FAQs for Becoming a Licensed Car Dealer In North Carolina
What are the requirements to get your dealer‘s license in North Carolina?
To get a dealer‘s license in North Carolina you have do the following:
- You must be at least 18 years old
- Have a valid driver‘s license
- Complete the Checklist on the VS-415 Minimum Dealer License Requirements
- Pass a criminal background check
- Complete the 12-hour NC Pre-Licensing Class
- You also need to have a valid business license and provide proof of a physical address.
- Additionally, you may be required to provide proof of financial responsibility and a copy of a surety bond.
What topics does the Pre-licensing Class cover?
The 12–hour pre–licensing class covers topics such as dealer record keeping, business operations, and consumer protection laws. You will learn about the laws and regulations that apply to car dealerships in North Carolina, as well as the necessary steps to become a licensed dealer. Additionally, you will learn about the paperwork that must be completed, along with other topics such as advertising regulations and you will hear from some vendors.
What is a surety bond and how do I get one for my car dealership?
A surety bond is a type of insurance policy that protects customers from financial losses due to fraud or other malfeasance. In order to get a surety bond for your car dealership, you will need to contact a surety bond provider. They will evaluate your financial standing and provide you with an appropriate bond.
Can my family drive on my North Carolina dealer tags?
No. North Carolina dealer tags are intended for use by dealers only. They are not valid for use by family members.
Where do car dealers source their inventory?
Car dealers typically source their inventory through online auctions, in person auctions, trade-ins, retail purchases from craigslist or other marketplaces, and from wholesalers.
Is there different requirements for being buy here, pay here dealer?
No, as far as the requirements go there is no difference. There is are two types of licenses – Retail and Wholesale. Retail includes cash and financing vehicles to the public. Wholesale only includes selling vehicles to other licensed dealers only.