A Guide On How To Obtain Dealers License

By Mona Moody

In order to start a car dealing business, certain conditions must be met. One is getting licensed. They are a number of conditions that an applicant has to satisfy to get one. As you seek to find out how to obtain dealers license, it is important to know that every state has its own requirements. These are put in place to promote fair business practices and quality products for buyers.

However, there are some common requirements. The first is satisfying eligibility requirements. Applicants must be 18 years old or older, have a place of business and have a legally registered business. You will be required to present a copy of your property tax statement or the agreement for leasing or renting the premises with a minimum valid period of one year.

In some states, commercial zoning, permanent outdoor signage, regular hours and telephone book listing are also required. Applicants who have been involved in bankruptcy action or convicted for a grave offense may have their application turned down. The sole proprietor or each partner is required to file a separate financial statement or one that enumerates how they source their funds. Individual personal history statements are also required.

Those who are banned from holding a registration certificate or license at the time they make the application can also not be licensed. Those who are recorded in the register of disqualified company directors can also not get licensed.

Foreigners who desire to set up a dealership will be required to provide an international passport in order to complete a check which is routinely carried out on working visas. The visa holder must have permission to work in the country.

If everything is in order, the application may be granted. There is a fee that is charged and it varies from state to state. There is also a fee that has to be annually. In some states, a dealer is allowed to obtain dealer plates at an extra fee.

Another requirement for getting licensed for a dealership is that they are bonded. This is another requirement that is in different in the different states. The bonds are available from most insurance companies. In some states, dealers are bonded for a certain amount if they are selling mobile homes, travel trailers and new vehicles. The bond amount is lower if they are selling used cars.

Once the application is granted, you have the green light to acquire used cars to sell as spare parts or whole. You can also sell them on behalf of another party for gain. A dealer can also sell a vehicle that has been leased to the leaseholder according to the terms of the lease. Negotiating the sale or purchase on behalf of another person is also permitted.

Another important part of how to obtain dealers license is to fill a number of forms which must be completed correctly. With your Business License Application The forms are different in every state and a practical place to start is to find out the requirements are for the state where you want to start you vehicle dealership business.

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