Laws Governing Motor Vehicle Businesses

The State of North Carolina has a high regard for auto dealers because they have a large impact on the state's economic health. Yet, there are tight regulations in place in order to protect consumers from unscrupulous dealers.

The North Carolina Department of Transportation (NCDOT) License and Theft Bureau enforces the rules and regulations that govern auto dealers. Its Dealer Regulations Manual is a must-read for any auto dealer or anybody thinking of opening a dealership in North Carolina. The manual is available online, and dealers may request printed copies at no charge so that all employees have access to it.

The Dealer Regulations Manual has definitive information regarding the licensing of dealers and sales representatives, including wholesalers and retailers. It also lists statutes affecting dealers, word for word. It is important to understand the laws because they are strictly enforced by the Bureau.

Legislation affects where you can conduct business, how you may advertise, and unfair competition practices. Statutes regulate dealer warranty obligations, salvage vehicles and auto parts, and how dealer license plates may be used. The manual also contains many forms that you will need to start your business.

Continuing Education Requirements

Independent dealers are subject to continuing education. A six-hour course is required once a year, by June 30, in order to renew your dealer license. Any dealer with an independent dealers license or an ID dealer license tag must complete the course, as mandated by House Bill 432. For partnerships, one partner must take the class. For corporations, one officer must take it.

The course mainly updates dealers on changes in legislation, but it can also contain business topics. The course is available at different schools, such as your local junior college. Topics include licensing requirements, vehicle inspections, registration and titling, the Federal Trade Commission, notary duties, bankruptcy, and other laws that govern dealers. It may also discuss frequently used forms, dealer disclosures, and powers of the commissioner.

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