How to Become a Commercial Auto Dealer
- 1). Visit the local office of your state's motor vehicle authority. Inquire about dealer licensing. If the office does not administer licensing itself, a customer service representative will be able to point you in the right direction.
- 2). Obtain an auto dealer license application packet, including any supplemental materials or instruction sheets. Read through these documents to familiarize yourself with the licensing requirements and procedures.
- 3). Find a location for your business. Before putting your name to a lease or a purchase agreement, verify that the location is appropriate for selling cars commercially. First, review your application for specific physical requirements. In many states, your office and your display lot must exceed certain minimum dimensions. Second, obtain confirmation from the local zoning regulations office that the location is properly zoned for commercial car sales. Depending on your state, you may require documentary proof of appropriate zoning.
- 4). Register your business with the appropriate federal, state and local authorities. Often, dealer applications include a checklist for you to complete. If this is not the case, visit the U.S. government-operated website "Business.gov" and access the state-by-state index of business registration procedures. Depending on your state, you may have to file articles of formation, obtain federal and state tax identification numbers, and enroll in unemployment and workers' compensation programs, among other legal requirements.
- 5). Obtain a surety bond in the appropriate amount, if the licensing authority requires it.
- 6). Obtain general liability insurance in the appropriate amount, if the licensing authority requires it.
- 7). Prepare your location to the licensing specifications. Many states have very detailed signage and office furniture requirements. You will likely need to install a landline telephone listed under your business name. You may need to obtain a fax machine. Refer to your application materials for a comprehensive list of such requirements. You may be required to submit photographs of your location showing that the requirements have been satisfied.
- 8). Take and pass a licensing exam, if the licensing authority requires it.
- 9). Complete your application and submit it, along with supporting documents and fees, to the indicated address. If you are required to be present for an on-site inspection of your business, the licensing authority will contact you. After your application has been approved, a license will be issued to you.
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