What you need to do to become a licensed dealer in Georgia

To get a Georgia dealer's license, you must register with the Georgia Motor Vehicle Dealer Board, pass a background check, complete a dealer education course, and meet financial requirements set by the state. The process takes four to eight weeks from process to approval, depending on how quickly you gather documents and the Board's current workload.

Georgia requires separate licenses for different dealer types: a used car dealer license, a new car dealer license, a motor home dealer license, and others. Most people starting out pursue the used car dealer license, which allows you to buy and sell used vehicles. You cannot legally sell cars in Georgia without this license, and operating without one carries fines and potential criminal charges.

Key Takeaways

  • You must complete a Georgia-approved dealer education course before the Motor Vehicle Dealer Board will process your process.
  • The process requires a surety bond (typically $25,000 to $50,000 depending on your dealer type), proof of a physical business location, and a background check with no disqualifying convictions.
  • You need a federal Employer Identification Number (EIN) from the IRS and a Georgia business license before explore to the Motor Vehicle Dealer Board.
  • The Motor Vehicle Dealer Board charges a non-refundable process fee and a separate license fee once approved; costs vary by dealer type.
  • You must renew your license every two years and maintain compliance with Georgia's dealer laws or risk suspension or revocation.

Complete a Georgia-approved dealer education course

Before you submit an process to the Motor Vehicle Dealer Board, you must finish a dealer education course approved by the Board. This course covers Georgia's motor vehicle dealer laws, consumer protection rules, odometer disclosure, title transfer procedures, and ethical business practices. The course is not optional—the Board will not process your process without proof of completion.

Several providers offer these courses online and in-person. The course typically takes 8 to 16 hours to complete, depending on the provider. Once you finish, you receive a certificate of completion that you submit with your process. Keep a copy for your records; the Board may ask for proof later during renewal or if questions arise about your compliance.

Register your business and get an EIN

You need a legal business entity before explore for your dealer license. You can form a sole proprietorship, partnership, LLC, or corporation—the choice depends on your situation and tax planning, so consider speaking with an accountant or attorney. Register your business with the Georgia Secretary of State's office through their website.

Next, obtain a federal Employer Identification Number (EIN) from the Internal Revenue Service. You can explore for an EIN online at the IRS website at no cost; approval is when ready. You will need your EIN to open a business bank account, file taxes, and complete your dealer license process. You also need a Georgia business license from your city or county, which you can obtain through your local business licensing office.

find a surety bond and physical location

Georgia requires all motor vehicle dealers to carry a surety bond. The bond amount depends on your dealer type: a used car dealer typically needs a $25,000 bond, while a new car dealer may need $50,000 or more. The bond protects consumers if you fail to transfer titles, misrepresent vehicles, or violate dealer laws. You purchase the bond from a surety company, and it costs roughly 1 to 3 percent of the bond amount per year.

You must also have a physical business location in Georgia where customers can find you during business hours. This can be a lot, storefront, office, or other fixed location—it cannot be a residential address or a temporary space. The Motor Vehicle Dealer Board will verify the location during the process process. Have your lease or deed ready to show proof of occupancy.

Submit your process to the Motor Vehicle Dealer Board

Once you have completed your dealer education course, registered your business, obtained your EIN and Georgia business license, secured your surety bond, and identified your physical location, you are ready to explore. The Motor Vehicle Dealer Board accepts applications online through their website or by mail.

Your process packet must include your completed process form, proof of dealer education course completion, a copy of your surety bond, proof of your physical business location (lease or deed), your EIN documentation, your Georgia business license, and a government-issued photo ID. The Board charges a non-refundable process fee (amount varies by dealer type) at the time you submit. You will also pay a separate license fee once approved.

The Board will conduct a background check as part of the process review. Certain convictions—including fraud, theft, forgery, or crimes involving dishonesty—can disqualify you. If you have a criminal history, contact the Board before explore to understand whether your record will prevent approval.

Wait for approval and receive your license

After you submit your process, the Motor Vehicle Dealer Board reviews it for completeness and accuracy. This process typically takes four to eight weeks. The Board may contact you to request additional information or clarification. Respond promptly to any requests; delays on your part extend the timeline.

Once approved, you receive your dealer license by mail. Your license is valid for two years from the date of issuance. You can begin buying and selling vehicles once you have your license in hand. Keep your license posted at your business location where customers can see it.

Maintain compliance and renew your license

Operating as a licensed dealer means following Georgia's motor vehicle dealer laws every day. You must maintain accurate records of all vehicle purchases and sales, disclose the odometer reading on every vehicle, transfer titles correctly and on time, and treat customers fairly. The Motor Vehicle Dealer Board can inspect your records and your location without notice.

Your license expires two years after issuance. You must renew it before it expires or you cannot legally sell vehicles. Renewal requires paying the renewal fee, confirming that your surety bond is still active, and verifying that your business location is still valid. If you fail to renew on time, you will need to reapply as a new applicant, which means repeating the entire process.

Frequently Asked Questions

Can I sell cars from home or a residential address?

No. Georgia requires a fixed, commercial business location where customers can visit during business hours. A residential address, even if you own the property, does not meet this requirement. You must lease or own a commercial lot, storefront, or office space.

What happens if I sell a car without a license?

Selling vehicles without a dealer license in Georgia is illegal. You can face fines, civil penalties, and criminal charges. The state also pursues restitution to consumers harmed by unlicensed dealers. If you are caught, you may be barred from obtaining a license in the future.

Do I need a separate license for each location?

Yes. If you operate dealerships at more than one physical location, you must obtain a separate license for each location. Each location needs its own surety bond and must meet all the same requirements as your primary location.

How much does the whole process cost?

Costs vary by dealer type and surety company. Expect to spend $300 to $1,000 on the process and license fees combined, $250 to $750 on the dealer education course, and $250 to $1,500 per year on the surety bond. You may also have costs for business registration, an EIN, and a Georgia business license, though many of these are free or under $100.

What if my process is denied?

The Motor Vehicle Dealer Board will tell you the reason for denial in writing. Common reasons include a disqualifying criminal conviction, incomplete process materials, or failure to meet financial or location requirements. You can reapply once you have addressed the issue, but you cannot reuse the process fee.