Regulations

Motor Vehicle Dealer / Franchise Dealer License

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Motor Vehicle Commission

About

Motor Vehicle Dealer is any person engaged in the business of selling, offering to sell, soliciting or advertising the sale of motor vehicles or recreational vehicles, or possessing motor vehicles or recreational vehicles for the purpose of resale, either on that person's own account or on behalf of another, either as a primary business or incidental to the person's business.

Anyone who sells more than five (5) motor vehicles in one (1) year in the state of Tennessee is required to be licensed by the Motor Vehicle Commission as a Motor Vehicle Dealer. This includes RVs, motorcycles or any other automobile (new or used).

A Motor Vehicle Dealership is required to receive a compliance inspection upon application prior to opening for business.

Requirements

  1. Submission of Fees and Application
  2. Established place of business
  3. Picture of Signage
  4. Certificate of Liability Insurance
  5. Copy of Business tax License (City and County if applicable)
  6. Copy of State Sales tax Certification of Registration
  7. Financial background disclosure
  8. Financial statements
  9. Copies of Corporate Documentation and List of Officers*
  10. Zoning compliance letter
  11. Surety Bond (ORIGINAL)
  12. Conviction record (if any)
  13. Copy of Franchise Letters or Service Agreement (if any)
  14. Copy of Labor Rate Form

For more detailed licensing requirements and information see the application.

*If LLC or Corporation, documentation must be accompanied by a salesperson license.

Fees

License Application:  $400 (per line make)

Biennial Renewal:  $400 (per line make)

Late Renewal Fee:  $400 (per line make) plus half of renewal fee

Duplicate License Fee:  $25

Salesperson License: $35

Additional

Franchise Dealers
A Franchise Dealer is to complete the same application and meet all applicable requirements.  In addition, a letter of acknowledgement from the manufacturer(s) of the awarding of the Franchise agreement(s) must be provided upon application. The applicant's dealership name must be the same as the entity/name to whom the Franchise was granted.

A Franchise Agreement is an oral or written agreement for a definite or indefinite period, in which a manufacturer or distributor grants to a motor vehicle dealer a license to use a trade name, service mark or related characteristic and in which there is a community of interest in the marketing of motor vehicles or services related thereto at wholesale, retail, leasing or otherwise.

Salesperson
For salesperson application, click here.

Renewals
All licensees can renew online, but are required to submit the bond and insurance prior to approval.

Helpful Hints
Other Helpful Hints can be found here.

Grace Period

The grace period for your license is 90 days . When you renew during the grace period you are charged a late fee of 50% of renewal fee.

After grace period must complete a new application online in CORE.

Address Change

Pursuant to 55-17-111(e), A dealer must submit a change of address, ownership, employment, trade name, or line-make of motor vehicle a dealer is franchised to handle to the commission in writing, within thirty (30) days from the date of the change. A dealer must notify the commission of the termination of a salesperson’s employment, in writing, within thirty (30) days of the termination.

A motor vehicle dealer may only change the mailing address of their license. Any change in location requires the submission of a new application.

Please visit CORE in order to change your mailing address only.