How Do You Obtain a Used Car Dealership License?


Quick Answer

Licensing requirements differ by state, but proof of a place of business and photographs of the business location are common requirements. Some states require applicants to attend training programs, explains DMV.org.

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Full Answer

In California, applicants must first submit to background checks, so the DMV may check for both crimes and examples of moral turpitude. Applicants must then attend a dealer education training program and pass a test. In the application packet, an applicant must include the original certificate of completion from his dealer education training program, city or county business license, resale permit from the California Board of Equalization, fictitious business name statement, copy of the lease or rental agreement for the facility and photographs of the facility that show the main entrance, the sign, the vehicle display area and a shot of the entire location, notes DMV.org. Dealer licensing fees include a non-refundable initial application fee, Family Support Program fee, fee for each branch location and New Motor Vehicle Board fee.

Applicants in Texas must apply for a general distinguishing number, which requires a permanent location for the dealership, proper signage and enough space to display the required number of vehicles that the applicant intends to sell. A licensing specialist reviews the application, and the specialist informs the applicant if any deficiencies exist in the paperwork. The licensing agency mails approved licenses are mailed to the mailing address on the general distinguishing number application.

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