Side Hustle: Start A Car Dealership From Scratch!
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Step #1.
https://www.dmv.org/
Step #2.
Dealer Licensing in Georgia
In Georgia, applying for a car dealer license will differ depending on the type of license you’d like to have:
Do You Need a GA Dealer License?
You DO need a car dealer license if you’re selling OR attempting to sell vehicles with the intent to make a profit, regardless of how many cars you’ve sold.
However, you DO NOT need a dealer license to sell your own personal vehicle titled in your name.
GA Independent (Used Car) Dealer License
Eligibility Requirements
BEFORE submitting an application for a GA independent dealer license, you’ll need to:
Apply for Your Dealer License
Your Georgia independent dealer license application should include:
Georgia Secretary of State
Professional Licensing Boards Division
237 Coliseum Dr.
Macon, GA 31217
Allow at least 30 days to receive your license. You can check your license status using the Georgia Secretary of State’s online lookup/verification service.
GA independent dealer licenses expire every 2 years on March 31 of even-numbered years.
Submitting a dealer license application is a complex process—call the Professional Licensing Boards Division at (478) 207-2440 with any additional questions.
NOTE: After getting your license, you must also register your dealership with the Business Registration Unit. See GA Car Dealer Registration below for more.
Independent Dealer License Renewals
You need to renew your Georgia dealer license every 2 years ON OR BEFORE March 31 of even-numbered years. The renewal fees are:
Then, you can submit a renewal request AND the $150 renewal fee using the GA SOS’ online services portal for current license holders.
Franchise (New Car) GA Dealer License
Generally, franchise dealers (or “new car dealers”) are licensed through the vehicle manufacturers they work with, NOT through a Georgia state agency. Contact the manufacturers of the motor vehicles you plan to sell to begin your franchise agreement.
However, as a franchise dealer you must still register your dealership with the Business Registration Unit—see our section on GA Car Dealer Registration below.
Georgia Car Dealer Registration
Both independent (“used”) AND franchise (“new”) car dealers must register with Georgia’s Business Registration Unit.
The process involves completing applications, providing a variety of proofs (such as your business license, sales tax certificate, and established place of business), and paying applicable fees.
The DOR provides dealer registration instructions AND a helpful Dealer Registration Checklist to make registering your dealership as easy as possible.
If you have additional questions about this process, contact the Business Registration Unit for assistance.
Step #3.
Dealer Forms in Georgia
Georgia provides a wide array of forms online for current and potential car dealers. Using Adobe's free Reader software, you may print out the forms and submit them to the appropriate office, according to the addresses stated on each form.
A few of the forms you might need include:
Forms
T-8
Limited Power of Attorney - Motor Vehicle Transactions
Submit this form to allow someone else to act on your behalf when buying OR selling a vehicle in Georgia.
Get Form
MV-47
Dealer Internet Inquiry Registration Form
If you're a vehicle dealer, use this form to register to use the MVD's Internet Service.
Get Form
Step #4.
Surety Bonds
Surety Bonds for Vehicle Dealers
Auto dealers in most states must file a surety bond with the state's Department of Motor Vehicles (DMV) before they can receive their auto dealer license. Unfortunately, purchasing an auto dealer bond can be one of the most confusing parts of getting a dealer license. That's why we developed the following comprehensive guide to auto dealer bonding.
Surety bonds are designed to protect customers and the state from auto dealers that commit fraud. A surety bond will help ensure that your dealership will follow the car dealership legislation and regulations in your state.
On this page you'll find a general overview of dealership surety bonds. For specific information about what type of surety bond you'll need and what documents you'll need to submit to satisfy the surety bond requirement of your dealership licensing process, please contact the appropriate motor vehicle agency in your state.
General Surety Bond Requirements
As with other surety bond types, auto dealer bonds provide financial guarantees that help regulate the industry. Auto dealer bonds protect customers, sellers, financial enterprises, and/or government agencies. If a dealer commits fraud or conducts business in other unethical ways, the bond helps these entities recover from any resulting financial loss.
Additionally, having a surety bond gives your dealership credibility to both your customers and the appropriate agencies in your state.
Depending on where you work and what kind of dealership you plan to operate, you might need to file one of many different auto dealer bond types. Some common ones include:
Vehicle Dealership Surety Bonds in Every State
The state agency that is in charge of licensing auto dealers should tell you if you need a bond before you begin the application process. If you haven't been told that you need a bond, it's a good idea to contact the agency and make sure you don't need one. You might also take the time to learn more about the dealer licensing process in your state.
Generally, obtaining and filing a surety bond is a normal part of the dealer licensing process in every state.
Cost of a Surety Bond for Your Dealership
The exact price you'll pay for a surety bond will vary for a few reasons, such as:
https://www.dmv.org/
Step #2.
Dealer Licensing in Georgia
In Georgia, applying for a car dealer license will differ depending on the type of license you’d like to have:
- Independent dealer—Also known as a used car dealer, applies for a license with the Georgia Secretary of State (SOS) AND registers their business with the Department of Revenue (DOR).
- Franchise dealer—Also known as a new car dealer, sets up their dealer license with the car manufacturer supplying their business AND also applies for business registration with the GA DOR.
Do You Need a GA Dealer License?
You DO need a car dealer license if you’re selling OR attempting to sell vehicles with the intent to make a profit, regardless of how many cars you’ve sold.
However, you DO NOT need a dealer license to sell your own personal vehicle titled in your name.
GA Independent (Used Car) Dealer License
Eligibility Requirements
BEFORE submitting an application for a GA independent dealer license, you’ll need to:
- Complete a used car dealer training course—the Georgia SOS provides a list of approved education providers.
- Already have an established a place of business, which includes a sales room/office to which any of the following apply:
- Is in a building.
- Is on the lot of a used car dealership.
- In which trading, selling, or buying are conducted on a permanent basis.
- In which business files/books/records are kept.
- Set up a landline telephone specifically for your business.
- Put up a permanent sign advertising your business as a used car dealership.
Apply for Your Dealer License
Your Georgia independent dealer license application should include:
- A completed Used Motor Vehicle Dealers License Application (REV 2018).
- The $170 application fee.
- Make checks payable to the Used Motor Vehicle Dealer Board.
- A copy of a “secure and verifiable” document to prove your age and citizenship.
- The original $35,000 surety bond with attached Power of Attorney.
- An original certificate of garage liability insurance on an Acord Form—your insurance company provides this.
- Your sales tax number OR a copy of your sales tax application.
- Photographs of your building’s:
- Interior.
- Exterior.
- Signage.
- The zoning compliance certificate, to be completed by the county zoning commissioner.
- The application packet includes the required zoning paperwork.
- Proof of attending pre-licensing used car dealer training.
- Your fingerprint scan required for the criminal background check.
- See the application for instructions on scanning and registering your fingerprint at an approved service site.
Georgia Secretary of State
Professional Licensing Boards Division
237 Coliseum Dr.
Macon, GA 31217
Allow at least 30 days to receive your license. You can check your license status using the Georgia Secretary of State’s online lookup/verification service.
GA independent dealer licenses expire every 2 years on March 31 of even-numbered years.
Submitting a dealer license application is a complex process—call the Professional Licensing Boards Division at (478) 207-2440 with any additional questions.
NOTE: After getting your license, you must also register your dealership with the Business Registration Unit. See GA Car Dealer Registration below for more.
Independent Dealer License Renewals
You need to renew your Georgia dealer license every 2 years ON OR BEFORE March 31 of even-numbered years. The renewal fees are:
- Standard renewal: $150.
- Late renewal: $250.
Then, you can submit a renewal request AND the $150 renewal fee using the GA SOS’ online services portal for current license holders.
Franchise (New Car) GA Dealer License
Generally, franchise dealers (or “new car dealers”) are licensed through the vehicle manufacturers they work with, NOT through a Georgia state agency. Contact the manufacturers of the motor vehicles you plan to sell to begin your franchise agreement.
However, as a franchise dealer you must still register your dealership with the Business Registration Unit—see our section on GA Car Dealer Registration below.
Georgia Car Dealer Registration
Both independent (“used”) AND franchise (“new”) car dealers must register with Georgia’s Business Registration Unit.
The process involves completing applications, providing a variety of proofs (such as your business license, sales tax certificate, and established place of business), and paying applicable fees.
The DOR provides dealer registration instructions AND a helpful Dealer Registration Checklist to make registering your dealership as easy as possible.
If you have additional questions about this process, contact the Business Registration Unit for assistance.
Step #3.
Dealer Forms in Georgia
Georgia provides a wide array of forms online for current and potential car dealers. Using Adobe's free Reader software, you may print out the forms and submit them to the appropriate office, according to the addresses stated on each form.
A few of the forms you might need include:
- The Used Car Dealer Application Packet is issued by the Georgia Secretary of State (SOS). This packet includes the information and forms you need to get started as a used-car dealer.
- Dealer, Distributor, Manufacturer, and Transporter Tag Application (Form MV-6): This form allows dealers, distributors, manufacturers, and transporters of vehicles to apply for dealer license plates so the vehicles may be driven before they are sold.
- Limited Power of Attorney/Motor Vehicle Transactions (Form T-8): This is a modified form specifically for motor vehicle transactions.
- The Dealer Internet Inquiry Registration Form (Form MV-47) allows dealers to access the motor vehicle records database.
- A Application for Temporary Site Permit will be needed if you choose to have a "tent" sale at a location other than your primary place of business.
- The State of Georgia Bond is a required element of your application process. Most surety bonds can be purchased through an insurance agent.
Forms
T-8
Limited Power of Attorney - Motor Vehicle Transactions
Submit this form to allow someone else to act on your behalf when buying OR selling a vehicle in Georgia.
Get Form
MV-47
Dealer Internet Inquiry Registration Form
If you're a vehicle dealer, use this form to register to use the MVD's Internet Service.
Get Form
Step #4.
Surety Bonds
Surety Bonds for Vehicle Dealers
Auto dealers in most states must file a surety bond with the state's Department of Motor Vehicles (DMV) before they can receive their auto dealer license. Unfortunately, purchasing an auto dealer bond can be one of the most confusing parts of getting a dealer license. That's why we developed the following comprehensive guide to auto dealer bonding.
Surety bonds are designed to protect customers and the state from auto dealers that commit fraud. A surety bond will help ensure that your dealership will follow the car dealership legislation and regulations in your state.
On this page you'll find a general overview of dealership surety bonds. For specific information about what type of surety bond you'll need and what documents you'll need to submit to satisfy the surety bond requirement of your dealership licensing process, please contact the appropriate motor vehicle agency in your state.
General Surety Bond Requirements
As with other surety bond types, auto dealer bonds provide financial guarantees that help regulate the industry. Auto dealer bonds protect customers, sellers, financial enterprises, and/or government agencies. If a dealer commits fraud or conducts business in other unethical ways, the bond helps these entities recover from any resulting financial loss.
Additionally, having a surety bond gives your dealership credibility to both your customers and the appropriate agencies in your state.
Depending on where you work and what kind of dealership you plan to operate, you might need to file one of many different auto dealer bond types. Some common ones include:
- DMV bonds.
- RV bonds.
- Motorcycle dealer bonds.
- Used car dealer bonds.
- Wholesale car dealer bonds.
Vehicle Dealership Surety Bonds in Every State
The state agency that is in charge of licensing auto dealers should tell you if you need a bond before you begin the application process. If you haven't been told that you need a bond, it's a good idea to contact the agency and make sure you don't need one. You might also take the time to learn more about the dealer licensing process in your state.
Generally, obtaining and filing a surety bond is a normal part of the dealer licensing process in every state.
Cost of a Surety Bond for Your Dealership
The exact price you'll pay for a surety bond will vary for a few reasons, such as:
- The required surety bond amount.
- Your application and financial credentials.
- If you choose to finance your bond premium.
- Your credit score.
is this really worth the coming headaches.... or is this a get in....make ur loot....and get out plan ???
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for my own personal advantage...... selling cars to friends or family. small circle / word of mouth. Its a nice hustle & very good way to save a ton on a car.is this really worth the coming headaches.... or is this a get in....make ur loot....and get out plan ???
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but that's keeping the circle tight.... and still has it's disadvantages...…. friends and family ain't a good business model.... I know....sold a nephew a truck I had when I brught a newer one...… came down from the $1500 I was looking for..... cause he was family..... he gave me $150..... and was going to give me the rest..... he ghosted me.
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Is any business wort the headache? Um..yes. It beats waiting for an annual review and 3% raise.is this really worth the coming headaches.... or is this a get in....make ur loot....and get out plan ???
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Lol, you will never grow with that business plan.
some businesses accrue waaay more headaches than others..... fucking with selling used cars being one.
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Stop it, you’re in your mid 40s with no children and still live with family members.. keep it real bum ass nigga.
Its not a plan yet. Ive always wanted to be able to buy my rides @ a dealer auction. If i can help the ppl i know i the process its all good. I dnt want a lot
I did something like that until my practice got very busy , then I put my license in hold. I intend to go back to it after I retire.
just a way to make a way for me & mines! thats it.
contracts................... just like you would pay a dealer. I would have repoed that shit!
you never know till you try. what works for me wont work for you.
I like this kid's videos. The main part of getting this set-up is the office and lot space. That's where you will save the most money. He obviously had access to an office park that's familiar with the requirements for a auto dealership. Signage, amount of required spaces, etc. For $500 a month that should be doable for a part-timer at the very least to break even. One to two vehicles per month should net your $1000 in profit easy. Flipping them is relatively straightforward with Ebay motors and Craigslist. The start-up cost between surety bond and license fees here in Texas are around $2500. Not bad at all. If I can find a small business park that will do a short term lease or a month to month for around $500 I'd be willing to throw $5k at it to give this a shot.
