Getting a Dealer’s License in Pennsylvania

If you want to open a car dealership in Pennsylvania, you will need to obtain a dealer’s license from the Pennsylvania Department of Transportation (PennDOT). Here is a step-by-step guide to getting a dealer’s license in Pennsylvania:

  1. Determine the type of license you need: There are several different types of dealer’s licenses in Pennsylvania, including new car dealer, used car dealer, motorcycle dealer, and recreational vehicle dealer. You will need to apply for the type of license that corresponds to the type of vehicles you want to sell.
  2. Meet the requirements: To be eligible for a dealer’s license in Pennsylvania, you must meet the following requirements:
  • Be at least 18 years old
  • Have a valid driver’s license
  • Have a fixed place of business that is open to the public during normal business hours
  • Have a salesroom with an area of at least 240 square feet
  • Have a secure storage area for vehicles
  • Have a sign visible from the street displaying the dealership’s name
  • Have liability insurance coverage of at least $50,000 per occurrence
  1. Complete the application process: To apply for a dealer’s license in Pennsylvania, you will need to complete the following steps:
  • Fill out the appropriate application form, which can be obtained from the PennDOT website or a local PennDOT office
  • Submit the application form along with the required documents, such as proof of insurance and a certificate of zoning compliance
  • Pay the applicable fees, which vary depending on the type of license you are applying for
  1. Attend a dealer education seminar: Before you can receive your dealer’s license, you must attend a dealer education seminar. These seminars are held by the PennDOT and are designed to educate dealers on the laws and regulations that apply to the automotive industry in Pennsylvania.
  2. Obtain a surety bond: In addition to obtaining a dealer’s license, you will also need to obtain a surety bond. A surety bond is a type of insurance that protects consumers in the event that you fail to meet your obligations as a dealer, such as failing to deliver a vehicle or providing false information about a vehicle’s condition. The amount of the bond will depend on the type of license you have and the number of vehicles you sell in a year.

Overall, getting a dealer’s license in Pennsylvania requires fulfilling a number of requirements and completing a number of steps. By following this process and complying with all applicable laws and regulations, you can obtain the necessary license to open and operate a successful car dealership in the state.