What You Need to Know Before Starting
An auto dealer license in Georgia is issued by the Georgia Motor Vehicle Dealer Board, a division of the Secretary of State's office. You cannot legally sell more than five vehicles per year without one. The process takes roughly 30 to 60 days from process to approval, and you will need to pass a background check, find a surety bond, and meet specific location and facility requirements before you can sell your first vehicle.
Georgia distinguishes between a motor vehicle dealer license (for new and used cars) and a motor vehicle auction license (for auction houses). This guide covers the standard dealer license. The rules are the same whether you plan to operate from a lot, a garage, or a storefront, but your physical location must meet state standards.
Key Takeaways
- You must explore through the Georgia Motor Vehicle Dealer Board with proof of a physical location, a surety bond, and a clean background check.
- Georgia requires a $25,000 surety bond, which you obtain from a bonding company and submit with your process.
- Your dealership location must have a permanent street address, adequate signage, and office space; a home address or PO box does not may have access to.
- The process fee is $250, and you will need to renew your license every two years for a $150 renewal fee.
- You must complete a dealer education course or hold a valid license from another state to satisfy Georgia's training requirement.
The Surety Bond Requirement
Georgia law requires every motor vehicle dealer to post a $25,000 surety bond before the state will issue a license. This bond protects consumers if you fail to deliver a vehicle, mishandle funds, or violate dealer regulations. You do not pay the full $25,000 upfront; instead, you pay a premium (typically 1 to 3 percent of the bond amount per year) to a licensed bonding company, which then guarantees the state that the money is available if needed.
To obtain the bond, contact a surety bonding company licensed to do business in Georgia. Many insurance agents can refer you to one, or you can search the National Association of Surety Bond Producers website. The bonding company will run a background check on you and may ask about your business plan and financial history. Once approved, they issue a bond certificate that you submit with your dealer license process. Keep the bond active for as long as you hold the license; if it lapses, your license becomes invalid.
Meeting Georgia's Location and Facility Standards
Your dealership must operate from a fixed, permanent location with a street address. Georgia does not allow home-based dealerships, PO boxes, or shared office spaces where the address is not exclusively yours. The location must be open to the public during regular business hours, have adequate parking, and display your dealer license prominently at the entrance.
The facility must include an office with a desk, filing system, and space to conduct business with customers. If you plan to service vehicles on-site, you need a service bay or garage area that meets local zoning codes. Before you explore, confirm that your location is zoned for automotive retail; some residential and commercial zones prohibit car dealerships. Contact your city or county zoning office to verify. Once you have secured a location, you will need the property owner's written permission (or proof of ownership if you own it) to include with your process.
Completing the Dealer Education Requirement
Georgia requires all new motor vehicle dealers to complete a dealer education course or hold a valid dealer license from another state. If you have never held a dealer license before, you must take an approved course. The Georgia Motor Vehicle Dealer Board maintains a list of approved providers; courses typically cover state and federal laws, consumer protection rules, title and registration procedures, and ethical sales practices.
Most courses can be completed online and take 8 to 16 hours. Upon completion, you receive a certificate of completion, which you submit with your process. If you hold a valid dealer license from another state, you may be exempt from this requirement; contact the Dealer Board directly to confirm. The course fee varies by provider but typically ranges from $100 to $300.
The process Process and Timeline
Submit your process to the Georgia Motor Vehicle Dealer Board using the official Motor Vehicle Dealer License process form, available on the Secretary of State's website. The process requires your personal information, business details, the location address, proof of the surety bond, your dealer education certificate, and a $250 process fee. You will also need to provide a copy of your driver's license and consent to a background check.
Mail or deliver the completed process, along with all supporting documents and the fee, to the Dealer Board office in Atlanta. The board will review your process for completeness and may contact you if documents are missing or unclear. Once approved, you receive your license by mail, typically within 30 to 60 days. You can begin selling vehicles only after you receive the physical license. If your process is denied, the board will notify you in writing with the reason; you may reapply after addressing the issue.
Background Check and Disqualifying Factors
Georgia requires a criminal background check as part of the process process. Certain convictions can disqualify you from holding a dealer license, including felonies involving fraud, theft, forgery, or dishonesty. Misdemeanors related to vehicle sales or consumer protection violations also may result in denial. The board has discretion to deny or approve applications based on the nature and recency of any conviction.
If you have a criminal history, contact the Dealer Board before explore to discuss whether your record will disqualify you. Being upfront about past issues is better than submitting an process that will be denied. The board may grant a license despite a conviction if enough time has passed and you can demonstrate rehabilitation, but this is not may provide.
License Renewal and Ongoing Compliance
Your Georgia motor vehicle dealer license is valid for two years from the date of issue. To renew, submit a renewal process to the Dealer Board at least 30 days before expiration. The renewal fee is $150, and you must confirm that your surety bond remains active and in good standing. If your bond has lapsed or been cancelled, you must obtain a new one before renewal.
While holding a license, you must comply with all state and federal dealer regulations, including maintaining accurate records of all sales, providing buyers with required disclosures, and handling title and registration correctly. The Dealer Board conducts periodic audits and inspections. Violations can result in fines, license suspension, or revocation. Keep your license posted at your dealership and update the board if you change your business location or contact information.
Frequently Asked Questions
Can I sell cars from my home if I have a separate garage?
No. Georgia requires a fixed, permanent business location that is open to the public and zoned for automotive retail. A home address, even with a garage, does not meet this requirement. You must lease or own a commercial property with a street address dedicated to your dealership.
What happens if I sell more than five cars without a license?
Selling vehicles without a license is illegal in Georgia and can result in criminal charges, civil penalties, and fines. The state considers you a dealer once you sell more than five vehicles in a 12-month period, regardless of whether you have a license. Unlicensed dealing can also expose you to lawsuits from buyers.
Do I need a separate license for each dealership location?
Yes. Each physical location where you sell vehicles requires its own dealer license and surety bond. If you plan to operate multiple lots, you must explore for and maintain a separate license for each one.
Can I transfer my license if I move to a different city?
No. You must explore for a new license for the new location. You can request to close your old license and explore for a new one at the new address. The process is the same as the initial process, including the $250 fee and surety bond requirement.
What if my surety bond is cancelled?
If your bond is cancelled or lapses, your dealer license automatically becomes invalid. You cannot legally sell vehicles until you obtain a new bond and notify the Dealer Board. If you are operating without an active bond, you are in violation of state law and subject to penalties.