To get your auto dealer license in North Carolina, you'll need to follow these five steps:
- Find a location
- Take the 12-hour pre-licensing course
- Get bonded and insured
- Register the business
- Pass a criminal background check
The North Carolina State Highway Patrol's Investigative Services Unit (ISU) licenses dealers now, a job that used to belong to the DMV. It publishes a Minimum Dealer License Requirements form but we've provided this helpful, easier to read, guide!
1. Find a Location
If you want to sell cars to the public, You need an established salesroom with at least 96 square feet of floor space in a permanent, enclosed building, separate from any living quarters or other businesses. This location must have a separate entrance and comply with all State, County, and Municipal zoning ordinances or regulations.
The established salesroom and/or office must be inspected and approved by an officer of the State Highway Patrol's Investigative Services Unit before the license is issued. This ensures that your business location meets all the necessary standards and requirements.
But when selecting a retail location, ensure it is easily accessible to the public and visible from the road. Consider the local competition and choose a site that will attract customers. Google the address and see if you need to mark any old business as 'closed' It's also helpful to consult with local zoning authorities early to ensure your site meets all regulatory requirements.
2. Take the 12-Hour Pre-Licensing Course
It is mandatory that all prospective dealers take a two-day, 12-hour class learning the Do's and Don'ts of the car business. The top class in North Carolina for car dealers has dates and locations available now.
Sign up here: https://carolinadealertraining.com/courses
Enroll in the course as early in the process as possible to help you avoid possible mistakes in the dealer application process. Make sure to keep a copy of your completion certificate as it will be required for your license application.
3. Get Bonded and Insured
A corporate surety bond of $50,000 is required for the first salesroom and $25,000 for each additional salesroom. In addition, you must have either a comprehensive liability insurance policy or the Garage Coverage Form to ensure coverage for your dealer plates.
4. Register your Business
You need to be "official." This means you need a current business license from the state and local municipality saying you can do business at your physical location. You also need to come up with a great Dealership name!! Once you have one google it and make sure it's not too similar to any local competitors!
Use online services like LegalZoom to file the paperwork without the headache. Double-check that everything is filed correctly and keep copies of all submissions. Contact your local zoning office early so you don't get blindsided after you sign a lease.
5. Pass a Criminal Background Check
A criminal background check is required to ensure you meet the standards for operating a dealership. This step is crucial for maintaining the integrity and trustworthiness of the dealership industry.
Now You're Ready!
Submit Application and Fees
Your site has to be approved before you apply. Then complete and submit the required forms (ISU-400, ISU-405, ISU-409, and ISU-426) along with your fees. Ensure all documentation is accurate, legible, and includes all necessary supporting documents.
Double-check all forms for accuracy before submission to avoid delays. Use a checklist to ensure you include all required documents.
The Dealer Section has offices in Raleigh and Huntersville, and those are the only two places in North Carolina that handle dealer licensing in person.
For more details check out the State Highway Patrol's Investigative Services Unit page
In the Meantime… You're going to need a DMS to run deals, a Website to attract customers, and Online Marketing to sell your cars.
Here at KGI we do all of the above! We have helped thousands of dealers across the Carolinas launch successful dealerships. We are here to help you in any way we can!
Want buyers to find your new lot on Google from the first week? That is what our automotive SEO is built for.
Need more info? Check out our NC Dealer's Corner for more details!
DID YOU KNOW? There are approximately 7,900 licensed automobile dealers and 44,000 sales reps in the state of North Carolina, according to the Highway Patrol's New Dealer Packet!
FAQs
How much does it cost to get your dealer's license?
The NC Dealer License is $115.50 a year and is issued for two years, so plan on $231, plus dealer plates. Based on the requirements above there are many more additional expenses: Obtaining a bond, registering your business, taking the PLE class, signing a lease on an office, etc.
How much is it to get your Wholesale License?
In North Carolina, it's the same: $115.50 a year, issued for two years.
What paperwork is required in order to apply for my auto dealer license?
- ISU-400 (Notarized)
- ISU-405
- ISU-409 (completed by your surety company, with its power of attorney)
- ISU-426 (Notarized)
- 12-hour pre-licensing education certificate dated within the past 12 months
- Zoning approval letter
- Garage Liability Insurance Certificate or Accord form
- If Corporation/LLC, copies of your Articles of Incorporation or Organization and Secretary of State filing
What other types of dealer licenses are available in North Carolina?
North Carolina offers several types of dealer licenses, including new vehicle dealer, used vehicle dealer, wholesaler, and motorcycle dealer licenses.
What is the purpose of the dealer education course?
The dealer education course ensures that applicants are knowledgeable about state laws, regulations, and best practices related to vehicle sales. Completion of this course is mandatory for new applicants.
How long is the dealer license valid?
North Carolina dealer licenses are issued for two years.
What are the penalties for operating without a valid dealer license?
Operating without a valid dealer license can result in fines, legal action, and the suspension or revocation of the ability to conduct vehicle sales in North Carolina.
What are the continuing education requirements for maintaining a dealer license in North Carolina?
All applicants for a used motor vehicle dealer's license must complete a 12-hour pre-licensing course within the last twelve months when seeking an initial license. For license renewals, a 6-hour continuing education course approved by the Division is required, unless exempt. Exemptions include used motor vehicle dealers who meet specific educational requirements or individuals aged 62 or older as of July 1, 2002, seeking a license renewal.
Where can I find more info?
Always check the State Highway Patrol's Investigative Services Unit for the latest information. Here are some helpful links:
