How to Get an Oregon Dealer License
Ready to sell motor vehicles in Oregon?
Starting an auto dealership in the state means that you need to obtain an Oregon dealer license from the Oregon Department of Motor Vehicles, as well as an Oregon auto dealer bond. In this way, you can operate legally by complying with all relevant rules.
The licensing process involves a number of administrative steps that you need to go through. While the process does take time and efforts, it is certainly a manageable one, especially if you know all details in advance.
To help you out in launching your Oregon dealership, here are the main things to take care of for your licensing and bonding.
Finding the right Oregon dealer license type for your business
You can apply for two different types of dealer licenses with the Oregon DMV:
- Standard License
- Special License
The standard one is comprehensive and includes the right to operate as a dealer or a rebuilder of vehicles. The second one, called the special license, is needed in case you want to sell motorcycles, mopeds, snowmobiles and ATV vehicles.
Depending on the needed type of license, there are two different application forms that you have to select from. You need Form 735-370 in case you need the standard license, or Form 735-366 for the special license.
Get to know all Oregon dealer license requirements
The requirements for obtaining your Oregon dealer license are set by the Oregon Revised Statute 822.005 and 822.015.
Together with your completed application form, you need to submit the following documents to the Oregon DMV:
- Proof of business entity and name
- Business location documents – approvals
- Dealer history of the main applicant
- $40,000 auto dealer bond for standard licenses and $2,000 bond for special licenses
- Liability insurance certificate
- Education certificate from a DMV-approved provider
- Payment of relevant fees
The three-year license fee is $1,187 and includes one plate. Every additional plate costs $54. Licensing a second location means you need to pay an additional $350 fee.
Get an Oregon auto dealer bond
As described earlier, one of the major requirements that you need to meet to get your Oregon dealer license is to post an auto dealer bond. For most dealers, this means obtaining a $40,000 Oregon Auto Dealer Bond.
Keep in mind that bonds are different from an insurance. The auto dealer bond is an extra layer of protection for your customers and the state that guarantees your dealership will follow applicable rules.
To get bonded, you need to pay a fraction of the bond amount, called the bond premium. This is your surety bond price. The typical percentages are in the range of 1%-3% of the required amount (in case of good credit score).
How is your bond cost formulated? When you apply for a bond, your surety will examine your personal and business financials. These could include your credit score, business financials, professional experience, as well as assets and liquidity. On the basis of these factors, it will determine the level of risk that the bonding company would take on. If you can demonstrate a low level of risk, you can expect a lower bond price.
If you would like to know how much you need to pay for your Oregon auto dealer bond, you can apply for your free (no obligations) quote by completing the online surety bond application here.
For any questions you might have, call us at 877.514.5146 to speak to our auto dealer bond experts and to find all the information you need for your dealer bond.