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Dealer License

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Dealer License

How do I obtain an Alabama Motor Vehicle Dealer License?

Applications for an Alabama dealer regulatory license must be submitted to the department electronically. Click here to apply: https://mvlicense.mvtrip.alabama.gov/ Upon submission of the license application, a transmittal sheet will be provided that lists which documents must be mailed to the department.

Note: If there are outstanding liabilities resulting from penalty assessments for license plates, licenses will not be renewed.

 

Who is required to be licensed?

All new and used motor vehicle dealers, including motorcycle and trailer dealers (excluding trailers not subject to titling), wholesale dealers, and rebuilders. Section 40-12-391, Code of Alabama 1975

 

What are the dealer license fees?

  • Master Dealer License: $125.00
  • Each additional place of business: $ 5.00
  • Off-site sales license: $25.00
  • Master Off-site Sales License: $25.00

(Off-site sales licenses must be purchased at least 10 calendar days prior to sale.)

Note:  Persons engaged in reconditioning vehicles are required to purchase a rebuilder license.

Are you required to be an Alabama resident to apply for an Alabama dealer regulatory license?

Yes, the applicant must have a place of business in Alabama. Please click on the link below for a list of documents that are acceptable.  

https://revenue.alabama.gov/wp-content/uploads/2017/05/810-5-12-.01.pdf

 

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)

 

What are the insurance requirements?

Each dealer must maintain blanket liability insurance coverage for all vehicles owned or associated with the business. Minimum insurance limits are:

  • $25,000 bodily injury/person/accident
  • $50,000 combined bodily injury/accident
  • $25,000 property damage/accident or a combined single limit of $75,000/accident

(Section 40-12-392, Code of Alabama 1975)

 

Where do I get the forms to complete? (bond and insurance form)

 You can only obtain the bond and insurance form by applying for a dealer license.

 

What is the processing time for a dealer license?

Processing time is 7-14 business days from when the documents are received by our Department.

 

Can I bring my dealer license application to the MVD office and get the license the same day?

No, all documents should be uploaded in the MV license system.

 

When will my license be mailed?

 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.

 

How do I reprint my license?

To print or reprint your license, login to the MV license system with your username which is the first 7 digits of your license number without the dashes and your password, click on “My Application” then go to “Docs” and click on the printer icon, then you will click on download or reprint the license.

 

What do I need to do if I move from my licensed location?

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

 

Is there a charge for each location?

The primary location is included in the license fee. There is a $5.00 charge per additional location. (Section 40-12-395, Code of Alabama 1975)

 

Is there a fee for making a change to my regulatory license?

A $5 fee is only required when additional locations are added to the license.

 

What are the requirements for an off-site license?

    • The licensed dealer must apply for an off-site sales event license at least 10 calendar days 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)

 

Are all dealers required to be a designated agent?

All motor vehicle dealers are required to become designated agents.

 

How do I become a designated agent?

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.
  • 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.

 

  1. Access the designated agent package (ALTS). 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.
  2. When a completed package is received by the Department, the designated agent account will be set up in ALTS and a designated agent certificate will be sent to the applicant.
  3. All designated agents are required to attend a training class conducted by the department before their ALTS account is activated and they are allowed to process title applications through ALTS.
  4. The ALTS administrative account for the dealer will be activated within 3 to 5 business days upon successful completion of the ALTS training class.
  5. Upon activation, the administrator can create additional users for the dealer and submit title applications.

 

What is my password? (for dealer license renewals only)

 Passwords are not stored in our system, please click on “Reset Password” an email will be sent with a temporary password and you will be prompt to change it when you logon. You can also click on “forgot password” if security questions have been answered.

 

How do I obtain an Alabama Dealer or Manufacturer License Plate?

Dealer plates will be issued by the Department of Revenue, contingent upon proof of the appropriate privilege licenses.  Dealer plates may be requested in the Motor Vehicle License portal.

 

Who qualifies for each type of license plate?

Dealer and motorcycle dealer plates may be obtained by licensed motor vehicle dealers. Manufacturer plates may be obtained by manufacturers of private passenger automobiles, motorcycles, trucks, truck tractors, or trailers, if the manufacturing facility is located in Alabama. (Section 40-12-264, Code of Alabama 1975)

 

Are there any restrictions on the number of dealer, dealer transit and manufacturer plates that can be obtained?

Dealer and motorcycle dealer plate restrictions:

  • New motor vehicle dealers may obtain a combined total of 35 dealer and motorcycle dealer license plates
  • Used motor vehicle dealers may obtain a combined total of 5 dealer and motorcycle dealer license plates
  • Licensed new or used dealers may purchase an additional combined total of 25 dealer and motorcycle dealer license plates if they complete applications for certificates of title for 300 or more title transfers in this state during the previous dealer regulatory license year.

There are no limitations on the number of manufacturer and motorcycle manufacturer plates that can be purchased by manufacturers. (Section 40-12-264, Code of Alabama 1975)

 

What are the fees associated with the plates?

  • Dealer: $26.00
  • Dealer motorcycle: $18.00
  • Manufacturer: $26.00
  • Motorcycle manufacturer: $18.00

These fees cannot be refunded or prorated.

 

Who may legally operate vehicles displaying dealer plates?

  • Prospective purchasers, limited to 72 hours of use
  • Owners of the dealership
  • Partners of the dealership
  • Corporate officers of the dealership
  • Employees of the dealership

 

Are there limitations on the types of vehicles the plates may be used upon?

  • May be used on vehicles on temporary loan from a dealer to a customer whose vehicle is being serviced or repaired by the dealer.
  • May be used on vehicles on temporary loan to a high school for the purpose of student driver education.
  • May only be displayed on vehicles in the dealer’s/manufacturer’s inventory.
  • May be used for one payload trip only on trucks or truck tractors in a dealer’s inventory with more than 2 axles on the power unit or a GVW exceeding 26,000 pounds. Limited to 72 hours of usage.

If the dealer charges customers a fee for the uses above, dealer plates cannot be displayed on the vehicle.

Dealers may display standard plates on vehicles in a dealer’s inventory.

Ad valorem tax is not due when this occurs. (Section 40-12-264, Code of Alabama 1975)

If the dealer license is revoked or forfeited, all dealer plates shall be returned to the Department within 10 calendar days.

 

What are the prohibited uses of dealer plates?

  • Rental or lease vehicles
  • Tow trucks
  • Service trucks or vans
  • Other service vehicles Penalties
  • $100 for first violation
  • $500 for each subsequent violation
  • Willful misstatements/documents filed with erroneous information in order to obtain license plates carry a criminal penalty of a Class A misdemeanor and a civil penalty of $1,000 to be assessed by the department.
  • Violating the dealer license law is a Class A misdemeanor.
  • $5,000 civil penalty for failure to maintain a blanket motor vehicle liability insurance policy.
  • (Section 40-12-264, Code of Alabama 1975)

 

Lost, stolen, mutilated or damaged dealer plates?

If a dealer or manufacturer license plate is lost or stolen, this fact must be reported to law enforcement and a report maintained for audit purposes.

If a plate becomes mutilated to the point that it is illegible, the plate must be returned to the Department, and a replacement plate will be issued upon payment of the appropriate fee.

(Section 40-12-265, Code of Alabama 1975)

If a dealer withdrawn a vehicle from inventory, the licensed dealer shall purchase an Alabama license plate and register the vehicle.

Motor vehicle dealer, motorcycle dealer, and manufacturer license plates may not be used in lieu of regular issued license plates as a means of avoiding registration and ad valorem tax requirements.