|
Frequently
Asked Questions
Licensing FAQs
How do
I get a license for a used car dealership?
You must
submit a complete
Application for Used Motor Vehicle Dealer License. Refer to the
Information Sheet for Used Motor Vehicle Dealers for more detailed
information on the required documents that must be sent with the application.
Prior to preparing the application, you must attend a Board-approved
pre-licensing seminar, and obtain an established place of business and a working
telephone number listed in the business name. At the established place of
business, you must erect an appropriate permanent sign, advertising your
business as a used car dealership.
What
are licensing fees for a used car dealer license?
Refer to
the
Fee Schedule for current fees for licensure.
How do
I get a used parts license?
You must
submit a complete
Application for Used Motor Vehicle Parts Dealer License. Refer to the
Information Sheet for Used Parts Dealers for more detailed information on
the required documents that must be sent with the application. Prior to
preparing the application, you must obtain an established place of business and
a working telephone number listed in the business name. At the established
place of business, you must erect an appropriate permanent sign, advertising
your business as a used parts dealership.
What
are licensing fees for a used parts dealer license?
Refer to the
Fee Schedule for current fees for licensure.
What
license do I need to sell new vehicles?
New
vehicle dealers, or franchise dealers, are not licensed or regulated by the
Georgia State Board of Registration of Used Motor Vehicle Dealers. Franchise
dealers have a franchise agreement with the manufacturer of the vehicles (Ford,
GM, Toyota, etc.), and the manufacturer assumes the responsibility for the
business practices of the franchise dealership. Even though the franchise
dealership sells used motor vehicles from the dealership, a used motor vehicle
dealer license is not required for the franchise location. Besides a local
business license, the franchise dealer will need to obtain a dealer registration
number from the
Department of Motor Vehicle Safety.
What is
an “established place of business”?
An
“established place of business” is defined in the Official Code of GA Annotated,
O.C.G.A 43-47-2 (3), as “a salesroom or sales office in a building or on an
open lot of a retail used car dealership or at which a permanent business of
bartering, trading, offering, displaying, selling, buying, dismantling, or
rebuilding wrecked or used motor vehicles or parts is carried on, or the place
at which the books, records, and files necessary to conduct such business are
kept. Each such place of business shall be furnished with a working telephone
listed in the name of the licensee for use in conducting the business and shall
be marked by an appropriate permanent sign as prescribed by the appropriate
division under this chapter.”
How
many vehicles can I sell in a year before I have to be licensed?
You may
not sell any vehicles with the intent to make a profit before becoming a
licensed dealer.
O.C.G.A. 43-47-2 (17)(A) defines a used motor vehicle dealer as “any person
who, for commission or with intent to make a profit or gain of money or other
thing of value, sells, exchanges, rents with option to purchase, offers, or
attempts to negotiate a sale or exchange of an interest in used motor vehicles
or who is engaged wholly or in part in the business of selling used motor
vehicles, whether or not such motor vehicles are owned by such person. A motor
vehicle broker shall be deemed to be a used motor vehicle dealer or a used car
dealer for the purposes of this chapter.”
I
thought I could sell up to five vehicles in a year before I had to be licensed?
The
“five cars per year” statement has been misinterpreted by many people. The
origin of the “five car” phrase is the Used Motor Vehicle Dealers' and Used
Motor Vehicle Parts Dealers' Registration Act.
O.C.G.A. 43-47-2 (17)(A) states that “…the sale of five or more used motor
vehicles in any one calendar year shall be prima-facie evidence that a person is
engaged in the business of selling used motor vehicles.” This means that
evidence indicating that a person has sold five or more used motor vehicles in
any one calendar year can be used to show that the person is engaged in the
unlicensed practice of used motor vehicle sales. This statement should be read
in its context, and should not be misinterpreted to mean that a person may sell
up to five vehicles in a year before becoming licensed.
Can I operate a used car
dealership out of my home?
Whether
you can lawfully operate a used car dealership out of your residence will depend
upon the requirements and restrictions of your local zoning ordinances. Even
though you plan to operate from your residence, you must meet the requirements
of an “established place of business”, as defined in the Used Motor Vehicle
Dealers' and Used Motor Vehicle Parts Dealers' Registration Act. You should
contact your city or county Planning & Zoning Office to determine if current
regulations will allow you to operate the business from your residence. You
should also ask if current regulations will allow you to erect a permanent sign
at your residence to advertise your business as a used car dealership.
What is
an “appropriate permanent sign”?
The sign used to advertise
your business must be of a permanent nature, as opposed to a banner or one along
the lines of a real estate sale sign. “Appropriate” is determined by the city
or county regulations that detail the restrictions in signage in your area. You
will need to discuss the restrictions with your local zoning or business license
office.
How do
I become a used car wholesaler?
The Used
Motor Vehicle Dealer License allows a dealer to sell wholesale or retail.
No distinctions are made between wholesalers and retailers on the license.
The process for obtaining the license is detailed on the
Information Sheet for Used Motor Vehicle Dealers.
One
caution: Because the Used Motor Vehicle Dealer License allows a dealer to sell
both wholesale or retail, Board Rule 681-1-.01 states that you may not use the
word “wholesale” in the name of the business, or in any advertising.
I don’t
want to set up a car lot. I just want to be a broker. How do I become a
broker?
The Used
Motor Vehicle Dealer License allows a dealer to sell from an established place
of business. This established place of business can be a used car lot, or
it can be an office from which used cars are brokered. The licensing
requirements for a broker are the same as for a dealer with an open lot.
Please refer to the Information Sheet for Used Motor Vehicle
Dealers
for the requirements.
Do I
need a license to sell on the Internet?
You need a used motor
vehicle dealer license to sell a vehicle, whether on an open lot, as a broker in
an office suite, or on the Internet (O.C.G.A.
43-47-7). Even though you sell through a site on the Internet, you must
still meet the requirements for an “established place of business”, as stated in
O.C.G.A 43-47-2 (3) and
Board Rule 681-6-.01. You must also meet the same requirements for bond and
insurance as a dealer with an open lot. Refer to the
Information Sheet for Used Motor Vehicle Dealers.
What
type of license do I need to sell motorcycles or pull-behind trailers?
Motorcycles and
non-motorized trailers do not meet the definition of “motor vehicle” or “car”,
as defined in the Used Motor Vehicle Dealers' and Used Motor Vehicle Parts
Dealers' Registration Act.
O.C.G.A. 43-47-2 (7) defines “motor vehicle” or “car” as “…every vehicle
which is self-propelled and required to be registered under the laws of this
state, except trackless trolleys (which are classified as streetcars),
airplanes, motorboats, motorcycles, motor driven cycles, or go-carts.”
According to this code section, motorcycles and pull-behind trailers are
exempted from the category of “motor vehicle” or “car”, and, consequently, the
sales of motorcycles and pull-behind trailers are not regulated by the Used
Motor Vehicle Dealer Board. The only requirement to buy and sell motorcycles or
pull-behind trailers is to obtain a local business license and a dealer
registration number from the
Department of Motor Vehicle Safety.
Do I
need a license to repossess automobiles?
You do not
need a used motor vehicle dealer license to strictly repossess automobiles. You
will need a used motor vehicle dealer license, if you begin buying and selling
repossessed vehicles.
How do
I find out about pre-licensing seminars in my area?
Contact
the
Board-approved seminar providers , listed on our website, for information on
schedules and fees for pre-licensing seminars in your area.
After I
submit my application, how long will it take to get my license?
Please
allow 30 days from the date you mail the application to obtain your license.
You can verify your license when it is issued by going to the License
Verification page on our website.
May I
open up my dealership while my application is being reviewed?
You may
not legally operate a used motor vehicle dealership without a license. See
O.C.G.A. 43-47-7
How
many photographs do you require?
The
photographs of your business must show the outside of the facility, to include
the sign. Whether you will need to submit one photograph, or multiple
photographs, will depend upon whether you can sufficiently show your place of
business and your sign in one photograph. If your business is in a suite in an
office complex, your photograph(s) must show your business listed on the marquee
of the office complex, and your must submit photograph(s) of the suite door,
indicating your signage on the door.
Can
more than one dealership be licensed at the same location?
According
to
Board Rule 681-3-.05, joint used motor vehicle dealer operations may be
conducted, provided licensees maintain a separate office, entrance, inventory,
records, and files necessary to conduct business. Each licensee at the location
must ensure that the business name in which the license is listed appears on all
business documents and vehicles offered for sale by the licensee. Each licensee
must also have the required signage and telephone listing in the business name.
How
long do I have to submit the application, once I complete the pre-licensing
seminar?
One year
from the date of seminar completion.
How do
I find out about continuing education seminars?
Contact
the
Board-approved seminar providers , listed on our website, for information on
schedules and fees for pre-licensing seminars in your area.
When
does a used car license expire?
All used motor vehicle
dealer licenses are two-year licenses, expiring on March 31 of the even year.
Licensed dealers will receive a renewal application approximately six weeks
prior to the expiration date.
What is
a “designee”?
The designee is the person
named by a corporation, a limited liability company, or a partnership to be the
responsible license holder for the business. The business can have only one
license holder; therefore, the license is issued to the business with the
designee as the license holder. The designee assumes full responsibility for
the operations of the licensed dealership on behalf of the partnership,
corporation, or limited liability company. A sole proprietorship does not name a
designee, because the sole owner is the license holder for the business and is
considered by the Used Motor Vehicle Dealer Board to be the responsible person
for the operations of the licensed dealership. The designee can be an officer,
if the dealership is owned by a corporation, a partner, if the business is owned
by a partnership, or an employee of the business. The designee makes
application for the used motor vehicle dealer license on behalf of the
corporation or partnership. When the application is submitted, the designee
must submit the certificate of completion of the pre-licensing seminar to prove
that the designee completed the required seminar. Other officers or partners do
not have to submit proof that they have attended, although they will be wise to
attend. The fingerprint cards submitted must be for the designee.
What do
I need to do if the designee of my business leaves?
You will
need to submit a new
Application for Used Motor Vehicle Dealer License, and you will need to
check the block for Change of Designee. The complete application, including
fees and required accompanying documents (See
Information Sheet for Used Motor Vehicle Dealers), must be submitted. The
only additional requirement for a change of designee is an original notarized
letter from the previous designee, releasing the position of designee to the new
person. If the previous designee is no longer available to provide the letter
of release, then the president or secretary of the corporation or LLC, or a
partner of the partnership, must submit a letter to authorize the change.
What
licenses do I need to operate a used motor vehicle auction?
You will
need to submit an Application for
Used Motor Vehicle Dealer License and an
Application for Auction Company License. You may also need to submit an
Application for Auctioneer License, if you are not a licensed auctioneer,
and you plan on auctioning the vehicles yourself. You must have a licensed
auctioneer to conduct the auctions. Refer to the
License Requirements for Auctioneer for further information on becoming a
licensed auctioneer.
How do
I change my dealership name or address?
You will
need to complete the
Request for Change of Location &/or Change of Name. Change of location
requires photographs of the new location, including the sign, and a new
certificate of liability insurance, which lists the new location address.
Change of
name requires a new bond or bond rider, issued in the new name, a new
certificate of liability insurance, listing the new name, and photographs of the
business that reflect the name change on signage.
Caution: A change of business structure, such changing from a sole
proprietorship to a corporation, limited liability company, or partnership, is
not a name change. Rather, this type of change is the formation of a new and
separate business entity. A name change request cannot be granted for such a
change. When the business entity has changed, even if a corporation is
dissolved and a new corporation is created, a new and complete
Application for Used Motor Vehicle Dealer License must be submitted,
including fees and all required documents.
I want to open a second
location under the same dealership name. How do I do that?
Submit an
Application for Used Motor Vehicle Dealer License, and check the box for
Supplemental License. The designee must be the same as for the original
license. The accompanying documents will be required for this supplemental
license application as was required for the original location’s license, with
the exception of the proof of seminar completion and fingerprint cards. The
same bond issued to the original location may be used for the supplemental, but
a copy of the bond must accompany the supplemental application. The certificate
of insurance must be amended to list the additional location. An original
amended certificate must accompany the supplemental application.
Complaints and Titles FAQs
How
long does a dealer have after the sale of a vehicle to transfer the title to my
name?
The dealer
has 30 calendar days from the date of the sale to apply for a title in the
purchaser’s name and to furnish the purchaser with the proper documents to
obtain a tag for the vehicle.
It’s
been over 30 calendar days, and I still do not have my title, and I can’t get a
tag. What can I do?
·
You should
attempt to contact the dealer to demand the title. If you receive no
satisfaction from the dealer, you may file an
Official Complaint
to the Georgia Board of Registration of Used Motor
Vehicle Dealers. Keep in mind that the Board’s authority is limited to
sanctions against a dealer’s license. The Board does not have the authority to
get your title for you.
·
You also may wish
to seek legal counsel on your legal rights to pursue the possession of your
title in court.
·
If the dealer is
licensed, or if the dealer has recently closed operations, you may request from
the Board office a Letter of Certification, to include the bond information, on
the dealer. Every dealer is required to obtain a $20,000 surety bond, issued
in favor of the State of Georgia, to assist purchasers harmed by the dealer’s
misrepresentations regarding liens against any used motor vehicle, or titles to
any used motor vehicle. You can use the bond information to file a claim
against the bond with the bond company.
·
If the dealer is
unlicensed, you may request from the Board office a Letter of Certification that
indicates that the dealer is unlicensed. You will then need to follow the
procedures of the Department of Motor Vehicle Safety to obtain a
bonded title.
·
If the dealer’s
license has lapsed, you may access the
License Verification page to search for the dealer license. Once you have
found the dealer information, you can print the information that indicates that
the dealer’s license has lapsed. You may then take this information to the
Department of Motor Vehicle Safety and follow their procedures for obtaining a
bonded title.
How can
I know that a dealer is licensed and in good standing?
You can
verify whether a dealer is licensed by accessing the
License Verification page on our website. Every licensed used motor vehicle
dealer in Georgia is listed on this site. Be sure to click on the link that
reads, “Click here to search for a licensed professional entity,” since the
license is issued in the business name. Follow the steps to search for the
particular dealer in which you are interested. The information you receive will
indicate the license number, the status of the dealer, the date the license was
issued, the date the license expires, and if any public board orders exists.
I
financed my car, and now my finance company has closed or merged with another
company. I can’t find anyone to get my title. What can I do?
Please
refer to the information maintained by the Department of Motor Vehicle Safety
for obtaining a title
when a lien holder is out of business. Whether the lien holder is a finance
company, a bank, or a credit union, this site references addresses and telephone
numbers for the agencies responsible for the regulation of the entity.
| 
