Can I Get A Dealer’s License Without A Car Lot?

Can I Get A Dealer’s License Without A Car Lot?

The first which came across our mind is to have a car lot to acquire the license but there are other things to deal with rather than big lots. Yes! You can acquire the dealer’s license without owning a car lot. Initially, there are several independent dealers available who commence their business in small car lots which are 101% genuine. There are numerous licensed sellers who don’t possess even car lots.

If you’re one of those people who’ve just step in the automobile industry, do not rush towards acquiring a huge set of inventory, start small learn first then invest in getting huge inventory. The license is issued by the state’s secretary who follows a certain set of laws before applying for an auto dealer’s license.

There are a few categories of car dealers who require the license to sell more than three in 12 month period i.e. independent dealer, franchise dealer, wholesale dealer, auctions, service facility and salvage.

State laws never stated auto dealers to have car lots but they want auto dealers to retain license who commence their business in the above-mentioned category.

Visit The Zoning Department

Get in contact with the zoning department of your city and country. Look for the requirements which make you eligible to sell vehicle commercially or from the resident. If you’re selling one or two vehicles that are permitted under the zoning laws. Zoning laws do not restrict you from putting the vehicles for sale but they set limitations in terms of quantity for how many you can sell the cars at one time.

Connect With The Department Of Motor Vehicles

Contact the department of motor vehicles for your state to set up a site inspection. It’s not a compulsion to have a car lot to sell vehicles but you’re required to have a place where you can keep the business records and books to keep for a continuous basis. The DMV conducts inspection a representative will perform at your business location or home.

Fill Out The Dealer Application

Collect and complete the dealer application from the Highway Safety and Motor vehicles division. The application goes to the secretary of state also it goes to the HSMV. It requires proof of application and you have contacted the DMV representative for the submission of the application to the state secretary.

Dealership Training Course

Get yourself registered in the course from the approved providers, registers for the course. The number of hours you’ve completed is a different form of state and depends upon the type of dealer you’re. It requires proof of satisfactory completion of training and passing the course when you submit the application to the state secretary.

Registration Of Business Name

Register the business name with the state secretary which is responsible for registering the name of your business. If you’re running the business from a different name than yours then submit the application under business registration in terms of the type of business entity, sole proprietorship, partnership, corporation or LLC. You have to submit the registration proof with an auto dealer license application.

Fill An Application For The Sales Tax Number

Apply for the sales tax number within the state also contact the department for the same to apply for a tax number. Through this number, you can collect the charges and collect the sales tax from customers then you should pay to the state.

Register For The Surety Bond

Contact an insurance agent to acquire the surety bond also the license application comes with a minimum amount which varies according to state.


Can I rent a dealer’s license?

To commence the business as a used car dealer in most of the states is to own dealer’s license of your own and buy and sell cars and there is no option of renting to do the business.

Can I sell the auto without the dealer’s license?

There are few states which allow selling of 2-6 vehicles without acquiring a dealer’s license.

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