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How to get Dealer License : Legal Guidelines for Car Dealers

How to get Dealer License for cars ??? It is the most common question arising these days. Getting a car dealer License is really an easy job but if guidelines are followed properly.There are several legal processes involved before you can get your auto dealer license and start selling vehicles. Compliance with these legal guidelines will enable you to operate as a legitimate dealership business in your area.

How to get Dealer License : Just Follow These Guidelines

Getting your own auto dealer license is a right. Not everyone has the privilege of getting this license, which
explains why the licensing companies are strict about the process to ensure that only those who are qualified
are awarded with them. There is a wide range of things you can do with a license and it opens up to the
possibility of using it to make profits for yourself. In fact, several individuals have made car dealing their main
source of income.

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But it is important to be aware that there are legal rules to observe and live by when you apply for and get your dealer license. These legal rules might vary from one state to another. Make sure to check in with your state so that you can practice your car dealership business legally.

Here are some of the legal guidelines you need to know when getting a car dealer license:

  • When filling up the application form, always provide an explanation for “yes” answers. Any of the following must also sign the initial application form: owner, corporate officer, or any member of the LLC.

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  • The credit bureau report is required for every applicant. The goal of this report is to help the licensing company to gauge the applicant’s financial capacity to operate a dealership business. The dealer license board requires all applicants to meet a minimum of 600 in empirical score. Make sure to check your credit report from any of the major credit reporting agencies. Also, check for any derogatory information to improve your overall credit standing.


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  • For applicants that had been charged, arrested, or involved in any felony or criminal offense, supporting court documents are required for submission upon application for auto dealer license. The violation excludes minor offense such as traffic violations.
  • An affidavit for the place of business must be complied with by the applicant. Do not miss out any important sections in the application form. In a place of business, the following requirements might be taken into account: space for displaying vehicles, access to restroom and electrical service, compliance with local zoning policies, provides public access for a minimum of 12 hours on a weekly basis, and exclusive use for the dealership business, or other entailing services. Sharing of business address with another business entity is not allowed.

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  • Once car dealer license and place of business affidavit are approved, the business owner must provide permanent sign indicating the business name and dealer license.
  • Dealer license applicants need to pass a written or mastery exam. This is an open-book type of exam, however. A dealer is not considered licensed until this test is passed.
  • Used car dealers need to obtain a special license. There are different costs associated with the application process, depending on what type of vehicles you wish to sell or what kind of license you want to apply for.

Licensing companies such as and have professionals who will
provide detailed information about what these legal guidelines are. Take time to understand and follow them
while practicing your profession to expand your dealership opportunities in the industry.

Author Bio:

Steve is an insurance sales agent from Boston. After talking hundreds, if not thousands of clients
for more than 8 years, and selling countless of insurance, he tried car dealership and got his license
from dealerlicensegroup a car dealer licensing
company, to try a different career challenge.

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