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How to Get an Auto Dealer License

how to get an auto dealer license

If you love cars, you may have considered owning an auto dealership. After all, this route would give you an opportunity to talk about cars all day long, geek out about their features, and help people find the vehicle of their dreams. But starting and owning a dealership doesn’t solely hinge on your love for cars. 

In between your idea of creating a business and opening your door lies a lot of paperwork that you have to mow through, and most of that paperwork centers around one thing: getting your auto dealer license. This step is crucial, especially if you want to own a legally operating business in whatever state your dealership is located. 

However, while necessary, most people don’t know how to complete this step, so it’s easy to wonder how to get an auto dealer license. And even though it’d be nice to say this document is easy to acquire, getting a license is actually harder than you might expect. 

Do you need an auto dealership license? 

Before explaining how to get an auto dealer license, first things first. Do you even need one? As mentioned earlier, obtaining this license is necessary if you want your dealership to be a legally operating business. But there are some exceptions to this rule. 

If you don’t want a dealership license but would like to sell a car, the title for that vehicle must be in your name, and you must use that vehicle for personal, family, household, or business purposes. For example, maybe you want to buy a new car, but you need to sell your current one first. In this case, you can do so only if the car title is in your name. 

Every state gives you the power to sell your personal vehicle. But if your name isn’t on a title, you can’t sell the car, or you’ll commit an illegal act called title-jumping, which is a crime in every U.S. state. 

Of course, you may be wondering if you can simply title a car in your name before you sell it, but this loophole doesn’t exist. While you wouldn’t be title-jumping anymore, you’d still have to prove that you used the vehicle for business, family, or household reasons. 

So, if you plan on selling multiple cars—and not a personal vehicle that you own and actively use—you need to get an auto dealer license. Otherwise, you can get in trouble and suffer some consequences. 

Which auto dealer license do you need? 

Once you know whether an auto dealer license is necessary, it’s time to pick out the type of license you should pursue. Ultimately, the path you choose will depend on the kind of dealership you plan to run. 

One of the best things about being an auto dealer is that you can decide which type of vehicles to sell. For example, here are three common options. 

1. An auto dealership with new vehicles

If you plan to operate a dealership with new vehicles on the lot, you’ll likely need to be franchised directly through a manufacturer to operate legally in your state. Once you get that sorted out, you’ll need to pursue a new dealer license. 

2. An auto dealership with used vehicles

Perhaps you only want to sell used vehicles. If that’s the case, you may not need to be franchised directly through an auto manufacturer. But you’ll still need to acquire a used vehicle dealer license. 

3. An auto dealership with new and used vehicles

Owning a dealership with both new and used cars is possible. However, you’ll probably need to get an auto dealer license for each type of car sale you hope to pursue. 

Also, it’s important to keep in mind that a dealership that sells new vehicles can quickly start selling used cars. But for used car dealerships, you can only sell used vehicles, so keep that in mind when you’re deciding which type of dealership to own. 

4. An auto dealership without a lot 

In this digital age, you may consider having a dealership without a lot. This strategy would reduce a lot of startup costs, so it’s understandable if you want to take this route. 

Some states will let you operate your business online, but that doesn’t mean you can avoid licensing. You still need to acquire the right dealer license and follow your state’s laws even though your business is digital. 

Meet the state requirements for licensing

One part of learning how to get an auto dealer license is knowing your state's requirement

Nailing down the type of auto dealer license you want will allow you to take the next step towards legitimizing your business: reviewing your state’s requirements for licensing. Most states will have some of the same guidelines. 

For example, you’ll most likely need to secure a properly zoned location (if you’re getting a lot) and have your location and business approved. Additionally, a few other standard requirements may arise, including the following: 

  • Meeting your zoning requirements 
  • Providing proof of insurance 
  • Registering your business
  • Passing a background check
  • Attending a pre-licensing seminar
  • Arranging a business inspection 

Of course, these requirements are not set in stone. Your state may have some of these guidelines, or they may have a completely different set of criteria. For the best chance of success, research your state’s specific requirements for an auto dealer license. 

Don’t forget to acquire an auto dealer bond

No matter your business location, you’ll likely need to get an auto dealer bond before you apply for a license. A surety bond will protect your customers and allow them to make a claim against you if they believe you’re running an unethical, fraudulent, or unlawful business. 

The cost of the auto dealer bond will only be a small percentage of the total bond amount. However, the bond cost will vary depending on different financial factors like your personal credit. 

Once you’re ready to get an auto dealer bond, it’s best to go through a transportation agency like Barry Risk Management. Acquiring a bond can get tricky if you’re doing it on your own, but it can also be relatively easy if you have help. 

Submit a licensing application

The final step for getting an auto dealer bond is simple: submit your licensing application. This step will be straightforward if you’ve completed everything else, but there will be a lot of paperwork involved. 

For example, when submitting a dealer license application in New York, you have to complete several steps for the Department of Motor Vehicles that require you to either fill out or obtain information. Failure to have all the correct documents will prevent you from applying to get an auto dealer license. 

If you don’t want to face any potential roadblocks, the best solution is to find a transportation agency to handle everything. Companies like Barry Risk Management, which has over 30 years of experience in the DMV industry, can help New York dealerships get their licensing. 

Even better, Barry Risk Management does everything online, so you don’t have to come inside an office and wait for a representative to speak with you. All you need to do is make a phone call, and you’ll get the assistance you need. 

To get your car dealer license in New York, call 1-888-995-TAGS(8247) to speak with a representative at Barry Risk Management. 

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How Much Does It Cost to Renew Your Vehicle Registration?

the costs to renew your vehicle registration

In 2020, most state governments provided wiggle room regarding the deadline for renewing vehicle registration. With the pandemic disrupting many everyday activities, state officials thought it’d be best to extend the deadline for several DMV services, including vehicle registration renewals. 

Most states, like New York, extended the deadline all the way to November of 2020 to accommodate people. But today, those extensions no longer exist. In New York and other states across the U.S., your vehicle registration should be renewed at this point. However, that’s not the reality for many people. 

Whether you forgot about the extended deadline or thought state officials would extend it again, you’re in a situation where you haven’t renewed your vehicle registration. And this situation can lead to consequences, which is why you should get your registration renewed as soon as possible.

The consequences of not renewing your vehicle registration

When you don’t do something on time, you face the repercussions. For example, think about turning in a school assignment late. When that happens, you get an F unless your teacher is gracious enough to extend the deadline. 

If the teacher gives you extra time, you’re in luck—you can turn in the assignment by the new deadline and still get credit. However, if you still forget—or ignore—the extended deadline and don’t turn in the assignment on time, you can bet you’re going to face the consequences. 

About 430,000 Massachusetts residents are in this type of situation. Instead of renewing their vehicle registration by the extended deadline, they let their registration lapse. And now, they are in jeopardy of getting fined every time they drive their motor vehicle. 

What’s even worse is that there are 580,000 motor vehicles in the state with an expired inspection sticker, and those vehicles belong to the 430,000 residents, who will get fined multiple times if they have more than one vehicle with expired registration. If an officer pulls them over, they’ll likely receive a $40 fine, but the residents can get a penalty from multiple officers in one day, so that number can always increase. 

The worst punishment, however, is when the fines lead to higher car insurance rates. If an insurer notices that a driver is accumulating fines, the company won’t hesitate to increase its price. 

Consequences like these are common across every state, not just Massachusetts. State officials everywhere are fining residents who haven’t renewed their vehicle registration by the extended deadline. It doesn’t matter where you live. If your registration isn’t up-to-date, you’re at risk of receiving a fine and more expensive car insurance.  

The costs to renew your vehicle registration 

how much it costs to renew your vehicle registration?

If you want to renew your registration, you may be wondering how much it costs. Luckily, this service doesn’t demand a hefty price, but it does differ from state to state. 

In New York, for example, renewing your vehicle registration can be anywhere from $26 – $71, depending on the weight of your vehicle. If your motor vehicle is 1,650 lbs. or less, the registration renewal will cost $26. If it’s 1,751 lbs. to 1,850 lbs., the registration renewal will cost $29. And if it’s 1,951 lbs. or more, the registration renewal will be anywhere between $32.50 to $71.  

In Connecticut, on the other hand, the cost is different. If you live in this state and want to renew your vehicle registration, the price is around $80 for two years. However, you also have to pay an extra $10 for the Clean Air Act fee.  

Ultimately, the price for registration renewal depends on where you live and what your state uses to determine the costs. Common factors that play a role in determining the fee include your vehicle’s fuel efficiency, age, current value, and weight. But sometimes, DMV offices and transportation agencies also look at the number of cars registered in your name and your vehicle’s horsepower to see if your fee should be higher or lower.  

Where you shouldn’t go to renew vehicle registration

Once you know the cost of renewing your vehicle registration, it’s time to do it. But where should you go? The first answer is the most obvious one: the Department of Motor Vehicles (DMV). 

This option is usually the go-to route because it’s so well known. However, that doesn’t mean it should be the most popular. The DMV is notoriously slow, and the pandemic makes that fact even more true. 

DMV offices across the U.S. are struggling to address the backlog they’ve accumulated because of COVID-19. When their offices re-opened during the pandemic, DMV employees walked in to find more people than usual needing their help. 

The situation has gotten so bad that some people are waiting up to six months to complete simple transitions like license renewals, driver’s tests, and out-of-state transfers. And while vehicle registration is something that you can handle online, the DMV’s website is not as user-friendly as it should be to ensure a quick, seamless process. 

Where to renew your vehicle registration

If you want to renew your vehicle registration quickly to avoid fines and higher insurance rates, you can’t depend on the DMV. Instead, you need to use a credible transportation agency like Barry Risk Management, Inc. 

With over 30 years of experience in the DMV industry, Barry Risk Management, Inc. has the skills to help you renew your vehicle registration, and everything happens online. Unlike the DMV, the online platform that Barry Risk Management, Inc. uses is simple and user-friendly to ensure you get your renewal done quickly. 

And if any questions ever arise as you’re renewing your registration, Barry Risk Management, Inc. has representatives that are ready to help. Knowledgeable and friendly, a representative can guide you from start-to-finish until your renewed registration is set up, so you don’t have to worry about tackling any confusing phases alone. 

Don’t get a fine for not renewing your vehicle registration. Call to have Barry Risk Management, Inc. at 1-888-995-TAGS(8247) to renew your registration quickly!