Dealer FAQ

I only sell the Chrysler or GM brand and would like to stay in business as a car dealer. What do I need to do to become a used car dealer?

• Approval of business location by a Division of Motor Vehicles representative.
• Completed application form HSMV 86056 – Application for a License as a Motor Vehicle, Mobile Home or Recreational Vehicle Dealer.
• Fee of $300 for each main location; applicant must make check payable to DHSMV.
• Original $25,000 surety bond, HSMV form 86020; or a letter of credit, HSMV form 86057.
• Copy of lease for location or proof of ownership.
• Copy of dealer training seminar certificate. The length of the Dealer Training Seminar is eight hours for franchise dealers and 16 hours for VI, VA, VW, and SD license types (see next bullet for explanation of license types.) A list of Department approved dealer training schools is available online.
• Independent dealers (VI), Auction dealers (VA), Wholesale dealers (VW), and Salvage dealers (SD) have the option to submit a copy of:
  • A garage liability insurance certificate which shall include, at a minimum, $25,000 combined single-limit liability coverage including bodily injury and property damage protection and $10,000 personal injury protection; OR
  • A general liability insurance policy coupled with a business automobile policy, which shall include, at a minimum, $25,000 combined single-limit liability coverage including bodily injury and property damage protection and $10,000 personal injury protection

  I only sell the Chrysler or GM brand, but I would like to stay in business as a franchise car dealer. What should I do?

  In order to stay licensed as a franchise dealer, you must be authorized by a manufacturer to sell its brand of vehicle via a franchise agreement. Once you have been approved to sell the brand, you must provide the Department with a completed application form HSMV 86056. Please contact your local Division of Motor Vehicles Regional Office for more information.

  I sell the Chrysler or GM brand; however, I also sell Harley Davidson motorcycles. Can I stay in business as a franchise dealer?

  Yes, however, you will no longer be allowed to sell the Chrysler or GM brand. You will only be able to sell the Harley Davidson brand and used vehicles.

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