This is a layout of Ga. Used Car Dealer License Requirements for your review.
Don’t make the mistake many others do, find your location first! It must be zoned as per the city in which you are doing business in. A Georgia Used Car Dealer License Requirements specifically require you to have a commercial place of business, you cannot operate from home (typically). Requirements state that you have to attach proof of your lease with pictures and you want to use for this proposed this location in your application for articles of incorporation from Georgia as well.
Dealership Class – certificate is good for 12 months
-Dealership corporation set up and LLC
-Facility (Your office space lease)
-Business Insurance
-Phone
-Surety bond
-Cert of occupancy
-Signage
-Office set-up
-Location Inspection (if applicable)
-Application
Its not terribly difficult to find a facility or small office in metro Atlanta for about $300-$400 or so. If you get some parking space, look at additional cost there. My advise is to have at least 2-4 months of rent on hand in start-up capital. To set up your corporation, obtain the necessary forms from the Georgia Secretary of State’s office, or go through the online registration process.
It’s a great idea to keep a copy of all documents that you produce, use and receive (from all parties) for this process.
The business of used car dealers in Georgia is regulated by the Georgia State Board of Registration of Used Car Motor Vehicles and this is where you need to file your application. Georgia Used Car Dealer License Requirements are basic and can be managed…just follow your checklist
Get your application from DMV, you won’t submit it until you have your articles of incorporation back from Georgia Secretary of State, and your actual physical location (the commercial place of business attached to your license). Furthermore, you have to attach other documents and proof. The application will ask you to attach proof of insurance, location and completion of your education course as well.
Step #1: Get a physical facility whether its an office or car lot location. File your articles of incorporation. In your application you need to show you have a valid place of business, which includes “a sales room or sales office in a building or on an open lot of a retail used car dealership or at which a permanent business of bartering, trading, offering, displaying, selling, or buying is carried on, or at a place of business at which the books, records and files necessary to conduct such business are kept.”
Step #2: Get a Sales Tax ID Number
You can get one from the Department of Revenue.
Their phone number is 404-417-4490.
Step #3: Attend a pre-licensing seminar
Any candidates wishing to get a Georgia Used Car Dealers License must attend a 4 hour class. In addition to this, all licensed dealers are required to obtain 6 hours of continuing education in order to be eligible to renew their licenses. Here is a good resource:
Georgia Independent Automobile Dealers Assoc. (GIADA) – 770.745.9650
Step #4: Provide an original certificate of Business insurance
Don’t confuse insurance with your surety bond. Insurance protects the physical dealership in case some slips and falls in your office. It supports your Dealer Plates too, so you have to have it . There are a few important things to remember here. In the application form you need to put the policy number and not the binder number. You also need to specify the amounts of your limits, such as $25,000, $50,000 or $100,000. Your certificate must include the policy number and the amount of limits or single limits.
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Step #5: Double check your location requirements
The most important aspect of your location for Georgia Used Car Dealer License Requirements is the zoning as per the city in which you want to do business in. Take this time to double check the accuracy of your facility (office or car lot). Your application must show you have a valid place of business, which includes “a sales room or sales office in a building or on an open lot of a retail used car dealership or at which a permanent business of bartering, trading, offering, displaying, selling, or buying is carried on, or at a place of business at which the books, records and files necessary to conduct such business are kept.” Each of your locations must have a land line telephone, registered under the name of the license holder. Finally, you need to attach photos of the location clearly displaying the sign.
- Provide photos of your business sign, building, and sales room or sales office.
- Establish a permanent land-line telephone
An inspection of your business location will be conducted before you can be issued a Georgia used dealer license.
Step #6: Secure a $35,000 Georgia Used Motor Vehicle Dealer Bond
Don’t get scared when you see $35,000 bond. A surety bond is Georgia’s way of making sure you will run your business in compliance with state laws. It also acts as protection to your customers, and makes sure a dealer will not deceive them in any way. The used car dealer bond is obtained through a surety bond agency. Depending on your credit, you’ll pay about 10-15% of this amount per year. Once you buy your bond, it will be mailed to you by the surety bond company. Attach the original bond with your license application and keep a copy for your records of course.
Step #7: Get your background check
You can do this through the Georgia Applicant Processing Services (GAPS)
There is a $52.75 processing fee.
Step #8: Fill out Used Car Dealer License application and Pay your fees.
A complete application includes the license fee, surety bond, certificate of insurance, photographs, certificate of zoning compliance, and applicant must have been fingerprinted at an approved GAPS service site.
The application fee is $170.
Make checks payable to the “Used Motor Vehicle Dealer Board.”
Fill out and submit application with all the above mentioned documents and attachments.
Application can be downloaded here
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Step #9: Mail it off
Now collect your completed Georgia Auto Dealer License application, with all of you documents, certificates, photos, cards, and fees, to the following:
Georgia State Board of Registration of Used Motor Vehicle Dealers
Used Motor Vehicle Dealers Division
237 Coliseum Dr.
Macon, GA 31217
Step #10: Wait
Assuming your background check comes back ok, and your location is properly zoned, you have nothing to worry about. If you do get approved, your Georgia Car Dealer License will be mailed to you within 3 weeks.
If you are not approved, you should receive a letter within 3 weeks.
For questions or concerns with the licensing process, call the Georgia Motor Vehicle Division at 478-207-2440.
Georgia Used Car Dealer Licenses are valid for two years, expiring on March 31 of even-numbered years.
Depending on when your GA Auto Dealer License was issued, your initial licensing period might be for less than two years. The required Georgia Used Motor Vehicle Dealer Bond covers the same period.
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