How to Become a Wholesaler for Cars in Montana

A Montana wholesaler can sell used vehicles to other car dealers.

Montana issues several types of auto dealer licenses. The Montana wholesale dealer license allows the holder to sell used motor vehicles to other licensed dealers, wholesalers and car auctions. Montana wholesalers must obtain a physical location for business, pass location inspections and obtain a bond and insurance. Applicants who meet the requirements can apply for a Montana wholesaler license with the Motor Vehicle Division of the Montana Department of Justice.

Things You'll Need

• Dealer inspection form
• Dealer license application
• Surety bond
• Proof of insurance
• Zoning compliance form

Instructions

1. Acquire a physical location for your business. Refer to the "General Information and Requirements for Application for a Motor Vehicle Dealer License" document at the Montana Department of Justice Motor Vehicles Department website to determine the requirements to pass the Montana dealer inspection. Wholesalers must have a permanent building for business and a record-keeping site that is not a residence. You will also need a computer, printer, Internet access, a conspicuous sign on the premises showing your business hours and a telephone number in the dealership's name accessible through directory assistance. Contact the local zoning board to ensure the lot you intend to purchase may be used for a wholesale car business.

2. Pass a local zoning inspection and retain a copy of inspection approval to submit with your license application. Download a "Dealer Inspection Form" from the Department of Justice website. Arrange for a dealer inspection from one of the following: the Montana Highway Patrol, a compliance specialist with the Department of Justice or local law enforcement. Call the Department of Justice Consumer Protection office at 800-481-6896 to reach a compliance specialist. Refer to the "Montana Highway Patrol" page on the Department of Justice website to find contact information for a district office of the highway patrol.

3. Contact local bonding agents to obtain a $50,000 surety bond. You must renew the bond every year, and the bond must have a December 31 expiration date.

4. Obtain a policy of general liability insurance that lasts at least one year. As a wholesale car dealer in Montana, you may purchase demonstrator plates for your vehicles. Purchase insurance that covers all vehicles that are operated by customers and bear a demonstrator plate. Use the dealership name and address on the policy, and have the insurance company list the Montana Department of Justice as the certificate holder. The policy must show the following address for the department: 1003 Buckskin Drive, Deer Lodge, MT 59722. Submit a copy of the policy that shows the agent's name and contact details, the policy expiration date and the policy number.

5. Print and fill out the "Dealer License Original and Renewal Application" form at the Department of Justice website. As of 2010, the fee is $30 for a wholesaler license. Obtain a money order for the appropriate amount made payable to the Montana Department of Justice. Send the application, fee and other documentation to the following address:

   Montana Department of Justice
   Motor Vehicle Division
   1003 Buckskin Drive
   Deer Lodge, MT 59722-2375

Tips & Warnings

• Holders of a Montana wholesale dealer's license may also sell the following types of used inventory: motorcycles, snowmobiles, quadricycles, boats, motor homes, trailers, travel trailers and special mobile equipment.

References

• Montana Department of Justice MVD: General Information and Requirements for Application For a Motor Vehicle Dealer License
• Montana Department of Justice: Dealer Inspection Form

Resources

• Montana Department of Justice: Montana Highway Patrol
• Montana Department of Justice: Dealer License Original and Renewal Application