What are the requirements to opening a car dealership?

Answer 1

I'm using the North Carolina regulations because that's where I live. I would imagine most states are similar. The requirements are very high, in my opinion, and they're that way on purpose--to keep rip-off artists from opening car dealers that sell used cars with cracked blocks. You need: An established salesroom of at least 96 square feet, in a permanent, enclosed building which is separate and apart from any living quarters, residence or other business, and having a separate entrance. This established salesroom is required to be in compliance with all zoning ordinances and regulations. You must furnish a corporate surety bond, cash bond, or fixed value equivalent of bond, in the amount of $50,000 for your first salesroom and $25,000 for each additional salesroom. You need a sign designating the trade name of the business in block letters not less than three inches in height on a contrasting background. You must file an Assumed Name Statement with the Register of Deeds, and provide the DMV with a copy of it, if you are operating under any name but your own. (Example: If your name is Fred Jones, you can open Fred Jones Motorcars without filing an assumed name statement, but you must file it if you're operating as Right Price Motors.) If you're operating as a corporation, you must file Articles of Incorporation with the Secretary of State, and put the first page of the corporate charter into your license application. You must have liability insurance for your dealer plates, and must provide the policy number or binder number. You must purchase a "Traders" license from your local municipality and county--some parts of NC require both city and county business licenses, some only county, and all have a special category for car dealers. Your mailing address and actual address must be the same. You can't get a license to sell cars if you have, within the five years preceding your application date, been convicted of: receiving or transferring stolen vehicles (or stealing them yourself--that falls under "transferring"), fraud in connection with rental vehicles, injuring or tampering with vehicles, or making false affidavit...also felonies involving "moral turpitude." You need prove you've been to the 12-hour licensing course if you're applying for initial licensing, or the 6-hour course if you're renewing your license. AND...before they'll issue you a license, your dealership has to be inspected! The fees: For the dealer's license: $75.00 For a sales representative's license: $15.00 Dealer plates: $28 each for the first five, $14 each after that Transporter plates: $10 each Temporary plates: $25 per set of 25 And THEN you need some cars!