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View All Dealer License, General FAQs

What are the bonding requirements?

All licensees are required to submit to the department a continuous bond in the amount of $50,000. All dealers are required by law to become designated agents of the department. The dealer bond also satisfies the designated agent bonding requirement. (Section 40-12-398, Code of Alabama 1975)

All licensees are required to submit to the department a continuous bond in the amount of $50,000. All dealers are required by law to become designated agents of the department. The dealer bond also satisfies the designated agent bonding requirement. (Section 40-12-398, Code of Alabama 1975)
Related FAQs in Dealer License, General
A $5 fee is only required when additional locations are added to the license.
The licensed dealer must apply for an off-site sales event license at least 10 calendar day prior to conducting the off-site sale. The application fee is $25. The off-site sale events shall not exceed 3 per dealer license year with each sale not to exceed 10 consecutive calendar days in duration. A temporary sign must be displayed at the location where the off-site sale is conducted. A facilitator of an off-site sale will be required to obtain a master off-site sales license. The facilitator will be required to verify the off-site license of participating dealers. The facilitator must list each participating dealer’s off-site sale license number on the application. If the dealer and facilitator are the same entity, only the master off-site sales event license is required. (Section 40-12-395, Code of Alabama 1975)

Motor vehicle dealers must electronically update their dealer license information using MyDMV. A new insurance certificate and proof of power must be provided for the new location. Retail dealers must also furnish photographs of the new location and signage.

All dealers are required to become a designated agent.
Licenses are not mailed. When your application has been approved, you will receive an email instructing you to login to the system and print your license.

Designated Agent Qualification Requirements:

  • Licensed Alabama motor vehicle dealers must have a current dealer license.
  • Licensed financial institutions – Submit a copy of their Title 5, Chapter 19, State Banking License or equivalent.
  • Pawnshops – Submit copy of Alabama Pawnshop License.
  • Insurance companies
  • Towing companies
  • Out of state financial institutions (manufactured homes only) – Submit copy of company’s State business or regulatory license.
  • Law Firms (manufactured homes only) – Submit copy of document evidencing that a principal of the firm is admitted to the State Bar.
  • Title Agents (manufactured homes only) – Submit copy of certificate of authority issued by the Alabama Department of Insurance.

Apply to become a designated agent by visiting MyDMV and Register as an Alabama Partner. Please note: the dealer regulatory license bond satisfies the Designated Agent bonding requirement. Non-dealers are required to post a surety bond in the amount of $50,000, payable to the State of Alabama.

When the application is approved by ALDOR the Designated Agent account will be set up in MyDMV.

All designated agents are required to complete their Designated Agent Training courses online before their access is granted. Once the training is complete the Designated Agent is allowed to process title applications through MyDMV.