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NORTH CAROLINA AUTO DEALER LICENSE: STEP-BY-STEP GUIDE
STEPS
1. ATTEND A PRE-LICENSING COURSE (USED MOTOR VEHICLE DEALERS ONLY)
If you’re applying to sell used cars: Proof you completed a dealer education course. You must submit the Original Certificate with the application.
You must complete the course at some point during the 12 months leading up to your application.Courses for new applicants last 12 hours; when you renew your dealer license, you’ll need to complete a renewal course that lasts 6 hours.
2. OBTAIN A PERMANENT BUSINESS LOCATION
(NO Display Lot is Required in NC-But must have Proper Zoning Approval to sell Cars from that Location )
Have an “established salesroom” (Retail) containing at least 96 square feet of floor space in a permanent, enclosed building, or separate and apart from any living quarters, residence, or other business and having a separate entrance.*
Displays, or is located immediately adjacent to, a sign having block letters not less than three inches in height on contrasting background, clearly and distinctly designating the trade name of the business.
Is a place at which a permanent business of bartering, trading, and selling motor vehicles will be carried on in good faith on an ongoing basis whereby the dealer can be contacted by the public at reasonable times.
Is a place where the books, records, and files required by the Division under this Article are kept.
The term includes the area contiguous to or located within 500 feet of the premises on which the salesroom is located. The term does not include a tent, a temporary stand, or other temporary quarters. The minimum area requirement does not apply to any place of business lawfully in existence and duly licensed on or before January 1, 1978.
SPECIAL NOTE FOR WHOLESALER: *Have an “established office” (Wholesaler) containing at least 96 square feet of floor space in a permanent, enclosed building or structure which is accessible to Division personnel and is a place where books, records and files are required to be kept.
Once you have your salesroom squared away, call the License and Theft Bureau office that’s local to your dealership to schedule an inspection. Reference the North Carolina Motor Vehicle Minimum Dealer License Requirements (Form LT-415) for a list of local inspectors and phone numbers.
3. OBTAIN PROOF OF LIABILITY INSURANCE
The policy number for the required comprehensive liability insurance to cover your dealer license plates.
Have a comprehensive liability insurance company policy or Garage Coverage Form-Automobile Dealer Supplementary Schedule policy number or binder number from the insurance company to cover dealer plates.
4. OBTAIN YOUR AUTO DEALER SURETY BOND & POA
Must furnish a corporate surety bond or a cash bond in the amount of fifty thousand dollars ($50,000) for one established salesroom and twenty-five thousand dollars ($25,000) for each established salesroom
(note- The bond will not be accepted if any information is incorrect or if it has been altered)
5. COMPLIANCE WITH COUNTY REGISTER OF DEEDS FOR ASSUMED NAMES & TRADERS LICENSE
A. Evidence you filed an assumed name with the Register of Deeds in the county your business is located IF you’re operating under any name other than what will appear on the dealer license certificate.
*The Division must have evidence of an assumed name being filed with the Register of Deeds in the county in North Carolina where the business is maintained when such business is operated under any designation, name or style other than the real name of the owner or owners thereof or under its corporate name. After this filing, when there is a change of name and/or ownership, such must be filed with the Register of Deeds and evidence of this change being filed furnished to the Division of Motor Vehicles.
* A foreign corporation must procure a certificate of authority from the North Carolina Secretary of State before being licensed to operate in this State under the Dealers and Manufacturers Licensing Law and written proof of same provided to the Division
6. FILE ARTICLES OF AUTHORIZATION FOR LLC, LLP, INC., ETC.
If your business is a corporation, the 1st page of the corporate charter your received from the North Carolina Secretary of State after filing Articles of Incorporation.
*Before a North Carolina corporation can be licensed under the Dealer and Manufacturers Licensing Law, articles of incorporation must have been filed with the North Carolina Secretary of State and written proof of same provided to the Division.
ADDITIONALLY, you’ll need to buy a “Trader’s” license from the business licensing agency in the city or county your dealership will be in, though, you don’t need to submit it with your dealer application.
DISCLOSURE OF PRIOR CONVICTION: Any officer of a corporation, partner or owner of a business who has been convicted of an offense of receiving or transferring stolen vehicles (NCGS 20-106), fraud in connection with rental vehicles (NCGS 20-106.1), injuring or tampering with vehicles (NCGS 20-107), or making false affidavit-perjury (NCGS 20-112) within five years next preceding the date of filing the application for license; or having been convicted in the past of a felony involving moral turpitude under the laws of this State, another State or the United States, will not be eligible for a dealer’s license.
Applicant understand that you must endorse the application for each sales representative employed by you and that you are responsible for the acts of all sales representatives employed by you while acting as your agent?
Sales Representative applications (LT-426) attached -Cost of each application is $20
7. ARRANGE & OBTAIN INSPECTION OF BUSINESS LOCATION
Please contact an Inspector in the County you plan to open your Dealership. Call between 8:00 & 10:00am Monday through Friday.
District I- Greenville (252) 752-4435
District II Fayetteville (910) 486-1331
District III Raleigh (919) 816-9194
District IV Greensboro (336) 256-2024
District V Winston-Salem (336) 767-8808
District VI Huntersville (704) 331-4500
District VII Asheville (828) 782-9640
8. BACKGROUND SCREENING ON STATE APPROVED SITE S2VERIFY
Link For NC Background Screening Required With Dealer Application Submission
Background verification must be done within 90 days of the date the application is submitted and received by the state. If the background check is older than 90 days at the time the application is submitted, then it will not be accepted
9. SUBMIT YOUR DEALER APPLICATION WITH RECORD OF INSPECTION (TO INCLUDE)
A completed Application for New Dealer License or Changes to Existing License (Form LT-400)
The policy number for the required comprehensive liability insurance to cover your dealer license plates (minimum of $100,000 Garage Liability Policy)
Evidence you filed an assumed name with the Register of Deeds in the county your business is located (If you’re operating under any name other than what will appear on the dealer license certificate)
ADDITIONALLY, you’ll need to buy a “Trader’s” license from the business licensing agency in the city or county your dealership will be in, though, you don’t need to submit it with your dealer application.g.
Link For NC Background Screening Required With Dealer Application Submission
Payment for the applicable fees:Dealer license: $90, Dealer plates: $36 per plate for the initial 5 plates, and $18 per plate after that.
( Depending where your dealership’s located, you may need to pay additional fees and taxes for your dealer plates; refer to the North Carolina Motor Vehicle Minimum Dealer License Requirements (Form LT-415) for details)
ONCE YOU’VE COMPLETED EACH REQUIREMENT AND HAVE THE DOCUMENTS TO ATTACH TO YOUR COMPLETED APPLICATION, MAIL EVERYTHING TO:
North Carolina Department of Transportation
Division of Motor Vehicles
License and Theft Bureau Dealer Unit
3129 Mail Service Center
Raleigh, NC 27699
**North Carolina Dealers License are valid for one year. They must be renewed annually.