How to Get an Oklahoma Dealer License [Guide]
Oklahoma is one of the top states to run an auto dealership in the U.S., with some of the highest average sales volumes and lowest startup costs. If you’re thinking about launching your business there, your first step is to obtain an Oklahoma dealer license.
The process that you have to go through is set by state authorities and aims to check your suitability to work as a dealer. It entails meeting a number of requirements, which in most cases includes posting an auto dealer bond.
In the sections below, you can find the essential details about the licensing process, so that you can start your dealership in Oklahoma with ease.
1. Select the auto dealer license type
There are two authorities in the state that can issue your Oklahoma dealer license. The first one is the Used Motor Vehicle and Parts Commission (UMVPC), from which you can obtain the following license types:
- Used Motor Vehicle Dealer – used vehicles
- Wholesale Motor Vehicle Dealer – wholesale
The other licensing body is the state Motor Vehicle Commission (OMVC). It provides another Oklahoma auto dealer license type:
- New Vehicle Dealer – new automobiles, trucks, and buses
Determine which type of licenses you need based on the vehicles you want to sell and start you application with the respective authority.
2. Get to know the Oklahoma dealer license requirements
The criteria that you have to satisfy depend on the license type that you want to obtain.
For Oklahoma used car dealer license or wholesale license from the UMVPC, the requirements are the following:
- Personal history questionnaire
- Driver’s license from the state
- Current certificate of incorporation or LLC, or a current certificate of good standing
- Financial statement
- Photos of office, sales lot and business sign
- Attendance of required education program
- Salesperson registration form
- $25,000 single limit garage liability insurance
- $25,000 or $50,000 surety bond
For further information about the requirements of the UMVPC, you can consult its Rules and Regulations.
Applicants for a new car dealer license from the OMVC have to satisfy the following requirements:
- Business history of the company and of each owner or executive manager
- Company balance sheet or pro forma
- Affidavit of extended service contracts (for purchasing an existing dealership)
- Photos of showroom, front, outdoor sign, parts area, service area and exhaust system in service area
- Dealer agreements
- Salesperson registration form
You can learn more about the OMVC’s requirements from its Laws and Rules page.
3. Prepare your paperwork
Together with the requirements detailed in the previous section, you also have to obtain documents from other authorities:
- Current report from the state Bureau of Investigations (OSBI)
- Letter of permit from the city or county (for used car dealers only)
As for applicants with the OMVC, they have to fill in the new car dealer application form and prepare proof for all licensing criteria.
4. Obtain the necessary Oklahoma auto dealer bond
Posting an Oklahoma auto dealer bond is one of the indispensable requirements that you have to satisfy to get licensed. It is applicable for all license types provided by the UMVPC. The bond guarantees your legal compliance and thus protects your customers.
The bond amounts are the following:
- $25,000 for used car dealers, franchised used car dealers, and wholesale dealers
- $50,000 for used car dealer auctions
In order to get bonded, you need to pay a small fraction of the required amount. This is your premium, which depends on the strength of your personal and business finances. If they are in good standing, you can expect bond rates between 0.75% and 5%.
5. Apply for an Oklahoma dealer license with the full document set
Used car and wholesale dealers have to submit their application and paperwork to the UMVPC by mailing them to:
Used Motor Vehicle and Parts Commission
2401 NW 23rd St. Suite 57
Oklahoma City, OK 73107
The licensing fees are the following:
- $600 application fee for wholesale, used motor vehicle and used motor vehicle auction licenses
- $200 application fee for franchised used motor vehicle dealers and for a second location
- $25 application fee for salesperson registration (used dealers only)
The UMVPC meets on the second Tuesday of each month. You have to file your documents at least 11 days before that. After the Commission reviews your application, an inspector will visit your business location to approve it. If the inspection is successful, you will receive your license.
Applications for a new car dealer license have to be sent to:
Oklahoma Motor Vehicle Commission
4334 N.W. Expressway, Suite 183
Oklahoma City, OK 73116
The relevant fees are the following:
- $300 fee for a franchise dealership
- $100 annual renewal fee
- $25 fee for salesperson registration
The OMVC meets on the second Tuesday of each month. You have to submit your paperwork 8 days before it, at the latest. After its meeting, you will get an inspection of the property where your dealership is located. The license can be issued afterward if you satisfy all criteria.
6. Renew your Oklahoma dealer license
You have to renew your license before its expiration date, so that you continue your dealer operations.
Used car and wholesale dealer licenses expire on December 31st of each odd-numbered year. Thus, you have to renew them biennially.
The expiration date of new car dealer licenses is June 30th every year. You have to renew your license by June 1st, so that your new license starts as of July 1st.
Do you need more information about obtaining your Oklahoma car dealer license and bonding? Don’t hesitate to contact us at 877.514.5146.