If you want to open a car dealership, then the first thing you need to do is acquire a dealers license
. The applicant needs to fill in the application form and submit it at the Vehicle Services Department division of the Secretary of States office. The vehicle services then initiate an inspection to establish if the business has complied with all industrial regulations before deciding on whether to allow the dealership license or not.
However, to become one of the car dealers in Illinois you need to follow the steps mentioned below in order to acquire that much needed car dealership.
-You need to secure a bond of $20,000 or a certificate of deposit. You also need to have a certificate of insurance for bodily harm for at least $30,000 to $50,000 for property damage.
-Copy of manufacturers franchise agreement
-A notice that your dealership is properly zoned
-A copy of the lease in case its leased
-Procure a certificate that proves that your corporation is in good standing with the secretary of states department of business services
-In case you have a repair shop, you need to provide the hazardous waste generator number which is issued by the States Environment Protection Agency
-Requisite application form
-You should pay for and receive a mandatory criminal background check
-You have to pay for dealer plates which prove that a vehicle belongs to your dealership. The annual fee is $45. The dealer plates can be used on any vehicle that the owned by the dealer or his associates during a test drive or every time the vehicle is driven. A dealer can acquire one master set of license plates, seven duplicate sets and eight additional sets of duplicate license plates.
-The Illinois vehicle tax information guide includes dealer requirements as well as leasing and trade in transaction taxes
-You have to pay annual dealership fee of $1000 a year. Supplemental certificate of authority annual fee of $100 for new cars and $50 for used cars.
Getting a car dealership is no easy task. You need to satisfy all rules and condition to be eligible. Before applying you can check for Illinois regulations for vehicle dealers documents for any other codes for the dealers. In case you are left with any doubts you can reach the vehicle services department for necessary information. You will only be allowed car dealership if your application and supportive documents has been successfully verified and thorough criminal background check has been conducted.