A motor vehicle dealer license permits you to become certified within your state to sell and buy automobiles. Anybody in the business of selling and buying vehicles must be licensed. Depending upon the state where your business runs, there are various requirements which must be met before it’s possible to become a licensed car dealer.

Auto Dealer License Requirements

Most states require that licensed dealerships be bonded because it’ll protect the dealer’s customers from all fraudulent behavior, as well as verifies that the dealership is sound financially. Depending upon the state and the kind of cars being sold and bought, the required surety bond might be between $5,000 and $100,000. So, applicants always are encouraged to verify the amount of the bond with their licensing authority.

Besides acquiring a car dealer bond, applicants have to verify ownership of the lot which the business runs on and offer evidence of liability insurance. In order to verify lot ownership, most states require a copy of the lease agreement or deed for the lot. Applicants also may have to provide photographs of their signage and place of business, depending upon the state. A few states require an applicant to complete a car dealer education class through the state agency offering the license.

How much will a motor vehicle dealer license cost?

Typically, there are 3 fees which may be expected while acquiring a motor vehicle dealer license, however, extra fees might be added for fingerprinting and a car dealer education class.

• States require an initial application charge. Typically, this ranges between $175 and $700.
• Also, states charge a $50 – $100 fee for each license plate a dealership requires for its cars.
• A renewal charge must be paid at the end of every term to keep the license active. It might occur one time a year or one tome every 2 years, contingent on the license terms.

Have to obtain a surety bond for your motor vehicle dealer license?

The team of pros at Steely and Smith have years of expertise in issuing motor vehicle dealer bonds around the nation, which means they know what it’ll take to get you bonded while saving you money and time. Visit our car dealer bond page or call us at 267-992-7232 to get your no-obligation, free quote right away!