How to Get a Georgia Used Car License

Published: May 27, 2021
 

georgia dealer license

 

Getting a Georgia used car license can be a lengthy task and can be quite complicated. However, the application process can be made fast, easy, and painless with the right guidance. In this guide, we’ll give you all the information you need to make your license application as easy as possible. 

What is a Georgia Used Car License? 

The State of Georgia requires that all vendors of used cars obtain a license in order to operate. In doing so, the state is able to ensure that these motor dealers are operating according to state and federal laws, as vendors will not be granted a license until they can demonstrate that they meet a range of legal criteria. 

There are two main types of Georgia Used Car Licenses. These are 

  • Used Motor Vehicle Dealer 
  • Used Motor Vehicle Parts dealer 

What are the Georgia Used Car License Requirements?

The requirements for applicants who want to obtain a Georgia Used Car License Application are set by the Board of Used Motor Vehicles. Each of these requirements is obligatory for applicants, so it is sensible to ensure that you can provide evidence of each of them before beginning the application process. The requirements are: 

Obtain a Business and Tax Registration 

In order to gain a Georgia Used Motor Vehicle Dealer License, your business must be a formally registered entity. There are several departments of government with whom you can register a business depending on the type of entity you wish to establish. If you have not already established your business as a formal entity, and don’t know which department to approach, then you can follow the Georgia Department of Revenue’s Quick Instructions for Registering a Business.   

You also need to provide evidence of your Sales Tax Number, and your Federal Employer Identification Number (FEIN). For more information on how to obtain these details, you can visit Georgia’s Department of Revenue Dealer Registration Website. 

Establish a Place of Business 

You must have an established place of business that meets several criteria. Firstly, your place of business must have, as well as a car lot, a salesroom, or office with a working landline telephone that is listed in your trade name. The place of business needs to have a permanent sign identifying it as a used car dealership, and you must have a Zoning Certificate, evidencing that the place of business complies with local zoning requirements. This can be obtained from your local zoning office. 

In order to verify that you meet these criteria, you should include photographs of the inside and outside of your business, as well as signage. 

It should be noted that your business will also need to pass an inspection which will be conducted as part of the application review process. 

Authorize a Fingerprint Background Check 

In order to be granted a Georgia Used Car License, you will need to authorize an electronic background check of your fingerprints. You can start this process online with the Georgia Applicant Processing Services. 

Attend a Pre-Licensing Seminar 

In order to ensure that you are up to date with the most recent rules, regulations and practices, applicants must attend a pre-licensing dealer training seminar with one of the Board Approved Education Providers. These providers are E-Learning, GIADA, and Ron Widener. 

Get a Surety Bond and Insurance 

Applicants must take out a Motor Vehicle Dealer Bond and Liability Insurance to act as financial guarantees of their adherence to regulation. The value and cost of these can vary depending on the scale at which you wish to operate, as well as your credit history. 

Once you have posted your Georgia Auto Dealer Bond, you must fill out the Bond Information Form, and include this in your application.

Your original certificate of insurance must also be included in your application. 

More details can be found in the “How Much does it Cost to Get a Georgia Used Car License” section of this article.  

How Much Does It Cost to Get a Georgia Used Car License? 

The total cost of the Georgia Used Car license can vary and is made up of several combined costs. These are detailed below. 

Licensing Fees 

The application fee for initial licensure is $170. You’ll have to pay the same amount for each additional business location you wish to operate. 

The renewal fee is $150 if you renew your license on or before March 31st of even-numbered years. Late renewal license fees cost $250. 

Surety Bonds

Surety Bonds act as a financial guarantee for customers, which guarantees that auto-dealers will perform within regulations laid out by the state. They guarantee that finances are immediately available to be levied in the event that damages need to be paid to the customer due to malpractice on the part of the dealer. 

Georgia state law requires used auto dealers to post a surety bond worth $35,000 for each licensed location. Whilst the value of the bond is $35,000, the price paid to post that bond is considerably less. 

The exact price, or the surety bond premium, will vary depending on your personal and business credit history.  For applicants with stable credit history, it usually falls between 3% and 5% of the bond amount. That means that Georgia Auto Dealer Bonds often cost between $1,050 and $1,750. Depending on your credit score, however, that rate can extend down to 1%, or up to 10%, creating a broader range between $350 and $3,500. 

For a more precise bond price, you can apply for a free quote now.

Insurance 

You will also have to obtain a certificate evidencing that you are appropriately insured. Used auto dealers are required to take out insurance with minimum limit amounts worth $50,000/ $100,000/ $125,000 or a single limit of $125,000.

You must also ensure that you have garage liability coverage. 

Apply for a Georgia Used Car License

Once you’ve collected all of the required paperwork and evidence, it is time to apply for your Georgia dealer license. In order to do so, you must fill out the Georgia Used Car Dealer License Application. 

Your application packet, which must include your application form, the required accompanying evidence, and your licensing fee in the form of a check must be sent to:

State Board of Registration of Used Motor Vehicle Dealers and Used Motor Vehicle Parts Dealers 

Used Motor Vehicle Dealers Division

237 Coliseum Drive

Macon, Georgia 31217 

 

If you have any questions prior to submission, you can contact the Georgia State Board of Registration of Used Motor Vehicle Dealers via their website. 

Once you have submitted your completed application to the licensing board, they will send representatives to conduct an inspection of your business. If your application and the inspection are deemed complete and satisfactory, you will be granted your Georgia Car Dealer License. 

Once your license has been granted, it can be verified online. Online verification is a useful tool that allows you to assure potential clients that your dealership operates according to the appropriate state regulations and is a reliable source of used cars. 

Renewing Your License

Your license will expire on March 31st of even-numbered years. This means that both your license and surety bond need to be renewed every two years. 

With this in mind, it is important to ensure that you have all of your necessary documentation organized well before March 31st, as applications submitted after this date are charged additional late fees. If you have any more questions about obtaining a Georgia auto dealer license, or you wish to learn more about bonding requirements, leave us a question in the comments, send us a message via the chatbot, or give us a call. Our phone number is 877.514.5146.

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Robin Kix

Robin Kix is currently the Renewal Department Manager. Since joining Lance Surety in 2014, she has helped thousands of businesses throughout the nation remain compliant at the federal, state and local level. She has significant experience supporting commercial bond lines, particularly in the automobile, transportation and construction industries. Robin and her team work together to create a positive customer service experience at the time of every policy renewal, whether that be finding the best pricing or offering additional assistance.

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