In the state of Ohio, if you are planning on selling used cars for a profit you are required to get an Ohio Used Car Dealer License. However, If you are selling up to five of your own personal vehicles registered in your name in a 12 month period you will not need a license.
Steps to Get Licensed:
Step #1: Prepare Business Location
Before applying for your license, make sure you have a commercially zoned location for your business that meets the following requirements:
- Display area – distinguished from any parking areas
- Not connected to residence or an unrelated business
- Permanent office at least 180 square feet
- Permanent sign showing business name
- Posted business hours and telephone number
For a full list of detailed requirements visit the Ohio BMV website.
You will need to include photographs of the location with your application. Also, the BMV will inspect your physical location.
Step #2: Complete Training Course
You will need to complete a 6-hour course sometime within the 6 month period before your licensing. You can register for a course from one of these authorized providers:
https://ohiodealer.com/index.html
Step #3: Register Business
Before you are able to get your license, you will need to make sure you register your business with the following government agencies:
Secretary of State
https://www.sos.state.oh.us/businesses/
614-466-2655
IRS in order to get your FEIN
County Auditory’s Office for your Vendor Number
http://caao.org/auditors-directory/
Step #4: Background Check
All owners will need to complete background checks including electronic fingerprinting. You can learn more and find how to submit your background check on the BMV website.
Step #5: Purchase A $25,000 Ohio Motor Vehicle Dealer Bond
An Ohio Motor Vehicle Dealer Bond is a type of surety bond that protects your customers. If you fail to follow the rules and regulations of the industry, someone can make a claim against your bond.
Don’t worry, you will not have to pay the full $25,000 for your bond! You will just pay a small percentage, usually 1-15%, of the bond amount depending on your credit.
You can find out exactly how much you would pay for your bond here:
Get free quotes for your Ohio Used Car Dealer Bond!
Step #6: Complete An Application
You can download your application online here. Make sure to complete your application in full to avoid delays or declination. You will also need to include the following fees with your completed application:
Permit fee: $50
Title Defect Rescission Fund fee: $150
You can submit your application with all additional documents, pictures, and fees to:
Ohio Bureau of Motor Vehicles
Attention: Dealer Licensing Section
P.O Box 16521
Columbus, Ohio 43216-6521
Step #7: Purchase Dealer Plates
It is required to purchase the master plates for $50.25. Any additional plates you choose to purchase will cost $10.25 each
Upon approval, you should receive your license from the BMV in 4-6 weeks.
For any further questions on the licensing process, contact the BMV Dealer Licensing Section at (614) 752-7636.
Related Links:
Motor Vehicle Dealer License FAQ
