How do I get my Tennessee Motor Vehicle Dealer License?
A Motor Vehicle Dealer/Franchise Dealer is anyone who is actively engaged in the business of selling, offering for sale, soliciting or advertising for sale any motor vehicle or recreational vehicle. By statute, anyone who sells more than 5 motor vehicles in the State of Tennessee within 1 calendar year, are required to be licensed by the State of TN by the Motor Vehicle Commission as a Motor Vehicle Dealer.
How to get licensed as a Motor Vehicle Dealer in the State of TN.
- Have an established place of business with proper signage. The state has specific requirements with regard to space, parking, zoning, etc. The place of business must meet the following requirements:
- Minimum of 288 Sq Ft with ADA acceptable restroom facilities
- Lot capable of holding 15 or more vehicles for sale and a minimum of 3 parking spots for customers
- Adequate Signage – Complete Dealership name must be displayed, letters must be a minimum of 8 inches in height
- Complete and submit the required TN Motor Vehicle Dealer License Application along with the required documentation listed below:
- Certificate of Liability & Garage Insurance
- Proof of Business Tax License as well as any city specific licenses
- Financial Background Disclosure and Financial Statements
- Copies of Corporate Documentation and List of Officers (If LLC or Corporation, documentation must be accompanied by a salesperson license
- Zoning Compliance Letter
- $50,000 TN Motor Vehicle Dealer License Surety Bond
- Conviction Record, if any
- Franchise Letters or Service Agreement (Franchise Dealers only)
- Copy of Labor Rate Form
A full breakdown of the requirements can be found here.
The State of TN Motor Vehicle Division has provided a list of Helpful Hints For additional questions you can contact them directly at 614-741-2711.
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