license. However, you must register as a car dealer if:
– You bought the vehicles in order to resell them and one of the following:
– You display three or more vehicles for sale at one time on premises that you own or control
– You display three or more vehicles for sale within one month at such a location
– You sell five or more vehicles in a calendar year
The above applies to dealers of motor vehicles, motorcycles, and trailers, not mobile home trailers.
When you establish if you are required to register as a dealer in NY, the first thing to do is to read the Motor Vehicle Dealers and Transporters Regulations publication from the DMV. There you will find lists of requirements, regulations, and responsibilities. So, to obtain a dealer license in New York, you will need to get the following:
– A Official Business Certificate of Registration from your county clerk
– A federal employee ID number and proof of worker’s compensation and disability insurance coverage, if you’ll have employees
– A sales tax number and a copy of the Certificate of Authority issued by the New York State Department of Taxation and Finance
– Proof of insurance that will cover vehicles owned or operated by the dealer and sporting dealer plates
– A surety bond in an amount ranging from $10,000 to $50,000, depending on the type of dealership
– Franchise agreements with manufacturers of new vehicles you intend to sell (not required for selling used vehicles)
– A Statement of Ownership or permission to use the place of business
– A copy of the driver license or non-driver photo ID from the company’s owner, president, or partner
All items in the above list need to be included along with the appropriate application and business fees.
How long does it take to get a dealer license in New York?
Typically, it takes around six to eight weeks to process an application. Also, you should expect a visit from a representative of the DMV to interview you and check out your place of business during this time. If your application is refused, the DMV will refund the business fees you paid once you return the refund voucher.
Information on Dealers License, LLC
Dealers License, LLC is based in Greenville, South Carolina and helps clients across the country acquire their dealer license. They can assist you whether you are looking for a wholesale or retail dealer license, either of which allow you to access the dealer-only auctions mentioned above as well as buy and sell within the company’s retail network. They will also help you 24/7 with marketing assistance, mentoring and coaching. If you would like to learn more, check out: https://www.dlcnetwork.com/.