How to Get Car Dealership Licenses in Tennessee
- 1). Get a letter of acknowledgement from your vehicle manufacturer that you have been awarded a dealer franchise, if you are selling new vehicles.
- 2). Contact your county or city’s zoning authority to ensure that the planned location of your dealership meets zoning compliance regulations, and get written approval for your dealership location.
- 3). Establish a place of business with at least 288 square feet of office space and room for 15 vehicles and a sign bearing the dealership’s name in letters no smaller than eight inches per letter.
- 4). Obtain a two-year surety bond of $50,000 in the name of your dealership. it requires that you fill out a fond form and your appeal for a bond is accepted by a bond agent.
- 5). Purchase garage liability insurance covering a minimum of $300,000 per occurrence.
- 6). Get a business tax license from your city or county clerk’s office, and a sales tax identification number from the Tennessee Department of Revenue.
- 7). Establish a service agreement with a garage facility in the area of your dealership, if you do not have a facility on-site. Find garage service agreement forms on the Tennessee Department of Commerce and Insurance website.
- 8). Have a Certified Public Accountant or Public Accountant complete a financial statement that gives an overview of your assets and liabilities. Find financial statement forms and instructions on the Tennessee Department of Commerce and Insurance website.
- 9). Submit a dealer license application to the Tennessee Motor Vehicle Commission. Download and print application forms and instructions from the Tennessee Department of Commerce and Insurance website. Include your financial statement, proof of insurance and surety bond, proof of zoning compliance, your state and county tax numbers, your franchise letter--if applicable, your garage service agreement, photos of your proposed dealership and your $400 fee with your application. Submit your application to the Tennessee Motor Vehicle Commission at 500 James Robertson Parkway 2nd Floor, Nashville, TN 37243-1153.