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How to Get an Auto Dealer License in NEW YORK (NY)

We’ll show you everything you need to know about getting your used car dealer license in NY.

DISCOVER HOW TO...
Find a location
Incorporate your business
Apply even with Felony Convictions
and lots more..

Watch the Video!

 

Get Your Dealer License in New York

NOTE: If any links give you trouble, report them to me...lol.. Email me at [email protected]
Disclaimer: Need assistance call the office of vehicle safety application unit at 518-474-0919

Step 1: Location - Office & Display area

Your location must have an office and a display area for at least 3 vehicles. You can share space with other business but there must be a permanent division between businesses.

Check the requirements for each. In addition to the specs of the space, usually the space also needs:

  • Desk
  • Chair
  • Locking File Cabinet 
  • Telephone * (preferably a landline)
  • Sign (required for Retail, Tag & Title, may NOT use MVA logo or state seal)*
  • Lighting
  • Heat
  • Electricity (NO generator, must be hard-wired)

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 2: Bond - $20,000 for 50 vehicles

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 $20,000 

Step 3: Liability Insurance

You must maintain Garage liability insurance. 

Step 4: Incorporation & EIN 

It doesn't look to be required to incorporate. However, I strongly recommend it. 

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 5: Gather all these additional Documents

  • Criminal Background Check – All applicants/licensees must submit a Criminal Background Check. 
  • Identification
  • Application

Step 6: Schedule a Site Inspection

Dealers must have a site approved, by a Regional Office, for the dealership location. Once a location is found, contact your local Regional Office to schedule an appointment to have the site inspected. A Division of Motorist Services Compliance Examiner will inspect the location. It is recommended that you do not sign a lease until the site has been approved by the Department.

Step 7: Submit Your Application

Complete the application form found here .

Send your completed application to:

THE REGIONAL OFFICE RESPONSIBLE FOR YOUR DEALERSHIP

 

Step 8: Get a Mentor! 

Take the shortcut and get licensed faster!

The licensing process can cost you time and money without a winning strategy. Join Drama Free Licensing to get the help you need to get licensed without any setbacks.

Kendra

Kendra is an Auto Dealer in Georgia. She is a member of the Auto Dealer Business School.

Christian

Christian is an Auto Dealer in California. He is a member of the Auto Dealer Business School.

Ira

Ira is an Auto Dealer Apprentice in New Jersey. He is a member of the Auto Dealer Business School.

Dream Dealership Group

This group is dedicated to CEO practices for Auto Dealers and aspiring Auto Dealers. Get support with anything for your business from Licensing to Management!

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