Kentucky Dealers Licenses are granted by the Kentucky Transportation Cabinet Division of Motor Vehicle Licensing in Frankfort, Kentucky.
Kentucky Dealer License Application
If you want to obtain an Kentucky
Dealers license all you need to do is obtain a insurance
from an insurance agency, register with the Secretary of
state & obtain Kentucky Sales Ta Certificate, have a
building and lot, erect a sign and submit photo graphs, then
submit a Kentucky Dealer License application to the Kentucky
Motor Vehicle Commission , I am going to show you how to
easily obtain your Kentucky dealers license
First I want to show you some valuable contact information
for Kentucky Dealers, Kentucky dealers are regulated by the
Kentucky Motor Vehicle Commission
Kentucky Motor Vehicle Commission
200 Mero Street 3rd Floor
Frankfort, KY 40601
502-573-1000
www.mvc.ky.gov
I want you go in depth in the 6 Steps to an Kentucky Dealers
License
Step Number 1 Dealer Surety Bond and Insurance
You may be required to obtain a dealer surety bond Kentucky
dealers license. I always recommend this as the first step
in obtaining a Kentucky dealers license. The cost of a
dealer surety bond is based on your credit score and the
cost of your insurance is based upon your driving record. I
am often asked what it costs to obtain a Kentucky dealers
license and I can never answer that question accurately
because the total cost will depend on your credit score and
your driving record.
The State of Kentucky may require you to to obtain at least
$25,000 dealer surety bond in order to be granted a Kentucky
dealers license, is the bond going to cost you $25,000, of
course not, with good credit you should be spending about
200 to 300 dollars a year for your bond, your insurance
company will normally send you an invoice every year or
every other year. If you have a couple of blemishes on your
credit score, the price of your bond can increase
dramatically. The bond must be a surety bond eecuted by an
insurance or bonding company authorized to do business in
Kentucky,
When you complete your dealer application you will enter
some financial information, the State of Kentucky will then
determine whether or not you will need a bond.
You must also obtain a special insurance policy before the
State of Kentucky will allow you to have a dealers license.
Your insurance policy pricing will be dependent on your
driving record so if you have a really bad driving record,
you might pay a lot more for your insurance. You must also
obtain an insurance policy that will cover the vehicles that
are in your inventory. The State of Kentucky requires every
vehicle driven on any roadway in the state to have
insurance, including the vehicles in your inventory when
they are being test driven by your customers.
I am sure your insurance agent will be able to eplain
different types of coverage but I want to eplain some of the
coverage for dealers.
Dealer Garage Liabiilty, dealer liability is just like
liability on your own vehicle, if your customer wrecks on of
your vehicles, the insurance will only cover the other
person’s property, the insurance will not cover any damage
to your demo, because it is dealer liability, I am going to
recommend either when you are starting out, or shortly after
you have started to obtain a larger inventory to bump up
your dealer insurance coverage, you might think of it as
full coverage but in our industry we refer to it as Open
Lot, Open Lot dealers insurance does not cover a specific
number of vehicles, it covers a dollar amount, so lets say
you have $50,000 worth of inventory, YOU NEED $50,000 worth
of Open Lot coverage. Kentucky has tornados, Kentucky has
floods, Kentucky has halestorms. Did you see the pictures
recently of the dealership that was hit by a tornado in
Missouri over 700 vehicles were destroyed on one dealer lot
in the course
I always recommend getting a dealer surety bond and
insurance quote as your first step so you will have an idea
of what the total cost outlays will be to obtain your
Kentucky dealers license.
The start up costs to be granted a Kentucky Dealers license
may seem epensive if you have never been in the industry,
but you will soon realize the incredible mark up on
vehicles, You will be amazed at the price you pay for a
vehicle at a Kentucky dealer auction and what you will sell
if for a week later on your Kentucky dealer lot, and you
will probably with you have obtained your Kentucky dealers
license 20 years ago, so GO FOR IT, I think you are going to
be very glad you are getting into this industry.
One hundred thousand dollars ($100,000) for bodily injury to
one (1) person.
Three hundred thousand dollars ($300,000) per accident
Fifty thousand dollars ($50,000) for property damage.
Here you see an eample of the insurance Accord form your
insurance agent will provide you, you must submit a copy of
your accord form with your Kentucky dealer license
application, Which I will show you in just a it
Step 2-Register Business & Ta Certificate
If you are a corporation or partnership you must register
with the Kentucky Secretary of States office and if you are
a sole proprietor you must file your name with your county
clerk. You can call the Kentucky Secretary of state at
502-564-3490. You can file your name with the secretary of
state right over the phone. The trade name under which the
dealership will be operated must incorporate the words “used
cars,” “auto sales,” “auto mart,” “motor sales,” or other
similar wording which clearly identifies the business as a
motor vehicle sales business. This trade name must be the
eact wording as that listed on the dealership sign and on
your insurance filing. You must also obtain a Revenue
Cabinet Sales Ta Permit and you can do that over the phone
as well at. 502-564-3306. You must complete these easy steps
BEFORE you submit your application
Step 3-Building & Lot
You must have a building for your Kentucky dealers license.
Your business building must be a permanent enclosed building
owned or leased by you, The established place of business
must be devoted mainly to the operation of your dealership
Whether you are a retail dealer , broker, or a wholesale
dealer you must meet local zoning requirements. You can
contact the city hall or county court house’s planning a
zoning division to ensure the location you want to use as
your dealership meets all local zoning requirements for an
Kentucky Dealers license. Applicants should contact their
local city or county office to ensure compliance with local
zoning ordinances.
The dealer shall conduct business in a building on the same
property as the display lot. If the dealer is a used car
broker, and will not display an inventory of vehicles for
sale, the requirements of this rule for an established place
of business shall still be met, with the eception of the
display area for vehicles. That would be for brokers. All
sales activity must take place at the lot, you cannot sell
vehicles away from the lot unless you are selling vehicles
at a dealer auction
New and Used Dealers are subject to the following additional
requirements regarding their established place of business:
Lot at least 2,000 square feet
Have parking areas adequately surfaced with asphalt,
concrete, rock, or substance that will not change with
weather conditions
Have a dealer office that is:
housed at the dealer's established place of business
at least one hundred (100) square feet in size
equipped with office furniture such as a desk, chairs, and
filing cabinets
reflective of functional use and operation of the license
served with utilities such as:
electricity;
lighting;
heat;
working telphone;
You must also have also have installed and maintain a
working land line telephone whose number shall be listed in
the licensee's trade name, the same as that which is listed
in the application and in any advertising.
Step 4-Business Sign and Photographs
You must also erect and maintain a permanent sign. The sign
shall list the trade name of the dealer, the same as that
which is listed in the application and in any advertisement
by the dealer. The dealership name letters must be at least
9 inches or larger.
The sign must be professionally designed on permanent
material,. At least one sign must be located and positioned
to be clearly visible to consumers from the street.
Step 4 Submit Application
Once again, here is that great contact information for you
Kentucky Motor Vehicle Commission
200 Mero Street 3rd Floor
Frankfort, KY 40601
502-573-1000
www.mvc.ky.gov
When you submit your application correctly you should
receive your Kentucky Dealers license in about 30 days.
Once you obtain your Kentucky dealers license you must
display the license prominently, you are going to work hard
to obtain your Kentucky dealers license, you are going to be
proud when you obtain your Kentucky dealers license,
Kentucky law requires that you display your dealers license
prominently when it is granted, don’t shuve it in some desk
drawer, or lock in in a vault, frame your official Kentucky
dealers license and display it on the wall, all Kentucky
dealers licenses must be displayed prominently
To find out how to get an Kentucky Dealer License, you can call the Kentucky Transportation Cabinet Division of Motor Vehicle Licensing at 502-573-1000 or you can write:
Kentucky Motor Vehicle Commission
105 Sea Hero Road, Suite 1
Frankfort, Kentucky 40601
Download step by step Kentucky Dealer License instructions
Download Kentucky Dealer Handbook
Download Kentucky Dealer Application Packet