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How to Become a Used Car and Trucks Dealer in Birmingham?

According to the latest reports and sales figures, car sales for 2016 set a record of 17.6 million cars and trucks in US market. As the car sales continue to increase, demand for reputed dealerships and sellers are on rise. If you are planning to open new car dealerships in birmingham or any other locality, then it is a smart choice. However, it is to be highly noted that all the dealers should be licensed with the concerned department of the motor vehicle and the used car dealer license should be the most common among all. In order to ensure compliance with the rules, it is highly important to get an auto dealer bond.

It is preferable to select the right type of used car dealer license. That is why it is essential to know about the different varieties of licenses. Take a look at the following points to get a better insight.
  • Independent motor vehicle: The license which covers used car, used trucks birmingham, motor homes and also, neighbor vehicles.
  • Independent motor cycle: Which includes used motor cycles, scooters, ATVs etc.
  • Wholesale dealers: Which includes selling or exchanging vehicles with other licensed dealers.
  • Travel Trailer: License that covers used travel trailers
  • Trailer or Semitrailer: License for new or used utility trailers and semitrailers
  • Wholesale Motor vehicle auction: Vehicles are offered through auction to licensed dealers.
  • Independent mobility motor vehicle dealer: New mobility motor vehicles are offered for sale.

If you are planning to sell more than one type of vehicle, then you will need a separate General Distinguishing Number (GDN) for each.The first step in the process of license requirement is obtaining a GDN for your respective dealership. The GDN application can be filled up online but the main requirement of obtaining it includes:
  1. Proof should be shown of permanent place of business which should meet all the important criteria.
  2. There should be spacious and well-equipped show room space.
  3. All the relevant certificates should be provided for business entity information.
  4. Proof should be given regarding identity.
  5. If applicable, additional locations should be provided.
  6. A surety bond of $25,000 for motor vehicle, motor cycle, wholesale motor vehicle auction and for mobility vehicle dealers should be paid.


$900 is the GDN license fee and the dealer license plate is $90 each. Proof of payment i.e., a receipt should be provided with the GDN application form. It is highly recommended to double check all the submitted paper work.

It is one of the major requirements to post a $25,000 auto dealer bond for getting a used car dealer license. This bond functions as a protection to the respective state and its citizens that the dealership will comply with all the rules governing the business.

Thus, if all the above criteria are filled, it will be very easy to start up your own used car dealership across the desired location.


This post first appeared on Academy CDJR, please read the originial post: here

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How to Become a Used Car and Trucks Dealer in Birmingham?

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