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How do I get a license to sell cars online ?

How do I get a license to sell cars online ?
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Answered in 2 hours by:
11/6/2012
WiseOwl58
WiseOwl58, Attorney
Category: Business Law
Satisfied Customers: 3,871
Experience: Senior Associate at White & Case LLP
Verified

The RMV does not license Automobile Dealers. Massachusetts General Law grants licensing authority to the cities & towns.

 

Contact the local city/town licensing board.

 

There are three levels of dealer licensing in Massachusetts:

  • Class I: This is for a dealer selling new vehicles. To obtain a Class I license, you need to meet the following qualifications:

 

  • Be an agent of a new vewhicle manufacturer or have a contract with a manufacturer to sell new vehicles.
  • Sell used vehicles as an incidental or secondary part of the business.
  • Have repair facilities on site that allow repairs to vehicles under warranty.
  • Class II: This is for used auto dealers. To obtain a Class II license, you need to post a $25,000 bond that will cover you in case judgment is brought against you for a variety of resons, including failure to deliver a title, selling stolen vehicles, failure to disclose actual mileage or any attempts to cheat or misrepresent proper facts about the vehicle to its buyer.
  • Class III: This is for junk auto dealers and allows the buying selling of cars and trucks for parts and salvage.

To open a dealership, you must also have a separate business office on the premises, maintain a record book for used cars approved by the Registry of Motor Vehicles, and post a sign displaying the type of business.

Applying for an Auto Dealer License

As part of the application process, dealer applicants must provide all of the following:

  • Zoning Application Form.
  • Articles of Organization.
  • Franchise Agreement(s) (If applying for a Class I dealer license).
  • Purchase and Sale Agreement.
  • Lease Agreement (if applicable).
  • Worker's Compensation Insurance Affidavit.
  • Surety Bond in the amount of $25,000 (if applying for a Class II License).
  • Affidavit (if applying for a Class II wholesale license).
  • Letter from seller: if the license or property is being purchased from a current dealer and license holder, the seller needs to submit a letter stating he or she has been satisfied with the sale and agrees to release the license to the buyer.

Cost of a Dealer License

Municipalities can set the price for auto dealer licensing, as long as it does not exceed $200 per year.

 

Good luck to you. I wish you all the best.

WiseOwl58
WiseOwl58, Attorney
Category: Business Law
Satisfied Customers: 3,871
Experience: Senior Associate at White & Case LLP
Verified
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Please review the answer I have given you and rate it a 3, 4 or 5.

Please let me know if you have any other questions. Just put my name---Wise Owl 58--- in the first line and I will get it and respond.

All the best.
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Elaine:

Please review the answer I have given you and rate it a 3, 4 or 5.

Please let me know if you have any other questions. Just put my name---Wise Owl 58--- in the first line and I will get it and respond.

All the best.
Ask Your Own Business Law Question
Elaine:

Please review the answer I have given you and rate it a 3, 4 or 5.

Please let me know if you have any other questions. Just put my name---Wise Owl 58--- in the first line and I will get it and respond.

All the best.
Ask Your Own Business Law Question
Customer reply replied 5 years ago

I am not sure what you mean by rating 3,4,5 I rated your advice as excellent . When I tried to rate you again I was prompted that I already rated you. If I am missing something let me know
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Category: Business Law
Satisfied Customers: 3,871
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