How To Get A Car Dealers License: Requirements for getting a Car Dealer License

Getting a car dealer’s license can have great benefits for you if you want to enter the car selling and buying business. Different states have different laws for issuing car dealer licenses and if you want to apply for one, then the first thing you should do is to contact your local Department of Motor Vehicles(DMV) and find out about the rules and regulations involved in getting a car dealer license issued in your state. While there are minor differences in laws in each state, the steps involved in getting a car dealers license are more or less the same and encompass the following:

Decide On Whether You Want To Become A Retail Or A Wholesale Dealer: Car dealers can broadly be divided into wholesale and retail car dealers. While wholesale dealers can sell only to other dealers, retail dealers are the ones who get to sell to the public. As such, retail dealers have to be more responsible and are required to pay larger bonds and require more insurance. At the same time, they also make larger profits, so the cost more or less balances itself out.

Pass The Car Dealer Test: Almost all states require you to pass a Car Dealer License test before you get a dealers license. While tests are mandatory in most states, in California, you will also be required to sit through six hours of classes before you are allowed to take the test. Once you clear the test, you go on to the DMV approval stage for getting your license.

Get Your Location And Dealership Approved: Once you have passed the dealers license test, you go on to get your site approved. For this, you will need to submit photographs of your dealership and also allow for an on-site inspection. There are several issues that you need to pay attention to during this stage out of which, we mention the pertinent few.

Photographs: you will be required to submit not one or two but eleven photographs of your dealership. The photos that you are required to submit will be of:

· The Building
· Outside Sign
· Inside Signs
· Display Area
· Telephone
· Office
· Locked Cabinet
· Checkbook
· Business License
· Resale Permit
· DMV Dealer Book

Zoning: Zoning is an extremely important issue for dealers who want to get a retail license and might prove to be stumbling block for many. Make sure that the area you set up your dealership in has the required zoning permission for a retail dealership before starting your dealership. In order to get your dealership approved, you will have to submit a zoning approval letter to the DMV.
Other Documents: Other documents that you will need to submit for getting your dealership license are:

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