The Complete New Hampshire Dealer License Guide [2020]

Published: Dec 5, 2019
New Hampshire Dealer License

 

Establishing a car dealership in New Hampshire is a promising business endeavor. If you’re looking to start your auto business in the state, you will need to get a New Hampshire dealer license. It is the obligatory prerequisite to running your operations in legal compliance.

In order to get licensed, you have to fulfill the state requirements. They ensure you are a suitable candidate for operating a dealership. One of the major criteria that you have to satisfy is to post an auto dealer bond. 

Interested in how the licensing process works? In the sections below, you can get acquainted with each step, so that you launch your business with ease. 

1. Choose the right auto dealer license type 

You need to get a NH car dealer license from the Division of Motor Vehicles at the state Department of Safety. There are different license types you can choose from that match the activity you want to conduct:  

  • Retail Vehicle Dealer – selling more than 5 vehicles to the general public per year
  • Wholesale Dealer – selling to other licensed motor vehicle dealers only (NH wholesale dealer license)
  • Motorcycle Dealer – selling more than 5 motorcycles per year
  • Utility Dealer – travel or camp trailers, utility trailers, boat trailers, semi-trailers, tractors, farm equipment, construction equipment, modular buildings and manufactured housing
  • Repair Dealer – repairing vehicles
  • Auto Recycling Dealer – remodeling, taking apart, or rebuilding used vehicles, and selling automotive parts
  • Transporter – transporting vehicles 

2. Get to know the New Hampshire dealer license requirements

The next step is to acquaint yourself with the DMV’s criteria for your license type. You need to meet the following requirements:

  • Information about owners, partners and members
  • Business entity information, including name, address and telephone
  • Location requirements (business hours, sign) 
  • Lease agreement (if applicable) 
  • Franchise agreement (for new vehicle dealers) 
  • Service location or service agreement (for auto recycling, motorcycle, retail and utility (over 3,000 lbs) dealers)
  • $25,000 surety bond (not necessary for repair dealers, transporters and utility (below 3,000 lbs) dealers)  

You can obtain more information from the New Hampshire Statutes, Chapter 261.

3. Prepare your paperwork

New Hampshire Dealer LicenseYou have to complete the DMV’s application duly. The forms for different license types are:

Besides proof of meeting the requirements listed in the previous section, you also have to supply the following documents:

  • Criminal background check from the Division of State Police
  • Business entity registration with the Secretary of State
  • Local town or city approval for occupancy 

4. Obtain the necessary New Hampshire auto dealer bond 

Posting a surety bond is one of the indispensable requirements for most NH auto dealer license types. Exempt are transporters, utility (below 3,000 lbs) and repair dealers.

The New Hampshire auto dealer bond amount is $25,000. In order to get bonded, you have to cover a small fraction of it. This is the bond premium. It is set on the basis of your personal and business finances. The stronger they are, the lower your cost would be. The typical rates for applicants with stable finances are between 0.75% and 5%

5. Apply with your full document set

Whenever you have compiled all the necessary paperwork, you have to mail your full application to:

New Hampshire Department of Safety
Division of Motor Vehicles
33 Hazen Drive
Concord, NH 03305

The licensing fee is $125. All applicants have to get an on-site inspection by the State police prior to the issuing of the license. 

After receiving approval for licensing, retail, motorcycle and utility (above 3,000 lbs) dealers have to take a dealer/title review class of state laws and rules. Their dealer plates are provided afterward. 

6. Renew your license annually

The licensing period for NH dealers ends on March 31st of each year. To continue your operations, you have to renew your license before the expiration date. 

 

Have more queries about getting your NH auto dealer license and bonding? Don’t hesitate to get in touch with us at 877.514.5146.

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Victor Lance is the founder and president of Lance Surety Bond Associates, Inc. He began his career as an officer in the U.S. Marine Corps, serving two combat tours. As president of Lance Surety, he now focuses on educating and assisting small businesses throughout the country with various license and bond requirements. Victor graduated from Villanova University with a degree in Business Administration and holds a Masters in Business Administration (MBA) from the University of Michigan's Ross School of Business.

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