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ecretary of State

Auto Dealer Services Division

Auto Dealer Services Division > Requirements > License (Basic) Requirements License (Basic) Requirements

All dealers are subject to the following licensure requirements:

  • $25,000 bond, form can be found here.
  • Liability insurance in the following amounts:
    • $100,000 for bodily injury to one (1) person.
    • $300,000 for bodily injury per accident 
    • $50,000 for property damage
  • National Criminal History Background Check no more than 60 days old
  • An established place of business
    • Permanent, enclosed building or structure
    • Cannot be a residence, tent, temporary stand, or permanent quarters only temporarily being occupied

New or Used Dealers are subject to the following additional requirements regarding their established place of business:

  • Be at least 1,300 square feet
  • Be able to accommodate the display of a minimum of 10 vehicles
  • Be well-lit during hours of operation
  • Have and display customer parking areas adequately surfaced with asphalt, concrete, rock, or substance that will not change with weather conditions
  • Have a dealer office housed at the established place of business that is:
    • housed at the dealer's established place of business
    • at least one hundred (100) square feet in size
    • equipped with office furniture such as a desk, chairs, and filing cabinets
    • reflective of functional use and operation of the license
    • served with utilities such as:
      • electricity;
      • lighting;
      • heat;
      • operational plumbing; and
      • a business telephone
  • Have a conspicuous, permanent sign identifying the dealer by the name in which the dealer is licensed and the dealership's hours of operation
  • Be manned and open to the public at least 30 hours each week or at least 20 hours each week and a telephone answering, paging, or mobile service offered during the remaining 10 hours each week, the number for which is identified on the business sign

Watercraft Dealers are subject to the following additional requirements regarding their established place of business:

  • Be able to display at least 10 watercraft
  • Have a conspicuous and permanent sign identifying the dealer by the name in which the dealer is operating and setting forth the hours of operation of the dealership