Get Your Dealer License in North Carolina

Step 1: Pre-licensing Course 

Before applying for your used motor vehicle dealer license, you must complete a 12-hour licensing course approved by the DMV. Information on approved courses can be found by clicking on this highlighted text.

Step 2: Location - (need 1st and last month usually)

Your location must have the following requirements:

• An established salesroom (requirments in link) with at least 96 sq ft of floor space (excluding wholesalers)
• For wholesalers only: An established office (requirements in link) with at least 96 sq ft of floor space
• A sign that has letters of at least three inches in height

Note: Be sure the location is in compliance with all state, county and municipal zoning regulations and ordinances before signing the lease agreement.

To find a location, resources include the commercial real estate section on Craigslist, real estate agents experienced in commercial property & zoning and other auto dealers. Here is how you find out where other dealers have leased space.

Step 1: Search cars for sale on Craigslist by dealers.

Step 2: Take the phone number from the Craigslist listing and search it on the internet.

Step 3: Take the address of the dealer and search to find the office complex or warehouse that allows auto dealers.

Step 4: Last step is to contact the landlord for any vacancies.

Step 3: Bond - $50,000

I describe a Bond as an insurance policy for your customers. You only pay a percentage of the Bond amount. That percentage is based on your credit score with the most favorable rates for those with 680 score or higher in my experience. 

The bond requirement is $50,000 for the 1st established showroom and $25,000 for each additional.

Step 4: Liability Insurance

You must maintain Garage liability insurance. The details were not immediately clear. Ask at the dealer training. The application needs the following:

• Policy number
• The Provider

Step 5: Incorporation & EIN 

To apply for your Employer Identification Number (EIN), visit the IRS website. It's FREE to apply.

 You may need these numbers: NAICS Code for Used Car Dealers 441120 and SIC Code 5521.

Step 6: Schedule Business Inspection

All dealer locations must be inspected and approved by an agent of the License and Theft Bureau before your application is submitted. Ask for details at the dealer training.

Step 7: Submit Your Application

Fill out the application form and pay the fees:

• $90.00 for each place of business
• $36.00 per plate for the first five plates
• $18.00 per plate for additional plates
• $18.00 per dealer transporter plate
• $25.00 for 25 temporary markers

Send your completed application to:

North Carolina Department of Transportation
Division of Motor Vehicles
License and Theft Bureau
Raleigh, NC 27697-0001

Step 8: Get a Mentor! The learning curve is 2 years. Take the shortcut and be profitable faster.

You can have knowledge and experience at your side to give you that 20/20 hindsight vision. Go to the Auto Dealer Business School to learn how you can level up with a mentor.

NOTE: If any links give you trouble, report them to me...lol.. Email me at [email protected]