License To Sell Used Vehicles
http://www.marylandmva.com/AboutMVA/INFO/27100/27100-02T.htm
The questions and answers provided below relate to issuing, renewing, changing and correcting a business license for a used vehicle dealer. If you are unsure about the type of license for which you should apply, please refer to the Summary of Dealer Types.
Each of the following procedures is separately discussed below in answer to a commonly asked question. Either scroll down to the appropriate question and answer, or click on the procedure in which you are interested.
Issuing a New License Adding a New Location Renewing a License Changing Information on the License Correcting Information on the License Requesting a Duplicate License Obtaining MVA Forms Going Out of Business Fees: Fee information is available on a separate schedule of fees. Contact Information:
MVA
Business Licensing and Consumer Services 6601 Ritchie Highway, N.E. Glen Burnie, MD 21062 Email: BusinessLicensing@mdot.state.md.us
MVA Warehouse
150 Blades Lane, Suite H Glen Burnie, MD 21061 Hours of Operation: Monday – Friday (8am to 4pm) Email: mvawarehouse@mdot.state.md.us
For telephone questions: MVA Customer Service Center:
TTY/Hearing Impaired: Out-of-State:
1-800-950-1MVA(1682)
1-800-492-4575 1-301-729-4550
Procedural Information:
How do I obtain a business license from the MVA authorizing me to establish a new dealership for selling used vehicles?
Contact the Business Licensing and Consumer Services (BL&CS) Unit and indicate that you are interested in beginning a new used vehicle dealership. The unit will send you a packet of forms to be completed, as well as instructions for other actions that you must take in order to be licensed to sell used vehicles. Typically, you must submit the following documentation:
Application for Vehicle Dealer’s License – this form must be fully completed (front and back) and signed and dated by all dealership officers, partners, or owners (licensees). Be sure to include your Federal Employer Identification Number (FEIN) and the Social Security Numbers of all officers/partners/owners. Zoning Approval Form - A zoning official from the jurisdiction where the dealership will be located must sign the form confirming that the property is zoned appropriately for a used vehicle dealership. Surety Bond of Vehicle or Trailer Dealer - This form is proof of your insurance coverage. It must include the full name of the dealership, including any “trading as” name. It also must include the full names and signatures of all officers, partners, and/or owners, exactly as shown on the application. Your bonding company must stamp the form with its Seal of Surety and a representative (usually the company’s lawyer) must sign the form. Power of attorney - The company providing the Surety Bond will provide this form. Proof of Workman’s Compensation coverage or exemption from coverage requirements - If you have Workman’s Compensation insurance, only information about the policy is required. The information must be recorded on the Application for Vehicle Dealer’s License and on the Insurance Information form. If you are exempted from having to have Workman’s Compensation coverage, then one of the following sets of documents must be submitted:
a copy of your Application for Certificate of Compliance to the Workman’s Compensation Commission and a completed and signed Exclusion Form OR a copy of the Certificate of Compliance issued to you by the Workman’s Compensation Commission. Criminal background checks - A Maryland criminal background check is required for all officers, partners, owners (licensees) and others who have a financial interest in the dealership. In addition, if any of the licensees or other person with a financial interest in the dealership resides outside of Maryland, or has lived in Maryland for less than 1 year, then their current/former state of residence also must conduct a criminal background check. A background check from a private company will be accepted if the Maryland State Police licenses the company as a Private Investigation Agency. The results of these other state criminal background checks must be submitted. Trader’s License (copy) - This License can be obtained from the Circuit Court in the jurisdiction where the dealership is located. Business registration letter - This document can be obtained from the Maryland State Department of Assessments and Taxation (SDAT). It verifies that your dealership is licensed to do business in the State of Maryland. All dealer applicants must register with the SDAT, even if they are based in another state. Both corporate and trading names must be registered. You may use the printout that can be obtained from the SDAT website. Automotive Repair Facility Contract – This form is used to certify that you will have a repair facility within 5 miles of each dealership location. Insurance Information Form – This form certifies that you have vehicle liability insurance for the vehicles you will be selling and, if required, Workman’s Compensation insurance for your employees. Other forms – Additional forms may be needed depending upon your situation:
Letter of Good Standing – If your dealership is licensed in another state and you are now applying to open a new location in Maryland, you will need to obtain this letter from the Maryland Department of Assessments and Taxation. The letter indicates that your business is operating in compliance with state laws and requirements. Use and Occupancy Permit – This form is needed if you will be using a trailer as an office or the local zoning board requires that you obtain the Permit. Dealer Orientation Request – You are urged to participate in an orientation given by the MVA. As part of the BL&CS review process, an MVA investigator will visit your proposed dealership location to confirm that it meets all location requirements. Once your dealer’s license has been approved, the BL&CS will contact you about how to pay for and obtain the license, one free salesman’s license, the interchangeable (dealer’s) tags needed for customers to test drive your vehicles, and other forms and items needed to operate a used vehicle dealership.
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How do I obtain the MVA’s authorization to expand my used vehicle dealership by adding another sales location? Contact the Business Licensing and Consumer Services (BL&CS) Unit and indicate that you are interested in opening a new dealership location in Maryland. The unit will send you a packet of forms to be completed, as well as instructions for other actions that you must take in order to open the new facility. Typically, you must submit the following documentation:
Application for Wholesale Vehicle Dealer’s License – this form must be fully completed (front and back) and signed and dated by all dealership officers and corporate officers. Zoning Approval Form - A zoning official from the jurisdiction where the new facility will be located must sign the form confirming that the property is zoned appropriately for a used vehicle dealership. Proof of Workman’s Compensation coverage or exemption from coverage requirements - If you have Workman’s Compensation insurance, only information about the policy is required. The information must be recorded on the Application for Vehicle Dealer’s License and on the Insurance Information form. If you are exempted from having to have Workman’s Compensation coverage, then one of the following sets of documents must be submitted:
a copy of your Application for Certificate of Compliance to the Workman’s Compensation Commission and a completed and signed Exclusion Form. OR a copy of the Certificate of Compliance issued to you by the Workman’s Compensation Commission. Trader’s License (copy) - This License can be obtained from the Circuit Court in the jurisdiction where the dealership is located. Automotive Repair Facility Contract – This form is used to certify that you will have a repair facility within 5 miles of each dealership location. Insurance Information Form– This form certifies that you have vehicle liability insurance for the vehicles you will be selling and, if required, Workman’s Compensation insurance for your employees. Other Forms – Additional forms may be needed depending upon your situation:
Rider to the Surety Bond of Vehicle or Trailer Dealer – A rider to your Surety Bond (or a new bond) is needed if the bond amount or other information has changed. Power of Attorney – This form is required only when a rider or new Surety Bond is submitted. Criminal background checks – A new criminal background check is needed if the original background check is more than 5 years old. Business registration letter – If the added location will be operating under a different trading name, you must submit proof that the new trading name has been registered with the Maryland Department of Assessments and Taxation (SDAT). You may submit a letter from SDAT or the printout that can be obtained from the SDAT website. See Issuing a New License for more details. Use and Occupancy Permit – This form is needed if you will be using a trailer as an office and the local zoning board requires that you obtain the Permit. As part of the BL&CS review process, an MVA investigator will visit your proposed new location to confirm that it meets all location requirements. Once the dealer’s license for the new location has been approved, the BL&CS will contact you about how to pay for and obtain the license, the interchangeable (dealer’s) tags needed for customers to test drive your vehicles, and other forms and items needed to operate the new location.
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How do I renew my used vehicle dealer’s license and the interchangeable tags (dealer tags) issued to the dealership? The Business Licensing and Consumer Services (BL&CS) Unit will mail you a renewal packet about 60 days prior to the expiration date of your licenses. If you do not receive a renewal packet, please contact the BL&CS.
Complete the Business License Renewal form and submit it to the BL&CS, along with all applicable fees and, as applicable, the documents listed below. You must submit these items at least 15 working days prior to your license expiration date. Note that the MVA will assume your dealership is going out of business if you do not request renewal before your expiration date.
Business License Renewal form Copies of flag releases – You will be notified of any outstanding flags with the renewal packet. Surety Bond rider – This is required only if changes in your Surety Bond have been made. Power of Attorney - This form is required only when a rider or a new Surety Bond is submitted. Explanation of MVA administrative actions – If any administrative actions have been taken or are pending against your dealership, you will be asked to submit a written statement. Notice of criminal convictions – If any owners, officers, or persons with a financial interest in your dealership have been convicted of a criminal offense, you will be asked to submit a written statement explaining the situation. Agreement with a vehicle buying or referring service – If you have reached any agreements with one of these services, you will be asked to submit a copy of the agreement. Once your renewal request has been approved, the BL&CS will mail a new dealer’s license to you.
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What do I have to do if the name or address of me business has changed, or if there has been a change in the officers associated with the dealership? Maryland law requires that you report all changes affecting your dealership license to the MVA within 30 days after the change occurs. If the change occurs during your license renewal period, you may indicate the change on the Business License Renewal form that will be sent to you prior to the license expiration date. Otherwise, contact the Business Licensing and Consumer Services (BL&CS) Unit either by phone or by mail to report the changes.
The BL&CS will send you a packet of forms to be completed, as well as instructions for other actions that you must take in order to request the change. The documents required vary by the type of change involved.
Once your change request has been approved, the BL&CS will mail you a new dealer’s license, a new salesman license and/or corrected registration cards for your interchangeable tags.
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How do I correct information that appears on my used vehicle dealer’s license, salesman license and/or interchangeable tag registration cards? Contact the Business Licensing and Consumer Services (BL&CS) Unit, as soon as possible, either by phone or by mail and report the corrections needed. The unit will send you a packet of forms to be completed, as well as instructions for other actions, if any, that you must take in order to request the corrections.
Once your correction request has been approved, the BL&CS will mail you a new dealer’s license, a new salesman license and/or corrected registration cards for your interchangeable tags, if these items needed correction. Some corrections will not require the reprinting of these documents (e.g., your dealership phone number).
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How do I obtain a duplicate dealer’s license? Contact the Business Licensing and Consumer Services (BL&CS) Unit either by mail or in person and request an Application for Duplicate Vehicle Dealer’s and/or Salesperson’s License. Written requests for duplicate dealer’s licenses will be accepted when submitted on company letterhead and accompanied by the appropriate fee.
Once your duplicate request has been approved, the BL&CS will mail the duplicate license.
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How do I obtain MVA forms for use in my dealership? You may obtain a variety of forms needed to operate your dealership from the MVA’s Warehouse. The forms should be ordered in advance. The request may be submitted by email or fax and must be on company letterhead and include the following information:
Company address Phone number Contact person Dealer license number Form number requesting Form title Quantity requested Pick up or delivery If you will be picking up your request, please indicate the date and time for the pick up. The deliveries will be made by UPS and will not be made to P.O. boxes.
If the forms are not available when you place the order, the MVA Warehouse will notify you as to when they will be available. You will not have to resubmit the order. It will be filled when the forms are available.
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What do I have to do if my used vehicle dealership is going out of business? If your dealership is forced out of business, the Business Licensing and Consumer Services (BL&CS) Unit will contact you. Otherwise, contact the BL&CS Unit and indicate that you are going out of business. The BL&CS will advise you which materials must be returned to the MVA. Typically, you must return the following items which are considered State properties:
Used Vehicle Dealer License (existing) - This document is often referred to as a “wall license”. Vehicle Sales License – Owner (existing) - This document is often referred to as a “gratis salesman license”. Interchangeable tags - All tags must be returned to an MVA branch office. The receipts showing that you returned the tags then must be submitted to the BL&CS. Unused temporary registration plates (cardboard) - If some of these items are not returned, you must submit a statement indicating which items are missing. Unused Temporary Registration Permits - If some of these items are not returned, the dealer must submit a statement indicating which items are missing. Unused MVA Odometer Disclosure forms - If some of these items are not returned, the dealer must submit a statement indicating which items are missing. Unused Dealer’s Bill of Sale and/or Reassignment for New and Used Vehicles - If some of these items are not returned, the dealer must submit a statement indicating which items are missing. Paid Salesman Licenses – If you employed salesmen, then their licenses, issued by the MVA, must be returned.