Have you ever been to your local library? If you want to check out a book from the library, you need to have a library card. Getting a library card requires you to provide information like picture ID, proof of residency, and current address. Once you have your card, you qualify for all the perks the library offers. This is similar to getting your dealer license in order to attend auto auctions and buy or sell vehicles.
Although Big Valley Auto Auction isn’t a place to check out books, we are a place where you can buy and sell vehicles. However, to do so, you’ll need to have a dealer license.
In this article, you’re going to learn what you need to get your dealer license and the process you must complete.
After reading this article, you’ll be prepared to apply for, and obtain, your dealer license.
What Do I Need to Get My Dealer License?
Before you can get your dealer license, there are a few things you’ll need to have ahead of time.
Physical Dealership Location
Your dealership needs a physical location that meets the state’s premises requirements. This location will serve as your base of operations for buying, selling, or exchanging motor vehicles.
Dealer Surety Bond
You must obtain a dealer surety bond in the amount of $50,000. This bond acts as a financial guarantee and ensures compliance with regulations.
How Do I Apply for My Dealer License?
Once you have your physical location and dealer surety bond in check, you’ll need to complete the 3-step process to get your dealer license.
Submit Application
The first step to obtaining your dealer license is to submit your application. The Texas Department of Motor Vehicles will handle the licensing process.
Fingerprinting
As of September 1st, 2022, certain new applicants and existing dealer license holders are required to be fingerprinted. This applies to the following dealer types:
- Franchised motor vehicle dealers
- Independent motor vehicle dealers
- Wholesale motor vehicle dealers
- Motorcycle dealers
- House trailer dealers (Travel trailers and towable recreational vehicles)
- Trailer or Semi-trailer dealers
- Independent mobility motor vehicle dealers
Pay the License Fee
The last step of the application process is paying the $700.00 dealer license fee. The licenses are issued for two-year terms.
What Types of Dealer Licenses are Available?
There are 3 dealer licenses you can apply for: Franchise, Independent, or Salvage dealer license.
Franchise Dealer
A franchise dealer license is necessary to sell new vehicles.
Independent Dealer
An independent dealer license is a basic dealer’s license that allows you to buy, sell or exchange the type of used vehicle for which the general distinguishing number (GDN) is issued.
Salvage Dealer
A salvage dealer license allows you to buy or sell more than 5 salvage or nonrepairable motor vehicles in a calendar year. It also allows you to repair or rebuild more than 5 salvage motor vehicles in the same calendar year.
Am I Ready to Get My Dealer’s License?
Just like getting a library card to check out books from a library, obtaining your dealer license to attend auto auctions requires you to complete a specific process.
If you’re planning on applying for your dealer license or you know someone who plans to do so, you can use this article as a checklist to help you prepare accordingly.
Once you get your dealer license and decide you'd like to use it at Big Valley Auto Auction, click the button below to speak with our dealer registration specialist to get you registered.
Not ready to talk? That’s okay! First, learn more about what it’s like to buy and sell at Big Valley Auto Auction by clicking the image below:
