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Alabama Motor Vehicle Dealers

Alabama Auto Dealers are required to obtain a Regulatory Permit from the states Sales, Use and Business Tax Division. This permit will need to be presented to the county license issuing official for the issuance of a Privilege License as well as license plate. It will also have to be presented at the Taxpayer Service Center for tag issuance.

The Categories of Regulatory Licenses are: New Car Dealer, Used Car Dealer, Wholesalers, Rebuilders, Reconditioners, and Dismantlers. Motorcycle and trailer dealers are exempt.

Dealers must fulfill the following requirements for licensing:

A: provide evidence that vehicles held for resale are covered by a blanket liability insurance policy
B: have a sign on display that designates the place of business
C: both describe and insure permanency if the place of business
D: provide a display area for at least one motor vehicle and a place for maintaining the books and records.

Licenses are renewed annually by person or by mail.

Dealer License Fees:

$10 per category, plus $45-$210 for the Privilege License depending on the city or county of business.
$225 for Auto Dismantlers

MVD Surety Bond

A $10,000 Surety Bond is required for used car dealers, rebuilders/reconditioners, and wholesalers. A $25,000 Surety Bond is required for all new car dealers. A $10,000 Bond is required for auto dismantlers and parts recyclers in the state of Alabama.

MVD Bond Expiration Date: September 30th
Continuous: This bond is not continuous, it requires a Continuation certificat apon renewal

AL Dealer Bond Obligee

Obligee Department of Revenue - Sales, Use & Tax Division
Obligee Address: PO Box 327550, Montgomery, AL 36132-7550

Bad Credit Program for Auto Dealers

Alabma MVD's with a low credit scores, or public records on their personal credit report (Bankruptcy, Liens, Collection, or Civil Judgments) may find a difficult time getting bonded. Bryant Surety Bonds, Inc offers a Bad Credit Surety Bond Program that is specially tailored to your needs and can get you approved. This program is available for all high Auto Dealers.

*Information for state licensing is provided as a guide, always verify with the state that the information is correct.