How to Get a Car Dealer License in Ohio | Ohio Car Dealer License

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Are you opening a dealership in Ohio? Whether you’re planning on selling used or new vehicles, you’ll need a dealer license to begin operating your business. Following the correct steps as closely as possible will help you get your application right on the first attempt without wasting precious time as you get your business up and running. In this article, we’ve compiled everything you need to know about getting your dealer license to avoid a hassle. So, let’s get started.

Getting Your Ohio Dealer License

1. Which type of license will you need?

The Ohio Bureau of Motor Vehicles (BMV) is in charge of dealer licensing, and depending on the type of business you’ll be operating, there are two different license types¹:

New motor vehicle dealer
Used motor vehicle dealer

These categories vary state-by-state, so if you are familiar with the industry from having a business in another state, make sure you pay attention to the details as you fill out this new application.

2. Take the dealer educational course

If you haven’t held a dealer license in the past two years, you’ll need to complete a six-hour course, which can be done online or in person. We recommend taking it with the Ohio Independent Automobile Dealers Association. You’ll get a Certificate of Completion, which will be submitted with all of your final documents.²

3. Register your business

Once you know the license type you’re applying for, the first step is to register your business name using the Ohio Business Gateway. This platform will guide you through the process, including registering with the Ohio Department of Taxation.

Beyond this, you’ll also need to register with the IRS for a Federal Employer Identification Number, as well as with the auditor’s office, so that you can get a vendor number.

4. Get a business location

You need to have a permanent business location in order to operate a dealership in Ohio, and the owner of the dealership must either rent or own the property. This location also needs to meet several criteria for which you may be required to show proof. When selecting a location, ensure it meets the following points:

It must be separate from any other business or residence.
The location must be easily accessible and identifiable as a dealership, with a sign that shows your business name in clear letters at least 6 inches in height.
The office must be at least 180 sq. ft. with a desk, three chairs, filing cabinets, and a telephone plus lighting, electricity, heating, and ventilation. It cannot be used for storage.
The business telephone must be in service at all times and answered in the dealership’s name, with a phone number posted legibly with easy public viewing.
Business hours must be posted legibly near the entrance.
The lot for display must be 3,500 sq. ft. or larger excluding the driveways or office.
There must be a display lot separate from any other business or service facility.
If you’re registering for a new motor vehicle license, you need space indoors to display at least one car.
The location must meet all other local zoning regulations.

Additionally, you’ll need to submit photographs depicting the lot, office, and sign indoors and outdoors along with your application. These images can be submitted via email to dealerphotos@dps.ohio.gov

5. Schedule an inspection of the business location

You’ll have to get your location inspected to ensure it meets all requirements. Send photos in advance, and be prepared to have random inspections moving forward once you’ve obtained a license.

6. Fingerprinting

Everyone who owns more than a 10% share of the business will have to get electronically fingerprinted and submit those prints to the BMV.

7. Get your documents together

You'll need to submit a long list of required documents. Reference this as a checklist when gathering your materials, but always double-check with the BMV in case of any changes or updates:

A copy of your lease or rental agreement.
A copy of the certification showing your business has been registered with the Secretary of State.
A copy of a $25,000 surety bond.
Paperwork showing your business information and formation, including your FEIN and Federal Tax ID number.
Information about the business owners, partners, and principal officers.
Zoning compliance documents pertaining to your location.
Proof of complying with business location requirements like display lot, signage, phone lines, and hours.
Photos of your location.
Certificate from the training course.
Proof that you meet the $75,000 minimum net worth requirement.
Statement of manufacturer/distributor for each line of make if you’re a new car dealer.

8. It’s time to submit the application and pay the fees

Fill out the DMV application form and pay the fees, which are valid for two years:

Permit: $50.00
Master plate: $50.25 plus $10.25 per additional plate
Title Defect Recision Fund: $150
Postage for plates: $4.50

You can send your materials to:

Ohio BMV
Attention: Dealer Licensing Section
P.O. Box 16521
Columbus, Ohio 43216-6521

This is not intended as legal advice. If you have questions about dealer licensing requirements, please seek the assistance of legal counsel.

Become an ACV Auctions member

Once you’re a licensed dealer in the state of Ohio sign up with ACV Auctions. ACV can partner with you to help you get inventory from all over Ohio or nationwide. Because we’re an online auction, we have inventory from all over the country, giving you a wide range of vehicle options. With no membership fees and transparent vehicle condition reports, we give dealers everything they need to bid confidently and acquire inventory.