The rules and regulations for obtaining a car dealership license are different from state to state. Namely, every state in the country mandates specific requirements. However confusing it may sound, you can follow those easy-to-follow rules at DMV.org. When you start searching, you will see that the lists of obligations are written without confusing legal jargon.
In short, these pages offer three separate dealership categories: licensing requirements, dealer forms and dealer-related information. You’ll also find 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.
1. Contact your local DMV
Each state in US has its own requirements for becoming a car dealer and getting the dealership license. Therefore, you will need to become familiar with the regulations in your state if you want to start your car selling business the right way. After you contact your local DMV, you will receive information and paperwork to fill out.
2. There are three things most states require:
– Pass the DMV test to get a car dealer license
– Set up a properly zoned (retail and/or commercially zoned) location
– Get the location approved by the DMV inspector.
Many county and city governments require at least a half-acre of paved surface, an office, and the most crucial ingredient of all, proper zoning. Most local governments will try to keep car dealers within a narrow strip of roadside and limit the available real estate to as small of a supply as possible.
3. Fulfill additional requirements
You will need several other things to make your car dealing business successful and legal:
– A business license (Visit the US Small Business Administration, you will find there a great deal of useful information and not just rules and regulations)
– A business plan (Ideally, it will help you to plan for the future and work more effectively with people, starting today!)
– Apply for a surety bond
Why do I need a surety bond?
Auto merchant bonds give monetary certifications that help control the business. Likewise, auto merchant bonds ensure clients, venders, money related endeavors or legislative organizations. Assuming that a merchant confers misrepresentation or behaviors business in other exploitative ways, the bond helps these elements recuperate from any ensuing fiscal misfortune.
Some common car dealer bonds include:
– DMV bonds
– RV bonds
– Motorcycle dealer bonds
– Used car dealer bonds
– Whole sale car dealer bonds
4. Pass a background check (Most states and most bonding companies will want to know you have a solid financial history and no crimes in your past)
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/.