Dealing cars without a license is illegal, and if you get caught, it can make it harder to get a license in the future. Ultimately, the good news is that you don't have to have any kind of lot space to get a dealer's license. You can go through a process that's fairly similar to the licensing process for a dealer with a lot. The auto dealer license application process can be fairly long and involved, but with the right know-how, thousands do it every year.
The steps you'll need to follow will include:. There are a few special considerations to know for dealerships without lots. If you're planning on displaying vehicles for sale at your home, check local laws first. There may be a limit on how or where you can display them. You'll also still need to list a place of business on your paperwork.
This should be where your records are kept. Whether you have a lot or not, getting a surety bond is essential for becoming a licensed dealer.
If you're not sure exactly what a surety bond is, don't worry—many people aren't quite sure at first. Check out our page on What Is a Surety Bond? Basically, a surety bond serves as a guarantee that your business won't engage in unethical conduct. That can include everything from misrepresenting a vehicle's condition to not paying sales taxes. The OL inspector will:. Mail your completed form and fees to your local OL inspector. Participation in the Business Partner Automation Program is mandatory for new vehicle dealers and optional for used vehicle dealers.
The program authorizes our partners to process and issue validated registration cards, full year registration stickers, automobile, commercial, motorcycle, exempt vehicle license plates, and sequential Arts Council License Plates from their remote locations. Apply for the Business Partner Automation Program. New and used vehicle dealers must obtain a NMVTIS report for any used vehicle offered or displayed for sale, and must display a warning on the vehicle when the report indicates the state has branded the title.
Dealers who will be providing automobile servicing and repair are required to file an application with their local Bureau of Automotive Repair office. The application process takes approximately six to eight weeks and includes a fee.
Contact us if you have any questions about applying for occupational licenses. This guide contains additional information for vehicle dealers, including laws and regulations, permits and licenses, records, supplies, and more. When your chat is over, you can save the transcript. Use caution when using a public computer or device. The DMV chatbot and live chat services use third-party vendors to provide machine translation. Machine translation is provided for purposes of information and convenience only.
The DMV is unable to guarantee the accuracy of any translation provided by the third-party vendors and is therefore not liable for any inaccurate information or changes in the formatting of the content resulting from the use of the translation service. Class D Broker - A licensed broker is a dealer who, for compensation, brings a buyer and seller together, negotiates the terms of a transaction, or displays a vehicle offered for sale.
In the broker's role regarding the sale, purchase, lease or exchange of vehicles or salvageable parts, the broker does not have title or other legal interest in the vehicle or salvageable part. A person who conducts a vehicle auction is a type of broker and requires a Class D license. Class F Vehicle Scrap Metal Processor - A licensed vehicle scrap metal processor dealer processes vehicles into scrap metal by shredding, shearing, fragmenting, baling, or similar means.
Crushing is not considered a scrap metal process since it is not the final step before remelting. Class G Vehicle Salvage Pool - A licensed vehicle salvage pool dealer stores and displays damaged or distressed vehicles for insurance companies. Class H Foreign Salvage Vehicle Dealer - A licensed foreign salvage vehicle dealer is licensed in another state and is engaged in this state in the business of purchasing, selling, or otherwise dealing on a wholesale basis in salvageable parts or late model distressed vehicles.
This dealer buys or otherwise acquires late model major component parts for resale, either at wholesale or at retail. Class R Automotive Recycler - A licensed automotive recycler dealer buys or otherwise acquires late model major component parts for resale, either at wholesale or at retail.
Class W Wholesaler - A licensed wholesaler dealer engages in the business of buying and selling used vehicles from and to licensed vehicle dealers.
Wholesalers may not buy, sell or otherwise deal in vehicles to a person other than a licensed vehicle dealer. Additionally, only a Salvage Vehicle Agent may buy salvage or scrap titled vehicles at an auction. All dealers must complete an application; have an established place of business; obtain fingerprints through Identix and provide copies of Articles of Incorporation or Assumed Name Filing for the business.
New and used vehicle dealers must also have Michigan No-fault fleet type insurance; either their own registered repair facility or an agreement with a registered repair facility; and at least 2 dealer plates.
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