Free Guide to Georgia Dealer License Requirements

Understanding Georgia Dealer Licenses: Types and Requirements

Georgia requires different types of licenses depending on what vehicles you plan to sell. The Georgia Department of Revenue oversees dealer licensing, and each license type has specific rules. A retail dealer license allows you to sell vehicles directly to consumers. A wholesale dealer license lets you buy and sell vehicles primarily to other dealers. A manufacturer license applies if you build or assemble vehicles. An auction license is needed if you operate a vehicle auction facility. A dismantler or recycler license covers businesses that take apart vehicles for parts or scrap.

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Each license type serves a different role in Georgia's vehicle sales market. Retail dealers are the most common type—these are the car lots you see in your community. Wholesale dealers typically work behind the scenes, selling to retail dealers and other businesses. If you plan to sell only a few personal vehicles per year, you may not need a dealer license at all. However, Georgia law defines "dealer" broadly, and selling more than a certain number of vehicles can trigger licensing requirements. Understanding which license category fits your business model is the first step toward understanding what you'll need to do.

The state created these distinctions because different business models present different consumer protection issues. Retail dealers interact directly with the public, so they face stricter rules. Wholesale dealers work in a business-to-business environment where different protections apply. This structure means that the requirements you'll encounter depend heavily on which type of license you're pursuing. Before you move forward with any planning, identify which license type matches your intended business.

Practical takeaway: Review Georgia's dealer license categories and determine which one describes your business model. This decision shapes every requirement that follows.

Bonding and Financial Requirements

Georgia requires most dealer license applicants to post a surety bond. A surety bond is a financial guarantee backed by a bonding company. If you violate Georgia dealer laws or harm consumers, the state may use the bond to pay victims or cover penalties. The bond amount varies by license type. Retail dealers typically need a bond between $25,000 and $50,000, though some situations require higher amounts. Wholesale dealers may need lower bonds, sometimes $10,000 or less. The exact amount depends on factors like your location and business history.

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To obtain a surety bond, you contact a bonding company and pay a premium—usually between 1% and 3% of the bond amount annually. This is an ongoing cost. A $25,000 bond at 2% costs $500 per year. The bonding company investigates your background, credit, and business history before issuing the bond. If you have serious financial problems or criminal history, you may have trouble finding a bonding company willing to work with you.

Beyond bonding, Georgia reviews your financial capacity to operate a dealership. The state wants assurance you can handle customer deposits, trade-in vehicles, and other financial responsibilities. You'll need to provide information about your business finances. This might include bank statements, tax returns, or financial projections. If you're starting a new business, you may need to show personal financial resources or investment commitments. The state doesn't require a specific amount of money, but it must be reasonable for the type of dealership you're planning.

Some applicants use a business partner or investor to meet financial requirements. This is permitted as long as all ownership interests are disclosed and the responsible parties are identified. If you use credit financing for your surety bond or business startup, document those arrangements clearly.

Practical takeaway: Budget for a surety bond premium as an annual business expense, get quotes from multiple bonding companies, and gather financial documentation showing you can manage dealership operations responsibly.

Location and Facility Standards

Georgia requires dealer facilities to meet specific physical standards. You cannot operate a dealership from a residential property. The location must be a commercial space zoned appropriately for vehicle sales. The facility must have adequate space for displaying vehicles, conducting transactions, and maintaining customer records. For retail dealers, this typically means a lot with space for multiple vehicles, plus an office or building for paperwork and customer meetings.

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Your facility must have a street address and be accessible during normal business hours. You cannot operate from a parking lot that's only accessible occasionally or use temporary structures as your primary location. The state needs a fixed, permanent location where customers and regulators can find you. This address becomes part of your public registration, so customers know where to locate your dealership.

Zoning compliance is critical. Check with your city or county zoning office before securing a location. Some areas restrict vehicle sales to specific commercial zones. A property zoned for office use may not allow vehicle sales. Zoning violations can block your license approval, even if you've met every other requirement. Contact your local planning or zoning department, provide your business plans, and confirm the location works for a dealership.

The facility must comply with environmental regulations if you handle fuel, oil, batteries, or other hazardous materials. If you wash or service vehicles, you need proper drainage and stormwater management. These aren't dealership-specific rules—they're general business regulations—but they apply to your location. Some dealerships use service bays and wash areas, which trigger additional environmental permits.

Facility security is important too. Your location should allow you to secure inventory overnight and protect customer vehicles left for trade-in. Basic security measures like fencing, lighting, or gates may be expected, depending on your location and local standards.

Practical takeaway: Before signing a lease, confirm the location is properly zoned for vehicle sales, verify the address is permanent and street-accessible, and investigate any environmental or zoning issues that could delay licensing.

Background Checks and Personal Disclosure

Georgia performs background investigations on all dealer license applicants and owner representatives. The Department of Revenue reviews criminal history, financial conduct, and disciplinary records. Certain convictions or conduct can result in license denial. This includes felony convictions involving dishonesty, fraud, theft, or violence. Convictions related to vehicle sales fraud or consumer protection violations carry particular weight. A misdemeanor conviction 10 or 15 years ago may not block your license, but a recent felony conviction likely will.

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The state also investigates whether you've been disciplined by other licensing authorities. If you lost a license in another state or were barred from operating a dealership elsewhere, Georgia will learn about it. If you've had civil judgments against you or unresolved complaints with consumer protection agencies, these factors matter too. The goal is to identify patterns of dishonest or irresponsible conduct.

You must disclose all ownership interests in the business. This includes partners, investors, and anyone with voting rights or financial stakes. The state investigates all owners, not just the principal applicant. If an owner has a criminal history or disciplinary record, it affects the entire application. Some applications are denied because a silent partner had a hidden background problem that wasn't disclosed.

You'll provide personal information including your full name, date of birth, Social Security number, address history, and employment history. Be thorough and honest. Omissions or misrepresentations discovered later can result in license denial or revocation. If you've had an address change in the past few years, document all previous addresses. If you've had a name change due to marriage or legal action, provide that information and documentation.

Financial responsibility matters too. If you have unpaid taxes, wage garnishments, or unresolved civil judgments, disclose them. These factors don't automatically deny your license, but hiding them does. The state is looking for honesty and evidence that you take financial obligations seriously.

Practical takeaway: Gather comprehensive personal and business background documentation, disclose all ownership interests and personal history truthfully, and resolve any outstanding legal or financial issues before applying.

Insurance and Consumer Protection Obligations

Georgia requires dealers to carry liability insurance covering their business operations. This protects customers and the business against injury or damage claims. The minimum coverage amounts vary by license type and situation, but retail dealers typically need substantial coverage—sometimes $100,000 or more per occurrence. You'll provide proof of insurance when applying and must maintain coverage throughout your licensing period.

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Beyond insurance, dealers must follow specific consumer protection rules. Georgia's Automobile Dealer Laws establish standards for sales contracts, financing disclosures, and vehicle condition representations. You cannot misrepresent a vehicle's condition, odometer reading, or ownership history. Odometer fraud—rolling back the mileage shown on a vehicle's odometer—is both a state violation and a federal crime. All