Dealer Licensing in Pennsylvania
The application process for an auto dealership license borders on epic. But to save you time, be sure you know beforehand what license you are applying for. This is important; you will be allowed to sell only the type of vehicles you are licensed for.
- New motor vehicles: cars, trucks, buses, and light vehicles
- Used motor vehicles: cars, trucks, buses, and light vehicles
- New recreational vehicles: motorhomes and travel trailers
- Used recreational vehicles: motorhomes and travel trailers
- Trailers: semitrailers and pole trailers
- New or used motorcycles: motorcycles and quadricycles
- New or used mobile homes
- New or used special vehicles: ambulances and hearses
- New or used all-terrain vehicles (ATVs)
Getting a dealership license is a lengthy process and not for the faint of heart. Make sure all of your information is accurate, for it will be scrutinized by the Pennsylvania Department of State's Board of Vehicle Manufacturers, Dealers, and Salespersons. Any information deemed false will either stall or terminate your license quest.
These are the steps you need to take and paperwork you need to provide:
- Submit a completed Vehicle Dealership Initial License Application (Form 60-SPOA 2602B). Be sure to complete it in black ink only.
- Include photographs of the following: your building and display area; your office, including phone and file cabinets; your dealership's sign; and where your business hours are posted.
- Provide a detailed hand-drawn diagram on letter-size paper of your dealership's layout.
- Send a copy of your lease or deed proving that your property is rented for at least six months.
- Provide a copy of a phone bill or a letter from the phone company verifying that your business has at least one working phone line.
- Submit proof that your business conforms to all local zoning codes.
- Include a copy of your Certificate of Occupancy as issued by the Department of Labor and Industry.
- Send information covering the last five years involving each partner, director, and owner.
- Include a Salesperson Initial License Application or Salesperson Change of Employer/Reactivation Application for each sales agent.
- Send a completed Request for Criminal History Check from the Pennsylvania State Police.
- Submit a completed Application for Vehicle Dealer Registration Plates (Form MV-349).
- Submit a completed Manufacturer/Dealer/Full Agent/Card Agent/Messenger Service/Salvor Bond Form proving you have a $20,000 bond per location.
- If you're selling new vehicles, include a letter from the manufacturer proving you're in compliance with Section 9 of the Board of Vehicles Act, as well as two copies of the franchise agreement for the vehicles to be sold.
- Include a check for $65.
The auto dealer industry is highly regulated, down to the physical requirements of your dealership. Whether you sell used cars or new, make sure your site adheres to the following:
- Must have a permanent enclosed building that has a private office for the storage of files.
- Must have a display area that can hold a minimum of five cars with doors open.
- All outdoor display areas must be properly graded and have adequate lighting.
- Must have at least one phone line for business purposes.
- Must have a sign attached to the building or built separate that displays the dealership's name and can be seen by the public.
- Your dealership must conform to all local building codes and zoning ordinances.
- Business hours must be posted somewhere easily visible to the public.
- Must own a certificate of occupancy that meets all standards of the Pennsylvania Construction Code Act.
Once all of your forms and documents are deemed in order, your dealership will be inspected by a vehicle board agent. If everything is satisfactory, you will be issued a temporary authorization allowing you to open for business while your license certificate is processed. Your license and Dealership Identification Number (DIN) will be mailed to you in about four weeks.
You will need to renew your license before May 31 of every odd-numbered year. You can find a list of renewal fees for every type of dealer license at the bottom of the vehicle board home page.
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