Dealer License Training Class


Thinking of getting a used vehicle dealer license?  Here are some things you need to know and do:


  • Take the state required used motor vehicle pre-license education class.  Spend one day going over all the requirements needed to obtain your license, the State and Federal laws/rules that dealers must follow, basic tips and advice to be able to run your dealership and give you the opportunity to ask any questions you may have.  At the end of the class, you’ll receive a certificate (good for 6 months from the class date) that needs to be sent in to the BMV with the dealer license application. The Dealer License must be issued before the certificate expires or you will have to take the course again. 
Background Check:

  • Get your criminal history report done.  The BMV requires everyone on the license application to have electronic fingerprints and a background check done.  (BCI only) The results need to be sent to the BMV dealer licensing dept. and are good for 12 months. The association has the equipment here in the office if you would like to have it done after class.  Some background checks can take BCI up to 30 days to process.  Background checks (webchecks) are reason specific in Ohio.  If you have been fingerprinted for any other reason (CCW permit, liquor license, etc), it will not transfer to dealer licensing.  
Register the Business:

  • Do you know what type of business entity you’re going to be?  Sole proprietor, LLC, Corporation, etc.  You will need to register your company with the Ohio Secretary of State.  Click here to see if the business name you want to use is available:  Registering online is the fastest way to get it done and you’ll need to include a copy of the business certificate with your license application.  Remember, this name will be used in your day-to-day business for your paperwork, website, social media, and logos.  
Financial Information:

  • The State of Ohio requires all used car dealers to have a net worth of at least $75,000 and a surety bond of no less than $25,000.  Copies of your Surety bond must be sent to the Ohio Attorney General’s Office and with your license application.  Proof of net worth is required upon request but does not need to be turned in with the license application.
Location, location, location:

    • Do you have a location picked out or in mind?  Finding a location can take some time.  Dealing with commercial property means zoning and permits for some places and it usually requires a legal contract or lease agreement.  Make sure you check with your local zoning, city, townships, code enforcement or chamber of commerce type officials.  Verify that a used motor vehicle dealership is permitted at that location.  The BMV will not verify it for you, this is your responsibility.
  • Are you going to share a location with another licensed used motor vehicle dealer?  Sharing a location is a great way to start into the business.  The BMV allows two used motor vehicle dealers at one address or property.  Both dealers must sign the Certificate of Compliance Form (BMV 4347) and have it notarized.  Each dealer must have their own business sign, phone number, file cabinet, and posted business hours
Other Permits, Registrations and Licenses:

  • You will need to get a County Vendor License: registering online through the Ohio Business Gateway is the fastest way:
    You may also need to obtain a FEIN (Federal Employer Identification Number)

Building, Lot & Signs:

  • We will go over the specific requirements for the location in the pre-license class.  Everything from the size of the display lot, the minimum height of the letters on the business sign, to how many chairs you need in the office…you will know everything you’ll need to have in place before the BMV can approve your license application (BMV 4320).
License Application (BMV 4320):

  • Fill out the used motor vehicle dealer license application (BMV 4320).  One of the benefits of being a member of the OIADA is having us help you complete the application and monitor it while it goes through the process.  We do not get special treatment from the BMV; we deal with this every day and know what to look for.  Having your application pre-checked, hand delivered to the BMV, and monitored while it is being processed can expedite the process. We can also help you with your Surety Bond, Vendor’s License, FEIN, registering your name with the Secretary of State.

Stay Compliant:

  • Want to know where to get all the information you need before you open?  Want to know who to call when you have questions or issues once you are open? 

Become a member of the OIADA!