How to Become a Licensed Pennsylvania Car Dealer in 2023 A Comprehensive Guide

Becoming a licensed Pennsylvania car dealer can be an exciting and lucrative venture. However, the process of obtaining a license can be daunting, especially if you're new to the industry. In this article, we'll provide you with a comprehensive guide on how to become a PA car dealer, step by step.

1. Determine the Type of License You Need The Pennsylvania Department of Transportation (PennDOT) issues three types of dealer licenses: new vehicle dealers, used vehicle dealers, and full agents. New vehicle dealerships sell new cars and trucks from a single manufacturer, while used vehicle dealerships sell pre-owned cars and trucks. Full agents are authorized to sell both new and used vehicles. Determine which type of license you need before proceeding to the next step.
2. Meet the Requirements To qualify for a PA car dealer license, you must meet several requirements set forth by PennDOT. These include:

• A valid driver's license
• A criminal background check
• A business location with zoning approval
• A surety bond
• Liability insurance

In addition, you must complete a dealer training course approved by PennDOT.

3. Obtain a Zoning Approval Before applying for a license, you must obtain a zoning approval for your business location. The approval must be in writing and issued by the local government where your business is located.
4. Obtain a Surety Bond A surety bond is a type of insurance that guarantees payment to PennDOT in the event that you fail to comply with the state's regulations. The amount of the bond required varies based on the type of license you're applying for. New vehicle dealers must post a bond of $50,000, while used vehicle dealers and full agents must post a bond of $20,000.
5. Obtain Liability Insurance Liability insurance is another requirement for obtaining a PA car dealer license. The amount of coverage required depends on the number of vehicles you plan to sell. The minimum coverage required is $50,000 for one vehicle and an additional $20,000 for each additional vehicle.
6. Complete a Dealer Training Course PennDOT requires all new car dealers, used car dealers, and full agents to complete a dealer training course before obtaining a license. The course covers topics such as dealer responsibilities, licensing requirements, and PennDOT regulations.
7. Submit Your Application After you've met all of the requirements, you can submit your application for a PA car dealer license to PennDOT. The application must include your business location, proof of zoning approval, surety bond, liability insurance, and dealer training certificate.
8. Pay the Required Fees The final step in obtaining a PA car dealer license is paying the required fees. The fee for a new vehicle dealer license is $1,000, while the fee for a used vehicle dealer or full agent license is $300.

In conclusion, becoming a licensed Pennsylvania car dealer can be a complex process, but it's achievable if you follow the steps outlined above. By meeting the requirements and completing the necessary training, you can start your own car dealership and enjoy the rewards of a successful business.