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How to Complete A Dealer License Application

Date posted: 08/06/2012

by Kathy Teel on
in Buying & Selling

4422 How to Complete A Dealer License Application

If you want to own your own car dealership, the first step is applying for a dealers license. A dealers license will allow you to purchase new and used cars and resell them to the public.

Dealer License: State Requirements Vary

Although each state’s requirements to obtain and apply for auto dealers licenses vary, actually completing an application is quite easy. Just provide the information the application asks for.

Be aware that each state stipulates the number of new and used cars you can sell as a private party – sell more than that number of cars, and you’ll be slapped with a misdemeanor charge. Applying for a dealers license is therefore essential, if you wish to work in the auto industry.

Obtain a Dealer License Application Form

Visit your local branch of the Department of Motor Vehicles, or go to your state’s DMV website, to get a copy of the dealers’ license application.

Within the Dealer License Application Packet

The dealer license application consists of a number of forms, all of which must be completed in full.

These forms include but aren’t limited to:

  • Authorization for the release of your personal financial information.
  • Personal history questionnaire.
  • Disclosure of all criminal charges.
  • Job history.
  • Permission for the state to conduct a background check.

Additional Information for a Dealer License

You’ll have to disclose the proposed site for your car dealership, so that a property inspection can be carried out. This includes providing photographs of:

  • The office.
  • The lot (meaning, the place where cars will be).
  • The place where you can fix a sign.

Also be prepared to provide additional dealer-related information, such as a surety bond or some other form of financial collateral. The DMV will be able to give you more information about your state’s requirements and how you go about acquiring this.

Dealer License Application Processing Periods

Most states will make a determination on your application within three months.

Remember, your application must be complete or the process gets put on hold. A complete application will include all documents, letters of authorization, and necessary signatures, as well as the bond and fees. An incomplete application will be rejected, and the entire process will start over.

Are you in the process of applying for a dealer license? Let us know if we’ve forgotten any steps!

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About Kathy Teel

Kathy Teel is a freelance writer and editor, a sometime college instructor, and a perpetual student. She has written extensively in the areas of local law, business, politics, addiction and recovery, marriage and sexuality, parenting, education, and religion and spirituality. She is a founding member of her town’s community theatre and works with learning disabled children in her local school. She makes her home in Missouri with her husband, another writer/ editor/ student/ actor, and her three incredibly talented children. Kathy has been writing for a living since 2006, and would love to consider new projects. Contact her at More articles by Kathy Teel

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