Starting a car dealership can be a tedious task. Not only do you have to obtain a surety bond, but you also have to meet numerous state requirements.
Background check
One of the first steps is to pass a background check. The state will charge a non-refundable fee before they perform the check. An applicant convicted of fraud, auto-related felony or any other type of felon maybe denied for the license.
Testing
Some states such as California as well as Arizona require the owner of the dealership to pass a test or attend a class.
Buy /Sell Agreement
For most states such as Arizona a copy of the Buy/Sell Agreement must be furnished to the state for approval. The state wants to make sure that you are following the appropriate state laws.
Location
For most states they require a established place of business. The state may want certain lot size to display a certain number of cars or trucks. You should always contact your city and county to make sure that you comply with the zoning laws.
Signs
The state and city may want a permanent sign and a specific size to be displayed. Arizona for example does not considered a sign to be permanent if it is painted on glass.
Some states also require dealer insurance.
Garage Liability
Provides coverage for bodily injury and property damage resulting from operations involving the ownership, maintenance or use of a covered automobile/vehicle.
Garage-keepers Coverage
Provides coverage for legal liability for damages to customers' vehicles that are left in the insured's care, custody or control.