How To Get A North Carolina Dealer License:
A Step by Step Guide
Before You Begin:
Determine Which Type of License You Need
- New Motor Vehicle Dealer License: Allows you to sell new and used vehicles.
- Used Motor vehicle Dealer: Allows you to sell only used vehicles.
- Wholesaler License: Allows you to distribute/sell used vehicles to car dealers.
- Distributor License: Allows you to distribute/sell new vehicles to new car dealers.
- Manufacturer License: Required for those that assemble/manufacture vehicles or import new motor vehicles through a distributor with the intent to further distribute.
Step 1: Attend a Pre-Licensing Course
Step 2: Obtain a Business Location
- Have an "established salesroom" 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.
- Obtain a local zoning letter of approval for dealership business at the location
Step 3: Determine Company Structure and Register with the State, municipailty, and county
A Trader's License from the municipality and county must be obtained before filing your application as well.
Step 4: Surety Bond
ALL AMERICAN BONDS AND INSURANCE
First established location — $50,000 bond
Step 5: Garage Liability Insurance
Step 6: Arrange for a Business Location Inspection
Inspections can be arranged HERE.
Step 7: Obtain Federal Employee Identification Number (FEIN)
This is done on www.irs.gov
Step 8: Compile All Documents and Visit NCDOT Connect
Once you have all the steps above completed visit the link below for NCDOT dealership resources.
https://connect.ncdot.gov/business/DMV/Pages/Car-Dealers.aspx
Step 9: Prepare Fees
Dealer/Wholesale/Distributor License– $115.50
Factory Branch License Certificate – $167.25
Manufacture License Certificate - $250.50
Sales/Factory Representative – $25.50
Dealer plates (first 5 plates) - 46.25 each
Each Dealer Plate after 5 - 23.25 each
Dealer Transporter Plate - $23.25 each
Temporary Markers - $25 per set of 25
Additional fees per plate issued will be due in counties that require Regional Transit Authority (RTA)* Tax. It is $1.00 for Randolph County and $15.00 for Wake, Orange and Durham Counties.
Step 10: Submit your Application
- LT-400 (Notarized) (Dealer License Application)
- LT-409 (Notarized) (Bond) (Step 4)
- LT-426 (Notarized) (Sales Rep Application)
- 12 Hour Continuing education certificate dated within the past 12 months (Step 1)
- Zoning approval letter (Step 2)
- Garage liability insurance certificate or declaration page (Step 5)
- If Corporation/LLC, copies of your meeting minutes and Secretary of State filing (Step 3)
- If Franchise, copy of franchise agreement(s)
- If out of State Manufacturer or Distributor, certificate of Authority
- Out of State Manufacturer must also provide proof of registration with The National Highway Traffic Safety Administration (NHTSA)