Dealer license requirements

Every state in the country mandates specific requirements for obtaining a car dealership license. It can be a daunting process because of the great deal of paperwork and building requirements. On the other side, there are sources that offer easy-to-follow dealership licensing information for each specific state. For example, you will find that Pennsylvania requires a minimum of five different applications, whereas North Dakota only requires one.

In short, these sources offer three separate dealership categories: licensing requirements, dealer forms and dealer-related information. You’ll also find that each state’s dealership building requirements including the size of street signs, size of display lots, number of phone lines, and the posting of operating hours. And, you’ll also uncover tips and advice on state Lemon Laws and the dangers of deceptive advertising.

So, what are the dealer license requirements?

Firstly, you need to contact your local DMV because, as we have already said, each state has certain requirements for becoming a car dealer and you will need to become familiar with the requirements in your state if you want to get your dealer license. Once you get in touch with your local DMV, you will receive information and paperwork to fill out.

Most states also require that you pass the DMV test to get a car dealer license, to set up a properly zoned location and to get the location approved by the DMV inspector. Many county and city governments require at least a half-acre of paved surface, an office, but the most important is- proper zoning.  If you want a prime location, expect a cost of several thousand dollars at minimum. The smarter alternative for most dealers new to this business is to find either a more rural location at a lower cost, or get a small office that has limited space for vehicles. That means lower drive-by traffic, smaller inventory and perhaps more money in advertising.  You decide what’s more important to you.

After that, there are some additional requirements to be fulfilled. Before you can buy and sell cars, you will need a few other things to make your business both legal and successful. You will need a business license (visit the US Small Business Administration, they have a wealth of information and not just the rules and regulations but they can inform you in everything, from how to name your business to how to get funding), a business plan (you will work more effectively), you’ll need to apply for a surety bond (you can usually get a quote from bond companies for free or for a small fee, but you’ll need to have a good credit history and your financial paperwork in order to be successful) and you’ll need to pass the background check (most states and most bonding companies will want to know if you have had a criminal history and they will want to know about your financial history).

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:


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