How to Obtain a Car Dealer's License in Georgia

Only used car dealerships require licensing within Georgia.

The state of Georgia does not require franchised new or used car dealerships to obtain state licensing but rather, the franchise dealership has an agreement with the vehicle manufacturers regarding business practices, according to the Georgia Board of Used Motor Vehicle and Vehicle Parts Dealers. While a new car dealership (non-franchise) in Georgia is only required to obtain a local business license, operating a used car dealership (that is not a franchise) requires a state license.

Things You'll Need

• Pre-licensing seminar fee (varies)
• Official place of business
• Landline telephone
• Permanent business sign
• $35,000 surety bond (as of 2010)
• Insurance certificate (original copy)
• Business photographs
• CRF-002 form (state sales tax number application)
• $55 background check fee (as of 2010)
• Used Car Dealer Application
• $170 application fee (as of 2010)

Instructions

1. Attend a Board-approved pre-licensing seminar within the state of Georgia prior to submitting an application for a used motor vehicle dealer license. The Georgia Independent Auto Dealers Association (GIADA) has been in operation for more than 50 years and offers pre-licensing seminars throughout the month. As of 2010, the GIADA pre-license seminar costs $95 per person. Arrive at least one hour prior to the seminar time, as you must register and pay the fee before the class starts.

2. Purchase or lease your official place of business and establish a landline telephone number and a permanent sign that informs consumers you sell used cars. Also purchase an insurance policy for your business. After you have established your business location, you can then begin the licensing application process.

3. Download the application from the Georgia Secretary of State website, Used Motor Vehicle Dealers Division.

4. Obtain a $35,000 surety bond that has been executed by a surety company. Make sure that this bond expires on March 31 of an even year and includes the exact name of business, power of attorney attachment and your signature. The March 31 expiration date is required by the Georgia Secretary of State Used Motor Vehicle Dealers Division to maintain accuracy on surety bonds for all dealers in the state.

5. Include your original certificate of insurance for your business. This certificate should clearly state your policy number, claim amount limits and the exact address of your business.

6. Photograph your place of business, landline telephone and your outdoor business sign that clearly states you are a used car dealership. You should include a maximum of 10 photographs within your application that clearly depict where and what your dealership looks like.

7. Apply for a state sales tax number from the Georgia Department of Revenue by filling out the CRF-002 form. Attach a copy of the CRF-002 form if you do not have your official sales tax number by the time you submit your license application.

8. Schedule a time to obtain a criminal background check, which includes fingerprinting, at a certified Georgia Applicant Processing Services (GAPS) location. Visit the GAPS website to register and pay the $55 applicant fee (as of 2010). The ORI/OAC and Verification Code necessary to register for this service can be found within the Used Car Dealer Application Packet.

9. Fill out the application, include the $170 (as of 2010) application fee and send the entire packet to The Office of Secretary of State, Professional Licensing Boards Division, 237 Coliseum Dr., Macon, GA 31217. The licensing board will review your application, normally within 30 days, and if accepted, you will then be licensed to own and operate a used car dealership in the state of Georgia.

Tips & Warnings

• Review the application packet to find a full checklist of what you need to do and include within your license application.

• If you do not carefully following the licensing procedure, your application will be denied.

References

• Georgia Board of Used Motor Vehicle & Vehicle Parts Dealers: FAQs
• Georgia Board of Used Motor Vehicle & Vehicle Parts Dealers: Seminars
• Georgia Independent Auto Dealers Association: Pre-License Seminars
• Georgia Department of Revenue: Sales Tax Number Application Form CRF-002
• Georgia Applicant Processing Services: Applicant Registration

Resources

• Georgia Board of Used Motor Vehicle & Vehicle Parts Dealer: Application Packet