What You Need to Know Before You Start
Getting an auto dealer license in Georgia means registering with the Georgia Motor Vehicle Dealer Board and meeting specific requirements set by state law. You will need to pass a written exam, post a surety bond, maintain a physical dealership location, and show proof of financial responsibility. The process typically takes four to eight weeks from the time you submit your complete process.
Georgia distinguishes between different dealer types — new car dealers, used car dealers, and wholesalers — and each has slightly different requirements. Most people starting out pursue a used car dealer license because the bond amount is lower and the exam is the same. You cannot legally sell more than five vehicles per year without a license, so this step matters if you plan to operate as a business.
Key Takeaways
- You must pass the Georgia Motor Vehicle Dealer Board exam, which covers state law, consumer protection rules, and dealer responsibilities.
- A surety bond is required before you receive your license — the amount depends on your dealer type, ranging from $10,000 for used car dealers to $50,000 for new car dealers.
- You need a physical dealership location with a street address (a home address does not count), proof of ownership or a lease, and liability insurance.
- The Motor Vehicle Dealer Board processes applications and maintains the official dealer registry; you submit your process directly to them, not through a county office.
- Your license is valid for two years and must be renewed; failure to renew or violations can result in suspension or revocation.
Register with the Georgia Motor Vehicle Dealer Board
The Georgia Motor Vehicle Dealer Board is the state agency that oversees all dealer licensing. You will submit your process to them directly. Their office is located in Atlanta, but you can request forms and submit applications by mail or in person.
Before you explore, contact the board to request the dealer process packet. This packet includes the process form, exam information, and a list of approved surety bond companies. You can reach them through the Georgia Secretary of State's office website or by phone. Having the official packet ensures you have the correct forms and current requirements, since rules change occasionally.
Pass the Motor Vehicle Dealer Exam
Georgia requires all dealer applicants to pass a written exam administered by the Motor Vehicle Dealer Board. The exam covers Georgia's Motor Vehicle Dealer and Manufacturer Licensing Law, consumer protection statutes, and your responsibilities as a licensed dealer. You will be tested on topics like odometer disclosure, title transfer procedures, warranty obligations, and record-keeping requirements.
The exam is typically 100 multiple-choice questions and you must score at least 70 percent to pass. You can take the exam at the board's office in Atlanta or at approved testing centers. Schedule your exam date before you complete your full process. Some people study using the Georgia Motor Vehicle Dealer Board's study guide, which is available from the board or online. If you fail, you can retake the exam after paying the retest fee.
Obtain a Surety Bond
A surety bond is a financial may provide that protects consumers if you violate dealer laws or fail to meet your obligations. Georgia requires every dealer to post a bond before receiving a license. The bond amount depends on your dealer type: $10,000 for used car dealers, $25,000 for new car dealers, and $50,000 for new car dealers selling more than 100 vehicles per year.
You purchase the bond from a surety bond company, not from the state. The Motor Vehicle Dealer Board provides a list of approved surety companies in your process packet. Contact one of these companies, provide proof of your exam passage and your business information, and they will issue the bond. The cost is typically 1 to 3 percent of the bond amount per year, so a $10,000 bond might cost $100 to $300 annually. Once you have the bond, the surety company sends proof directly to the Motor Vehicle Dealer Board.
find a Physical Dealership Location
Georgia law requires you to maintain a physical dealership location with a street address where customers can visit during business hours. A home address, a P.O. box, or a shared office space without dedicated dealer space does not meet this requirement. You need a location that is clearly identifiable as a car dealership — this can be a lot, a garage, or a storefront, but it must be your own or leased in your business name.
Obtain either a deed or a lease agreement for your location and include a copy with your process. If you are leasing, the lease must be in your business name and must allow you to operate a car dealership. Some landlords restrict commercial use, so confirm this before signing. You will also need proof of liability insurance for your dealership location, which your insurance agent can provide on a certificate of insurance.
Complete and Submit Your process
Once you have passed the exam, secured the surety bond, and arranged your dealership location, you are ready to submit your full process to the Motor Vehicle Dealer Board. The process packet includes forms requesting your personal information, business structure, dealership address, exam results, surety bond information, and proof of insurance.
Include copies of your exam passing score, the surety bond certificate, your lease or deed, your liability insurance certificate, and any other documents the board requests. Submit the complete packet by mail or in person to the Motor Vehicle Dealer Board office. Incomplete applications are returned, which delays your license. Once the board receives your process, they review it for completeness and then issue your license, usually within four to eight weeks.
Understand Your Ongoing Responsibilities
After you receive your license, you must comply with Georgia dealer laws to keep it active. This means maintaining accurate records of all vehicle sales, disclosing the odometer reading on every title, providing required warranties, and keeping your surety bond in force. The board conducts inspections and can investigate complaints from customers or other dealers.
Your license is valid for two years. You must renew it before expiration by submitting a renewal process and paying the renewal fee. If you change your dealership location, add a new location, or change your business structure, you must notify the board. Violations of dealer law — such as selling vehicles without proper title transfer, misrepresenting vehicle condition, or failing to maintain records — can result in license suspension or revocation.
Frequently Asked Questions
Can I sell cars from my home address?
No. Georgia requires a physical dealership location with a street address where customers can visit during business hours. Your home address does not meet this requirement, even if you have a driveway or garage. You must lease or own a separate commercial space.
What happens if I fail the dealer exam?
You can retake the exam after paying the retest fee. There is no waiting period between attempts. Most people who fail study the board's study guide or take a prep course before retaking the test. You do not need to reapply or resubmit other documents — just schedule the next exam date.
How much does the surety bond cost?
The cost depends on the bond amount and the surety company you choose. For a $10,000 bond (used car dealers), expect to pay $100 to $300 per year. The surety company quotes the premium based on your credit and business history. This is an annual cost, not a one-time fee.
Do I need a business license before I explore for a dealer license?
Georgia does not require a state business license, but you may need a local business license or occupancy permit from your city or county. Check with your local government before opening your dealership. The dealer license itself is your state authorization to sell vehicles.
What is the difference between a used car dealer and a new car dealer license?
A used car dealer sells only used vehicles; a new car dealer sells new vehicles and may also sell used vehicles. New car dealers must be franchised by a manufacturer and have higher bond requirements. If you are starting out, a used car dealer license is the simpler path and covers what most independent dealers do.