Cost for Georgia Dealer License

I get asked several times a day, “what is the cost for Georgia Dealer License”. Starting a dealership in Georgia can be a great idea, thanks to the lower costs and the support provided by GF Auto Consulting LLC. In this article, we’ll break down the process and provide estimated costs involved in setting up and maintaining a small office-based used car dealership in Georgia.

I founded GF Auto Consulting LLC, years back, to help beginners and intermediate entrepreneurs interested in the used car industry. Whether you’re a local or an out-of-state entrepreneur, my firm can guide you through the process of opening your own used car dealership in Georgia. No worries. Ok, let’s look at the estimated costs associated with setting up and maintaining a small office-based used car dealership in Georgia:

Office Space: Affordable office locations in Georgia can be as cheap as $279-$300 per month, with an estimated security deposit of $700-800.

Zoning and Business License: GF Auto Consulting LLC assists entrepreneurs in completing all the necessary paperwork, including zoning and business license applications. Estimated fees for these licenses range from $180 to $400.

Insurance and Bonding: You will need to acquire a surety bond for and the appropriate insurance for your dealership. The cost of insurance may vary between $1,500 to $3,500 annually, depending on factors such as location, size, and the number of vehicles you plan to sell.

Georgia Dealer License: The Cost for Georgia Dealer License is comprised of a few things as I lis below. The actual filing fee for your Georgia Dealer License is $180, plus an annual renewal fee of around $50.

Basically, you will need $3K or so, for all of your expenses which are listed in more detail below:
-Dealer 4 hr. Class $160
-Dealership corp set up LLC $150
-Business License (if applicable) $100-$200
-Business Insurance $1300-1900 /yr – make a deposit
-Phone $150 install and $70/ month
-Surety bond $300-$500 / yr
-Cert of occupancy $200-$300
-Background check $70
-Facility (Your office space lease) $300-$400 per month ($700-800 to sign a lease)
-Signage $150-$250
-Office set-up (Usually pre- furnished)
-Application $180
——————-
——————
Total Expenses: $3380
We charge $1795 to do the running around for you. We have small office based locations around the Metro Atlanta area as well. If you are looking to open open up a car lot based dealer, or are an out-of-state resident, we charge $2295.

So, If you use my service, you are looking at Project Approximate Total $5045.

Just be aware, depending on how fast or slow things move along, you will have to pay at least two months or more rent on your location before your license is actually issued.
So, about $5-6K or so to start things up. Then you want to think about inventory.

Inventory: As a used car dealer, you will need to purchase vehicles at wholesale prices from nationwide auctions (Manheim, Adesa, IAA, Copart, ACV, etc). The cost of your initial inventory will depend on the number and type of vehicles you choose to stock, which can range from $5,000 to $50,000 or more. This is something to think about as you go thru the process of getting your dealer license. It’s not really part of the up front cost to get licensed, but it’s something that you need to have a budget for at some point. And last but not least, you need to promote your vehicles.

Marketing and Advertising: Promoting your dealership is essential to attract customers. The cost of marketing can vary widely depending on the strategies you choose to employ, such as free online advertising, print ads, flyers, or social media campaigns. Expect to spend at least $500 to $2,000 annually on marketing efforts. One thing to remember, the less money you spend, the more time you have to spend. Time is money, so choose wisely. Its very difficult to really scale and grow a business, strictly off of word-of mouth, and it takes longer.

As you can see, the cost for a Georgia Dealer License, is not too expensive. Just imagine if you lived in Tennessee, where you have to have an 18 car lot location requirement to get a dealer License there!