Maryland Auto Dealer License: Step-by-Step Guide
How to get a Dealer License in the state of Maryland... the biggest challenge for the average person is the Car Lot minimum location size. That stops most people dead in there tracks. So, rather than settle for a wholesale dealer license (which limits your ability to retail cars to the public), you may consider setting up a Georgia or other state as your retail license. This allows you to sign and to re-asign your own titles.
Download the Application Here:
Obtain a Permanent Business Location
-Wholesale -Can operate an auhorized commercial location with or without a sign, but is not required.
If using a home wholesale office, it must be located in your personal domicile (where you live – the address on your drivers’ license) and must be accessible without going through, past, or near any sleeping quarters or other general living areas.
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-Retail
Retail Sales Requirements:
1. Location must be fully visible from an approved street or highway that is
accessible to the public.
2. Location shall be of size to adequately and safely permit the display of a
minimum of ten (10) vehicles AND space for customer parking.
3. Location must be fully lighted
4. Display and parking area shall be adequately surfaced (i.e. paved, crushed
stone, etc. NOT dirt or grass)
5. The retail sale of vehicles must be the only or principal business conducted
from the location (see Maryland Vehicle Law 15.304(A)(i) ).
6. Exterior signs must be in place
7. Repair Facility or Contract (CS-125) – If you do not have repair facilities at
the location, you must provide a contract with a repair facility within 5 miles of your
dealership. The contract must include Maryland State Police (MSP) inspection if
applicable.
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.
As part of the Business Licensing review process prior to becoming licensed, an investigator will go to your place of business and inspect your location to ensure compliance with the Maryland Code of Regulations (COMAR).
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.
-Compile the Required Documents
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Obtain a Criminal Background Check
Criminal background check – 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 check must be submitted.
-Obtain a Trader’s License – A copy of the trader’s license is obtained from the Circuit Court in the jurisdiction where your
business is located is required
-Obtain Proof of Liability Insurance
-Obtain Your Auto Dealer Bond
1. Used Car Dealer $15K 1-250 Cars
2. Wholesale Car Dealer $15K 1-250 Cars
ERT Contract – All new licensees are required to contract with an Electronic Registration and Titling (ERT) provider. A copy
of your ERT contract is required to be submitted along with your completed application.
Arrange an Appointment for Your Site Inspection – pre inspection
If you do not have repair facilities at the location where you will be licensed, you must
provide a contract with a repair facility within 5 miles of your dealership. The contract must include Maryland State Police
(MSP) inspection if applicable.
Submit Your Dealer License Application
Retail Used Car Dealer $225
Wholesale Used Car Dealer $225
Wait for your results back
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