Securing a dealer’s license in Utah might seem like a complex process, but don’t worry—we’re here to make it simple. This step-by-step guide will help you navigate the process smoothly, and before you know it, you’ll be the proud holder of your own dealer’s license. So, let’s start from the beginning, shall we?
Identify the type of dealer license you need
First things first—you need to identify the type of dealer’s license you need. Not all licenses are created equal, and the type of license you need depends on the kind of business you plan to run. Here’s a quick rundown:
New Vehicle Dealer License: This is for you if you plan to sell new cars directly from the manufacturer. Think big brands like Ford, Chevrolet, or Toyota.
Used Vehicle Dealer License: If you’re looking to sell pre-owned vehicles, you’ll need this license. This is your go-to if you’re planning on starting a used car lot.
Special Equipment Dealer License: This one’s a bit more niche. If you’re planning on selling vehicles like snowmobiles or off-road vehicles, you’ll need a Special Equipment Dealer License.
So, take a moment to consider what kind of dealership you want to own. Remember, knowing how to get a dealer’s license in Utah starts with understanding the type of license you need. So take the time to make the right choice—it’s the first step to securing your dealer’s license in Utah!
Up next, we’ll talk about the necessary documentation you’ll need to prepare.
Prepare necessary documentation
Now, let’s dive into the nitty-gritty of how to get a dealers license in Utah—preparing your necessary documentation. It’s not the most exciting step, but trust us, it’s vital to ensure a smooth application process.
You’ll need to gather the following documents:
Proof of Established Place of Business: This can be a lease agreement or proof of property ownership. Remember, your business location must meet specific zoning requirements set by Utah law.
Proof of Liability Insurance: You’ll need to provide evidence that you have liability insurance for your dealership. The state requires a minimum of $75,000 coverage.
Dealer Bond: A dealer bond of $75,000 is necessary and serves as a guarantee that you’ll adhere to the state’s dealer regulations.
Personal History Form: Each owner, partner, or corporate officer in your dealership must complete a Personal History Form from the Utah State Tax Commission.
Gathering these documents before you start the application process can help to mitigate any potential roadblocks. It’s all a part of knowing how to get a dealer’s license in Utah.
With your paperwork in order, we can move on to the next step—education. Don’t worry; there’s no pop quiz at the end!
Complete pre-licensing education
Remember when you thought your school days were over? Well, not quite yet! Now that you’ve gathered your documents, it’s time to hit the books again. But don’t worry, this is a crucial step in understanding how to get a dealers license in Utah that will set you up for success.
The Utah State Tax Commission requires all prospective car dealers to complete a pre-licensing course. This course is specifically designed to provide you with comprehensive knowledge of the motor vehicle industry and the state’s laws and regulations.
Here’s what you need to know:
Course Provider: The course must be taken from an approved provider. The list of approved education providers can be found on the Motor Vehicle Enforcement Division’s (MVED) website.
Course Duration: The course is a 20-hour program, so you might want to stock up on coffee (or energy drinks, if that’s more your style).
Course Completion Certificate: Upon successful completion of the course, you’ll receive a certificate. Keep this safe as you’ll need to include it in your dealer license application.
So, are you ready to go back to school for a bit? Once you’ve completed the course, you’re one step closer to learning how to get a dealers license in Utah.
Next up – it’s time to submit your application and pay the fees. Let’s move on, shall we?
Submit your application and fees
Alright, you’ve done your homework and completed the pre-licensing education course. Give yourself a pat on the back! Now, let’s dive into the next step of how to get a dealers license in Utah — submitting your application and fees.
First things first, you need to fill out the Dealer License Application form. This is a pretty straightforward form that asks for basic information about you and your dealership. Make sure you fill it out completely and correctly — no one likes a do-over.
Now, let’s talk about fees. Yes, it’s that part of the process we all love (not!). But hey, it’s a necessary part of the process. Here’s the breakdown:
- License Fee: The dealer license fee is $127. But remember, this is a small investment towards a potentially profitable venture.
- Plate Fee: You’ll also need to pay a $12 fee per dealer plate. Think of this as your dealership’s official badge of honor.
Once you’ve filled out the form and calculated the fees, you can submit everything to the Motor Vehicle Enforcement Division. Just imagine the satisfaction you’ll feel once you’ve got this step checked off your list!
Now, you’re so close to securing your dealer’s license. The final step awaits you: passing the inspection. Ready to take it on?
Pass the Inspection and Receive Your License
So, you’ve submitted your application and made the necessary payments. Great job! The next hurdle in learning how to get a dealers license in Utah is passing the inspection.
Utah’s Motor Vehicle Enforcement Division is in charge of the inspection. They’re going to be checking your dealership’s business location to make sure it meets all the necessary criteria. Here’s what they’re looking for:
- Signage: Your business name must be clearly visible from the nearest roadway. This isn’t just for the inspectors — it’s for your customers too!
- Office Space: You need to have a dedicated office space with at least one desk, two chairs, internet access, and a working telephone. It’s not just about selling cars, it’s about running a business.
- Display Area: You’ll need a display area big enough to show off at least three vehicles. After all, variety is the spice of life (and sales)!
Once you’ve passed the inspection, there’s just one final step before you can start selling cars — receiving your license. The Motor Vehicle Enforcement Division will send you your shiny new dealer license, officially authorizing you to operate as a vehicle dealer in Utah. And there you have it, you’ve just learned how to get a dealers license in Utah.
So, when you’re ready to take the plunge, remember: it’s a process, but it’s a process that’s totally doable. And the rewards? Well, they can be pretty great. Happy selling!