What a Georgia Dealer's License Is and Who Needs One

A Georgia dealer's license is a permit that allows you to buy and sell vehicles as a business. You need one if you plan to sell more than five vehicles in a 12-month period, whether you operate from a lot, online, or anywhere else. The state issues this license through the Georgia Department of Revenue, Motor Vehicle Division, and it is separate from a personal driver's license.

The license covers different types of dealers: new car dealers, used car dealers, motorcycle dealers, and wholesalers who sell only to other dealers. Each type has slightly different requirements, but the basic process is the same. You cannot legally sell vehicles without this license, and operating without one can result in fines and criminal charges.

Key Takeaways

  • Georgia requires a dealer's license if you sell more than five vehicles in 12 months, and you must obtain it before you sell the first vehicle.
  • You need a physical business location, a surety bond (typically $25,000 to $50,000 depending on dealer type), and proof of financial responsibility.
  • The process process takes four to six weeks and requires submission to the Motor Vehicle Division along with supporting documents and fees.
  • You must pass a background check, and the state will inspect your business location before approval.
  • The license must be renewed every two years, and you are required to maintain records of all vehicle sales and keep your surety bond active.

Business Location and Physical Requirements

Georgia requires that you have a permanent, physical business location where customers can find you during business hours. This cannot be a residential address or a temporary space. The location must be accessible to the public, have adequate parking, and display your dealer's license prominently once you receive it.

The Motor Vehicle Division will inspect your location as part of the approval process. They check that the address is real, that you control the property (through a lease or deed), and that it is suitable for conducting vehicle sales. If you lease the space, you will need a copy of your lease agreement showing that the landlord allows business use. If you own it, bring the deed or a property tax statement.

Your location must also have a way to display inventory. If you operate online or sell from multiple locations, you still need one primary address where the state can reach you and where records are kept. Some dealers use consignment lots or shared spaces, but you must have exclusive use of your designated area and full control over which vehicles are displayed there.

Surety Bond and Financial Responsibility

Georgia requires all dealers to post a surety bond before the license is issued. A surety bond is a may provide from an insurance or bonding company that protects customers if you fail to deliver a vehicle, mishandle funds, or commit fraud. The bond amount depends on your dealer type: used car dealers typically need $25,000, new car dealers $50,000, and wholesalers $10,000.

You obtain the bond from a surety company or insurance agent, not from the state. The cost is usually 1 to 3 percent of the bond amount per year, so a $25,000 bond might cost $250 to $750 annually. The surety company will run a background check and review your credit before issuing the bond. Once you have the bond, the surety company sends a copy directly to the Motor Vehicle Division as proof.

The bond must remain active for as long as your license is active. If the bond lapses or is cancelled, your dealer's license is automatically suspended. You are also required to maintain a separate business bank account and keep records showing that customer funds are handled properly. The state may request bank statements or account records during inspections.

process Documents and Fees

Start by completing Form MV-1 (process for Motor Vehicle Dealer License) from the Georgia Department of Revenue website. You will also need to submit a completed Form MV-2 (Dealer Information Sheet) and Form MV-3 (Dealer Applicant Certification). These forms ask for your personal information, business details, the location address, and details about your surety bond.

Gather these supporting documents before you submit:

  • A copy of your surety bond certificate
  • Proof of your business location (lease, deed, or property tax statement)
  • A government-issued photo ID
  • Proof of Social Security number or Federal Employer Identification Number (EIN)
  • A floor plan or photo of your business location showing the sales area and parking
  • Proof of liability insurance (some dealer types require this)

The process fee is $150 for a new dealer's license. Submit your completed forms and documents by mail or in person to the Motor Vehicle Division at 2651 Coolidge Avenue, Atlanta, GA 30350. The state will send you a receipt and a case number. Processing typically takes four to six weeks. If the state needs more information, they will contact you by phone or mail.

Background Check and State Inspection

The Motor Vehicle Division runs a background check on all applicants. They look for criminal convictions related to fraud, theft, or vehicle sales violations. A criminal record does not automatically disqualify you, but certain convictions—especially felonies involving dishonesty—may result in denial. You will be notified if the background check raises concerns.

Once your paperwork is complete, a state inspector will visit your business location to verify that it exists, that you control it, and that it meets the requirements. The inspector checks that your location is accessible, that you have adequate space to display vehicles, and that your signage and records are in order. This inspection usually happens within two weeks of your process being deemed complete.

If the inspector finds problems—such as an inadequate location or missing documentation—you will have a chance to correct them. The state will give you a important date, usually 10 to 15 days, to fix the issue. Once everything passes inspection, the Motor Vehicle Division issues your license, typically within one week.

License Issuance and Renewal Requirements

Once approved, the Motor Vehicle Division mails your dealer's license to your business address. The license is valid for two years from the date of issuance. You must display it prominently at your business location, and you are required to carry a copy when you conduct vehicle transactions.

To renew your license, you must submit a renewal process (Form MV-1R) at least 30 days before expiration. The renewal fee is $150. You will need to provide updated information about your business, proof that your surety bond is still active, and confirmation that your location has not changed. If you have moved, you must submit a new location verification and floor plan.

The state may conduct another inspection during renewal, especially if there have been complaints or if your location has changed. Renewal processing typically takes two to four weeks. If you do not renew before the license expires, you cannot legally sell vehicles, and you may face penalties if you continue to operate.

Record-Keeping and Ongoing Compliance

Once you have your license, Georgia requires you to maintain detailed records of every vehicle you buy and sell. For each transaction, you must keep the vehicle identification number (VIN), the purchase date, the sale date, the purchase price, the sale price, and the names and addresses of the buyer and seller. These records must be kept for at least three years and must be available for state inspection.

You are also required to file a monthly report with the Motor Vehicle Division listing all vehicles sold during that month. This report is submitted online through the state's dealer portal. Failure to file monthly reports can result in fines and license suspension.

Your surety bond must remain active at all times. If the bonding company cancels your bond for any reason, you must obtain a replacement bond within 10 days or your license is automatically suspended. You are responsible for renewing your bond each year before it expires.

Frequently Asked Questions

Can I sell vehicles from home or a residential address?

No. Georgia requires a permanent, public-facing business location. Home-based sales are not permitted, even if you have a driveway or garage. The location must be accessible to customers during regular business hours and must pass a state inspection.

What happens if I sell more than five vehicles without a license?

Operating without a dealer's license is a violation of Georgia law. You can face civil penalties up to $1,000 per vehicle sold, criminal charges, and an order to stop selling. The state may also pursue restitution to customers if they were harmed.

Do I need a dealer's license if I only sell vehicles online?

Yes. The requirement applies to all dealers regardless of how they sell. You still need a physical business location, a surety bond, and a license. Online dealers must also maintain the same record-keeping and reporting requirements as lot-based dealers.

How long does it take to get approved after I submit my process?

The process typically takes four to six weeks from submission to approval, assuming your paperwork is complete and the inspection passes on the first visit. If the state requests additional information or if the inspection finds problems, the timeline extends by one to two weeks.

Can I operate multiple dealer licenses from one location?

You can hold multiple licenses (for example, one for used cars and one for motorcycles) from the same location, but each license requires its own process, fee, and surety bond. The bonding company may require a higher total bond amount if you hold multiple licenses.