The Full Alaska Dealer License Guide (2021)
If you want to run a car dealership in Alaska, you have to undergo a list of administrative procedures. Most importantly, you will need to obtain an Alaska dealer license. The license is necessary for anyone that wants sell more than 5 vehicles in a 12 months span in the state.
The licensing process includes meeting a range of requirements. Their purpose is to guarantee you are a suitable candidate. Posting an auto dealer bond is one of the essential criteria.
Delve in the sections below to find out the details about starting your Alaska dealership.
1. Find out the right auto dealer license type
In Alaska, the authority that licenses auto dealers is the Division of Motor Vehicles (DMV) at the Department of Administration. It issues two types of licenses:
- Motor Vehicle Dealer – selling all types of vehicles, including used, new, wholesale, motorcycles and boats
- Buyer’s Agent – negotiating for vehicle buyers
2. Get to know the Alaska dealer license requirements
The procedure for obtaining your Alaska auto dealer license is straightforward. You have to fulfill the criteria set by the DMV, which are:
- Personal information about owners
- Business entity information
- Proof of ownership or lease of your business location
- Business location requirements – permanent building, office with records keeping space, and business sign
- Photo of the business location
- Photos of each owner, partner, corporate officer, or member
- Surety bond
3. Prepare your documents
In order to start your licensing process, you need to fill in the form Application for Dealer License. Note that you have to notarize your signature.
Together with the form, you have to get ready all of the paperwork listed in the previous section.
You will also have to get additional documents from other authorities:
- Business license registration from the state Division of Corporations, Department of Commerce
- Employer Identification Number (EIN) from the IRS (if applicable)
- Zoning ordinance compliance from your local authorities
4. Obtain the necessary Alaska auto dealer bond
All applicants for a dealer license, except those selling boats, have to obtain a surety bond. It is a safety net that protects the interests of the state and your customers.
The amounts of the Alaska auto dealer bond are the following:
- $50,000 for motor vehicle dealers
- $25,000 for motorcycle dealers
To get bonded, you need to pay a premium. It constitutes a percentage of the required bond amount. The rates for applicants with stable finances are in the range of 0.75% and 5%. Your exact premium depends on factors like your personal credit score, business finances, and fixed and liquid assets. The stronger they are, the lower the cost would be.
5. Apply with your full document set
Whenever you have compiled all the paperwork, you have to send it via mail to:
Division of Motor Vehicles
1300 W Benson Boulevard STE 300
Anchorage, AK 99503-3691
In order to obtain dealer plates, you also have to fill in and submit the Application for Dealer Plates.
The registration fee that you have to cover is $50.
The DMV usually takes 10 days to process the dealer license applications. If approved, the license is ready within 4 to 6 week. Once you receive your certificate, you have to place it in a visible spot in your business location.
6. Renew your Alaska dealer license
The licensing period is two years. If you want to continue your operations afterwards, you have to go through the Alaska dealer license renewal process.
You need to submit the renewal application form before October 31st of the year of expiry. The license has to be renewed as of January 1st of the following year, so that you can remain legally compliant.
Do you have any further questions about getting your Alaska dealer license and bonding? You can reach us at 877.514.5146.
Latest posts by Victor J. Lance, President/Owner (see all)
- How to Get a Texas Dealer License - March 30, 2021
- How to Get a California Money Transmitter License [2021 Guide] - March 26, 2021
- 🚚 How to Become a Freight Broker in 2021: Your Ultimate Guide - March 26, 2021