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Dealers License
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Dealers License - June 21, 2011, 09:29 AM

How many cars/bikes can you sell before DMV requires you to get a dealers license? How does that work? What are the steps to obtain one? Do you have to take a class now? How much does it cost?
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June 21, 2011, 09:31 AM

i think its like 4-6 or something like that....there is a test involved and you have to submit forms and pay a fee or something like that....plus you also have to have business address (cannot claim home address)


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June 21, 2011, 09:32 AM

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Originally Posted by JWZelibor View Post
i think its like 4-6 or something like that....there is a test involved and you have to submit forms and pay a fee or something like that....plus you also have to have business address (cannot claim home address)
What if you have an LLC would you still need a business address?
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June 21, 2011, 09:32 AM

I believe it's 5 I used to have one.
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June 21, 2011, 09:32 AM

How to Apply for a Dealer License
Get your place of business ready. Your business space will have to be inspected before you can receive your license.
Generally, you must first choose a location and meet all state and local zoning regulations. Your dealership must be at least 250 square feet in size, in a permanent, enclosed building that is not used as a residence.

You must devote sales, service, and office space solely to the dealership and have adjoining space large enough to display at least 10 vehicles.

Finally, your office must be equipped with a desk, chairs, filing space, a working phone in the dealership's name, and working utilities such as electricity and heat. You must also maintain records according to the law.

By law you must display a sign at your place of business with the name of your company in letters at least six inches tall. You must also post your hours of operation. Your dealership has to be open at least 20 hours a week, 10 of which between 9 a.m. and 5 p.m., Monday through Friday.


Complete the required two-day dealer course. These are conducted within the Virginia Community College System by the Virginia Independent Automobile Dealers Association (VIADA).


Pass the independent dealer-operator qualification test at any DMV Customer Service Center. The exam costs $25 to take. You can download a study guide online.
Once you pass this test and become qualified, you may apply for your license with the Motor Vehicle Dealer Board. The qualification certificate you receive in the mail is not a license to buy and sell motor vehicles. When you receive the certificate, however, you can apply for your license and perform limited functions in your business.


Present a completed application form at a DMV Customer Service Center along with proof of a $25,000 bond (this may be waived if you are already licensed for another type of motor vehicle dealership). There are additional attachments you'll need to include.


Pay the licensing fees, which total about $500 the first time you apply. On the fourth year, your renewal fees will be $250 less.


You may also be interested in signing up for Virginia's Online Dealer Program. The Automated Interface System used by this program allows dealers to title and register vehicles online, and issue documents and license plates to customers at the dealership.


Salespeople at the dealership must also be licensed. In order to apply for a license, each salesperson must be an employee of the dealership (not an independent contractor) and must also pass a licensing test at a DMV Customer Service Center.
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June 21, 2011, 09:33 AM

Quote:
Originally Posted by Carnage

What if you have an LLC would you still need a business address?
Yes, you need a "lot" address/location for the dealer's license.


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June 21, 2011, 09:34 AM

46.2-1993.8. Dealers required to have established place of business.

No license shall be issued to any motorcycle dealer unless he has an established place of business, owned or leased by him, where a substantial portion of the sales activity of the business is routinely conducted and which:

1. Satisfies all local zoning regulations;

2. Has sales, service, and office space devoted exclusively to the dealership of at least 250 square feet in a permanent, enclosed building not used as a residence;

3. Houses all records the dealer is required to maintain by 46.2-1993.22;

4. Is equipped with a desk, chairs, filing space, a working telephone listed in the name of the dealership, and working utilities including electricity and provisions for space heating;

5. Displays a sign and business hours as required by this chapter; and

6. Has contiguous space designated for the exclusive use of the dealer adequate to permit the display of at least ten motorcycles.

Any person licensed as a dealer by the Department under any provision of this subtitle on June 30, 1996, shall be considered in compliance with subdivisions 2 and 6 of this section for that licensee.
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June 21, 2011, 09:35 AM

Commonwealth of Virginia Department of Motor Vehicles
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June 21, 2011, 09:35 AM

5 in most places before you have to start getting lic.
Getting a dealers lic is pretty hard. You have to have a Lot of land for one. Then the paper work to get it is pretty up there and costly.

I have made this venture two times, one solo and one with a partner. i also tryied to buy Cycles USA before they closed. The best way is to buy an established place already. Second are the rules that govern new bike sales vs. used.

Easier to go used. Anyway its doable and Im in the process of trying to get my lic now.


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June 21, 2011, 09:36 AM

Oh damn...everyone must have been typing the same time I was.


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