To get licensed as a dealer in Mississippi you need to apply at one of the two licensing bodies. The Mississippi Motor Vehicle Commission (MMVC) issues licenses for new auto dealers, whereas the Mississippi Department of Revenue (DoR) issues licenses for used and wholesale dealers.
The application process for these licenses differs somewhat, but there are also some similarities. For example, most applicants will need to secure a facility for their dealership, submit an auto dealer bond, and complete an application form.
Keep reading for a full description of the licensing process for auto dealers in Mississippi!
Mississippi auto dealer pre-licensing requirements
Before you can apply for your dealer license at the MMVC or DoR, you will need to complete the following pre-licensing requirements:
- Register with the Internal Revenue Service (IRS) to obtain an Employer Identification Number (EIN)
- Apply for a business registration with the Mississippi Secretary of State (SoS)
- Register with the Mississippi Department of Revenue to get a sales tax number
License application process
Depending on the license you want to apply for, you will have to comply with slightly different requirements. These are described in the sections below.
With the exception of wholesale dealers, new and used dealers are required to have a facility for their dealership that they own or lease. To open a dealership, you will need to secure a location which is approved by your local zoning office.
Once you have complied with zoning ordinances, you will also need to make sure your facility complies with the following requirements:
- You must use your facility primarily for the purpose of selling vehicles, and to store business records.
- In seeing your facility, the general public must be able to distinguish it as a dealership.
- Your facility must have an office and be separated from any other businesses.
- If you do not have an office you must have a sign which clearly indicates the purpose of your business. The sign must be clearly visible to the public and located in front of your lot.
- You must have a lot for the displaying of the vehicles you are offering for sale.
Dealer education seminar
Used and wholesale dealer license applicants are required to pass a dealer education seminar to be eligible for a license. The seminar must be provided by the Mississippi Independent Auto Dealers Association (MIADA).
New dealer license applicants must enter into a franchise agreement with every manufacturer whose vehicles they intend to sell. You will need to attach copies of these agreements to your application later on.
Insurance and surety bond
Applicants for a used and wholesale dealer license must obtain a motor vehicle liability insurance.
In addition, all license applicants must also obtain an auto dealer surety bond, though in varying amounts.
- New dealer license applicants must post a $25,000 bond or a $100,000 one covering multiple locations.
- Used and wholesale dealer license applicants must post a $15,000 bond.
License application and fees
Finally, you will need to submit your application form to the licensing authority and pay a licensing fee.
New dealer license applicants must complete their application either on paper and send it to the MMVC or online. Along with your application form, you need to pay a $100 license fee and a $10 fee per salesperson application. You will need to attach various documents to the application which are clearly described in the form.
Used and wholesale dealer license applicants must complete their dealer application form on paper and send it to the DoR. Along with your application, you will need to submit several items which are described in the form. You will also need to pay a $100 permit fee and a $43.75 fee per requested dealer tag.
Dealer licenses are renewed annually. New dealer licenses are issued for the duration of one year. Used and wholesale dealer licenses expire yearly on October 31 and must be renewed before that.
Mississippi auto dealer bond requirement
Regardless of the license type, Mississippi auto dealers require a surety bond. The bond is specified in the MMVC Law for new dealers and the Mississippi Administrative Code for used and wholesale dealers. It guarantees dealers’ compliance with these laws and the faithful and honest performance of their obligations.
Applicants for a surety bond need to pay a premium to the surety company in order to get bonded. This bond premium is a fraction of the total amount of the bond. It is determined by sureties on the basis of an applicant’s personal credit score.
Get a free and precise quote on your bond by completing our simple bond application form. There are no obligations attached to requesting a quote!