What a Georgia dealer's license is and who needs one

A Georgia dealer's license lets you 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're opening a lot, running an online business, or buying and reselling cars part-time. The Georgia Department of Revenue issues these licenses, and they're separate from your personal driver's license.

The license covers different dealer types: new car dealers, used car dealers, wholesale dealers (who sell only to other dealers), and auction operators. Each type has slightly different requirements, but the basic process is the same. You cannot legally sell vehicles without one, and operating without a license 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 get it from the Department of Revenue, not your local tag office.
  • You must have a physical business location in Georgia, a surety bond (usually $25,000 to $50,000 depending on dealer type), and a sales manager on staff who holds a dealer's license or sales manager's license.
  • The process process takes roughly four to eight weeks after you submit all documents, and you cannot legally sell vehicles until your license arrives.
  • You will need proof of ownership or a lease for your business location, a completed dealer process form, and documentation showing your sales manager's license status.

The surety bond requirement and how to get one

Georgia requires all dealers to carry a surety bond before the state will issue a license. The bond amount depends on your dealer type: used car dealers typically need $25,000, new car dealers need $50,000, and wholesale dealers need $10,000. The bond protects consumers if you fail to transfer titles properly or commit fraud.

You purchase a surety bond from an insurance or bonding company, not from the state. Call local insurance agents or search online for "surety bond Georgia dealer" to get quotes. 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. You'll need to provide the bonding company with your business information and personal financial details before they issue the bond. Once you have it, you'll submit the bond certificate with your license process to the Department of Revenue.

Finding a sales manager and understanding their role

Georgia law requires at least one licensed sales manager on your dealership staff before you can operate. This person doesn't have to be you, but they must hold either a dealer's license or a sales manager's license issued by the state. If you already have a dealer's license, you can serve as your own sales manager. If not, you'll need to hire someone who holds one of these licenses.

A sales manager oversees vehicle sales and ensures compliance with state law. They're responsible for reviewing contracts, managing paperwork, and training sales staff. If you're starting out and don't have a licensed manager on hand, you have two options: hire someone who already holds a sales manager's license, or have a potential manager complete the sales manager licensing process first. The sales manager license requires passing a written exam through the Department of Revenue and costs around $50 to $100.

Preparing your business location and documentation

You must have a physical business address in Georgia where you conduct sales. This can be a lot, a showroom, an office, or even a small storefront—but it must be a real location where customers can find you and where you keep records. A home-based business or a mailbox service does not meet this requirement. You'll need to provide proof of your location: either a lease agreement or a deed showing you own or rent the space.

Gather these documents before you start your process: your business location proof (lease or deed), the surety bond certificate, your sales manager's license documentation or proof that your manager holds a dealer's license, a completed dealer process form (available on the Georgia Department of Revenue website), and your personal identification. If you're operating as a corporation or LLC, you'll also need your business registration documents from the Georgia Secretary of State. Having everything ready before you submit speeds up the process.

Submitting your process to the Department of Revenue

Submit your completed process and all supporting documents to the Georgia Department of Revenue's Motor Vehicle Division. You can mail the packet to their office in Atlanta or check their website to see if they accept online submissions or in-person appointments. Include a cover letter listing what you're submitting so the reviewer can confirm everything is there.

The Department of Revenue will review your process for completeness and accuracy. If anything is missing or unclear, they'll contact you and ask you to resubmit. Once they approve your process, they'll issue your dealer's license, which typically arrives within four to eight weeks. You cannot legally sell vehicles until you have the license in hand. If you're in a hurry, call the Motor Vehicle Division to ask about expedited processing, though this is not always available.

What happens after your license arrives

When your dealer's license arrives, keep it in a safe place at your business location. You're required to display it or have it available for inspection. Your license is valid for one or two years depending on your dealer type, and you'll need to renew it before it expires. Renewal requires submitting a renewal process, proof that your surety bond is still active, and a renewal fee.

Once licensed, you must follow Georgia's dealer regulations: maintain a physical location, keep sales records for at least three years, transfer titles within 30 days of sale, and may support your sales manager stays licensed. If your sales manager leaves, you must hire a replacement before you can continue selling. Violations can result in license suspension or revocation, so it's worth understanding the rules that explore to your specific dealer type.

Frequently Asked Questions

Can I sell vehicles from my home or a parking lot without a physical storefront?

No. Georgia requires a permanent business location where customers can reach you and where you keep records. A parking lot alone or a home address does not meet this requirement. You need at least a small office or lot with a business address and lease or ownership documentation.

What if I only sell a few cars a year—do I still need a license?

If you sell more than five vehicles in a 12-month period, you need a license. Selling fewer than five per year means you don't need one, but once you cross that threshold, you must stop selling until you obtain a license. It's safer to get licensed early if you plan to sell regularly.

How much does a Georgia dealer's license cost?

The license process fee varies by dealer type but is typically $50 to $150. The larger cost is the surety bond, which runs $250 to $750 per year depending on the bond amount required for your dealer type. Budget for both when planning your startup costs.

Can someone else be my sales manager, or do I have to do it myself?

Someone else can be your sales manager as long as they hold a dealer's license or sales manager's license. You don't have to hold a license yourself if you hire a licensed manager, though many owner-operators get their own dealer's license to fill this role.

How long is a Georgia dealer's license valid?

Most dealer's licenses are valid for one or two years, depending on your dealer type. You'll receive the expiration date when your license arrives. Renewal requires submitting a renewal process, proof of an active surety bond, and a renewal fee before the expiration date.