A North Carolina dealer license is not complicated, but it is detailed: ten steps, from the course to the DMV's License and Theft Bureau. Here they are in order.
At a glance
| Issued by | NCDMV License and Theft Bureau |
|---|---|
| Surety bond | $50,000 for one sales room, $25,000 for each additional |
| Course | 12 hours within 12 months before licensing; 6 hours for renewals |
| License fee | $115.50 dealer, wholesale or distributor certificate |
10 steps to your license
1. Choose the license type
- New motor vehicle: new and used vehicles
- Used motor vehicle: used vehicles only
- Wholesaler: used vehicles sold to dealerships
2. Take the pre-licensing course
Used vehicle dealers complete a 12-hour course no more than 12 months before licensing and submit the original certificate; the Carolinas Independent Auto Dealers Association offers one. Renewals need only a 6-hour course.
3. Secure a business location
- A retail sales room of at least 96 square feet, not attached to a home or another business
- A sign with the business name in letters at least 3 inches tall
- All books, files and records kept there
4. Get liability insurance
Provide a policy number that covers the dealer plates, or a certificate of garage insurance.
5. Get a surety bond
A corporate surety bond or cash bond of $50,000 for one sales room, plus $25,000 for each additional one.
6. File the business name
Show that an assumed name was filed with the Register of Deeds in your county, unless the business uses the same name as on the license.
7. Form the business
File the papers for an LLC, LLP, corporation or other form. A corporation also needs a trader's license from the county, the first page of its charter from the Secretary of State, and a disclosure of any owner's stolen vehicle offenses. You also apply for each sales representative you hire.
8. Arrange the site inspection
Contact the License and Theft Bureau office for your area; DMV form LT-415 lists the local inspectors, who check the premises against the safety and security rules.
9. Get background screening
Use the state-approved S2Verify service. The check must be less than 90 days old when you apply.
10. Submit the application
Include the inspection record, form LT-400, the first page of the corporate charter (corporations), the liability policy number, the Register of Deeds filing, the course certificate and the background screening link. The fees:
- Dealer, wholesale or distributor license certificate: $115.50
- Factory branch license certificate: $167.25
- Manufacturer license certificate: $250.50
- Sales or factory representative: $25.50
- First five dealer plates: $46.25 each; each additional plate $23.25
- Dealer transporter plate: $23.25 each
- Temporary markers: $25 per set of 25
Mail it to North Carolina Department of Transportation, Division of Motor Vehicles, License and Theft Bureau Dealer Unit, 3129 Mail Service Center, Raleigh, NC 27699.
Before you apply
Requirements, fees and bond amounts change. Confirm the current rules with the North Carolina DMV License and Theft Bureau before you file. This guide is general information, not legal advice; for questions about your situation, talk to a lawyer.
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