Car Dealer License

With the tough economy, people are starting to take action to find a better way of life by securing a good income.  Even with this industry changing, owning and operating a good dealership creates doors of opportunity for making a lucrative income, employing people who need work, and guiding buyers to making sound decisions.  However, to get involved with the automobile industry in opening a dealership, the first step would be to get a car dealer license.

Dealerships are required by the state and federal government to follow a number of laws and regulations for automobile permit.  With a car dealer license, all of the mandates for this type of operation would be understood.  The great thing is that the process to start such a business is not that difficult, although each step takes a little time.  With hard work and dedication, an auto dealership is certainly an excellent way of getting back on track, as well as getting ahead financially.

• Anyone interested in the auto business would need to get in touch with the local Department of Motor Vehicle (DMV).  This government entity can provide a wealth of information specific to testing requirements.  The DMV also has various documents that would need to be read carefully, completed, and submitted along with other documentation.  While the initial process is basic, every state has slightly different requirements specific to licensing.

• The second step involved would require the dealership to be registered with the local Business Registry.  The DMV would provide a registry number during the licensing application process, which would be required as a part of registration.  While the fees are associated with the process to get a car dealer license, these fees are not significant but again, they vary from state to state.

• Additionally, the Business Registry would need detailed information pertaining to the location where the dealership would be, along with a zoning permit, which can be obtained from the local zoning office.

• To get a car dealer license, the company, owner, and employees would need to be bonded.  In this case, a reputable bond company would assist.  Although states have different requirements, most ask that a minimum of $40,000 be secured in the form of surety bonds.  This particular type of bond has to be active for a minimum of three years and the seal on the bond has to be original.

• To get a car dealer license, an insurance agent or company could provide a Liability Insurance Certification, which has to be in place for the business to operate.

• Another step is working with an approved dealer-education provider, who would furnish the needed certification. The person interested in opening a dealership can always contact a representative of the DMV for a list of providers in the local area.