What Are the Requirements for Obtaining a Dealer License?


Quick Answer

Getting a car dealer license in the state of California requires paying hundreds of dollars in fees, performing a dealer training program and filling out an application that must be approved. Some costs vary from county to county, and fees may increase if a dealer goes into motorcycle dealing too.

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Full Answer

Car dealer license requirement vary from state to state. While California may require a lengthy training process to sell or buy any cars at all in this official capacity, the state of New York only requires a dealer license registration if an individual is selling too many cars over a period of a year, or all at once. Once this condition has been determined, an individual must get an official Business Certificate of Registration, a federal employee ID number if they have employees, a sales tax and a Certificate of Authority, proof of insurance for the vehicles, a surety bond of up to $50,000, appropriate franchise agreements, a Statement of Ownership and a photocopy of the business owner's driver's license.

Generally, a lengthy paperwork process is involved in any state in order to be approved for running a car dealership. With the New York example, a dealership owner also needs secure space to display the vehicles as well as proper paperwork and a permanent sign built indicating that it is a dealership before a license may be issued properly.

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