Opening a dealership can be a strong and successful business plan—but there are some steps you’ll need to follow to ensure you’ve dotted your I’s and crossed your T’s Getting a dealer’s license is an essential first step. If you’re in North Carolina, this process is not overly complex, but it is detailed. In this article, we’ll outline the steps you need to follow to obtain your license and start building your business.
In the state of North Carolina, there are three different license types, so the first step is figuring out which one matches your plans:
If you’re looking to sell used cars, you first have to complete the proper dealer course and submit your original certificate as proof. The course is only 12 hours, and you must complete it no more than 12 months before getting your license. We recommend taking it with the Carolinas Independent Auto Dealers Association. Once you’re licensed, renewing is much easier, and you’ll only need to take a 6-hour course in subsequent instances.
Your business location has to have several features, including:
You’ll need to be able to provide your policy number with a plan that covers your dealer plates.
Secure a corporate surety bond or a cash bond worth $50,000 for the sales room.
Provide proof that you filed an assumed name with the Register of Deeds in your business county, unless you are operating under the same name that will be on your dealer’s license.
File the articles of authorization for your relevant business type, whether it’s an LLC, LLP, corporation, etc. If your business is a corporation, you will need to follow some additional steps. First, you’ll need a trader’s license, which you can obtain from the business licensing agency in the county where your dealership will be located. You’ll also need the first page of the corporate charter from the NC Secretary of the State and to disclose if any of the business owners have a history of any stolen vehicle offenses.
As an owner of a dealership, you will then be responsible for the sales representatives you hire and have to pay a fee for each representative’s application. The fee is $20, and you act as their endorsement.
Get in touch with the License and Theft Bureau office in your town or county to schedule an inspection of your physical location. You can find a list of inspectors local to you by checking the North Carolina DMV form LT-415. The inspector will review the premises to ensure you pass all safety and security requirements.
Use the North Carolina state-approved website S2Verify to get a background check. This has to be completed within 90 days of your application submission—anything older than 90 days will be rejected, and you’ll need to re-submit.
After completing the above steps, it’s finally time to hand in your dealership application. To review, make sure you include all of the essential items, and feel free to reference this checklist:
Record of inspection for your business location
Your application package must also include the required fees:
You can mail all of your documents to:
North Carolina Department of Transportation
Division of Motor Vehicles
License and Theft Bureau Dealer Unit
3129 Mail Service Center
Raleigh, NC 27699
This is not intended as legal advice. If you have questions about dealer licensing requirements, please seek the assistance of legal counsel.
Once you’ve obtained your dealer license, ACV Auctions can help you source used car inventory in North Carolina. We are an online auction, which means we have inventory from all over, so once you are registered, sign up with ACV. There are no membership fees, and our transparent vehicle condition reports give dealers everything they need to know to bid confidently on inventory.
