Dealer Licensing

Guide to Opening and Licensing Your New Dealership

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Congratulations on your new dealership purchase.

Whether you are applying for a license to operate a franchised new car dealership, a used car store, or changing your existing license, GNYADA will assist franchised new car members through the process. We are pleased to have you as a member, and we look forward to supporting your newly acquired dealership.

In order to begin the DMV licensing process, you will need to acquire specific documents from a variety of sources, including your manufacturer, New York State, and sometimes, local agencies. For example, dealers operating in New York City must obtain an additional license from the New York City Department of Consumer and Worker Protection in order to sell used cars.

This Guide will help you understand the licensing process for your new dealership and how the Association can help you navigate through the process. In this Guide, you will find links to required forms, contact information for GNYADA staff who can assist with required documentation, and a step-by-step checklist.

GNYADA works closely with DMV’s licensing staff to help dealers facilitate applications. Several years ago, this Association proposed, and DMV adopted, an expedited path for franchised new dealer buyers to operate as soon as the closing was completed. The expedited Provisional Dealer license is available only to franchise new car dealers. Used car dealers must use the Original Facility Application.

License Applications

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Obtain appropriate dealer license applications by contacting Kelsey Hering, GNYADA’s Dealer Services Manager at 718.746.5900 x273 or kelsey@gnyada.com.

Steps to be Completed

Step One: Obtain the Required Documents
  1. Obtain a Filing Receipt showing your corporate name and your “doing business as” (dba) name from the NYS Department of State. https://dos.ny.gov/ or 518. 473.2492. Your dealership attorney may also be able to assist.

  2. Obtain a Retail Sales Tax Certificate of Authority (DTF-17A) which is required in order to collect and remit sales tax to the State. https://www.tax.ny.gov/ or 518.485.2889. Your dealership accountant may be able to assist.

  3. Obtain a Surety Bond. All dealer license applicants must submit a signed original (raised seal) Surety Bond. Contact Jennifer Lepurage to expedite your Surety Bond Application. Jennifer can be reached at 718.746.5900 x235 or Jennifer@gnyada.com.

  4. Obtain a franchise agreement or letter of intent from the manufacturer indicating that you may sell the particular brand at the address on the application.

  5. Obtain a Workers’ Compensation & Disability Insurance Policy. Contact Michael Conway at 718.746.8100 or mconway@gnyada.com for your Workers’ Comp application.

  6. Obtain a copy of your lease(s) or ownership documents for the property where your business is located.

Step Two: Complete Required Applications
Franchised New Car Dealers

Complete the Provisional Dealer Registration and Inspection Station License Application (VS-1 PROV).

  1. List your business name and dba, email address, business address and phone number.

  2. List the contact person for correspondence relating to the application.

  3. If there previously was a new car dealership at this location, list the DMV facility number and the closing date (if known).

  4. Check the boxes with the proper fees according to the license type(s) you are applying for. Make checks payable to the Commissioner of Motor Vehicles.

  5. Complete the affirmation and have all individuals/owners who will also be listed on the Original Facility Application print and sign their name.

  6. Attach the completed Provisional Dealer Registration Application to your Original Facility Application.

Franchise New Car Dealers and Used Car Dealers

Complete the Original Facility Application (VS-1) - All Applicants.

  1. List your business name and dba (if applicable), email address, business address and phone number.

  2. List the contact person responsible for correspondence relating to the application.

  3. Select your business type and complete the personal information section about each individual officer/partner/member listed on the application.

  4. Include copies of government issued IDs for each officer/partner/member listed on the application.

  5. Include a copy of the filing receipt issued by the NYS Dept. of State.

  6. List your Tax ID and FEIN (Federal Employee Identification Number).

  7. Include a copy of your Certificate of Authority (Sales Tax Certificate).

  8. Include a copy of your Workers’ Compensation and Disability Insurance Certificate.

  9. If you currently or previously owned a dealership, list the facility number(s)/certified inspector numbers in the dedicated spaces.

  10. Include a copy of your lease, sublease, tax bill, deed, or a notarized statement from the property owner if your lease/sublease is pending.

  11. Include a copy of your letter of intent or franchise agreement (new car dealers only).

  12. Include the original signed copy of your Surety Bond (raised seal).

Step Three: Payment and Certification
  1. Include all required fees associated with each application. Make checks payable to the Commissioner of Motor Vehicles.

  2. Complete and sign the certification on the last page of the application.

Additional Licenses, If Needed

If you are also applying for a Repair Shop License:

  1. Obtain appropriate dealer license applications by contacting Kelsey Hering, GNYADA’s Dealer Services Coordinator at 718.746.5900 x273 or kelsey@gnyada.com.

Required Documents for Repair Shop License
  1. If your repair shop will service motor vehicle air conditioning systems, you must include proof that you have purchased refrigerant recycling equipment. DMV accepts a copy of the equipment’s Manufacturer’s Certificate or a copy of an invoice as proof of purchase.

  2. You must provide proof of zoning demonstrating that a repair shop may be operated at the address on the application. Provide the previous owner’s (seller’s) facility number, and the business name, if known.
    Tip: Applicants in New York City MUST enclose a Certificate of Occupancy, or a Letter of No Objection from the local authority stating that “you may operate a Motor Vehicle Repair Shop” at the address on the application. There are no exceptions to this requirement for NYC dealer applicants.

If you are applying for an Inspection Station License:
  1. Obtain appropriate dealer license applications by contacting Kelsey Hering, GNYADA’s Dealer Services Coordinator at 718.746.5900 x273 or kelsey@gnyada.com.

  2. Complete the inspection station information portion of the application.
    TipYou must have a repair shop at the same location in order to qualify for a public inspection station license.

  3. Attach your completed Public Emissions Inspection Station Buy/Sell Agreement (VS-95). The application must be signed by the seller and submitted by the purchaser.
    TipThis application is not required for franchised new dealer applicants.

Amending A Dealer License or Requesting a Duplicate License
  1. Obtain appropriate dealer license applications by contacting Kelsey Hering, GNYADA’s Dealer Services Coordinator at 718.746.5900 x273 or kelsey@gnyada.com.
  2. Obtain a rider to your surety bond if you are making a location change or changing your dealership name.

  3. Have your Workers’ Compensation policy/certificate updated to reflect your new business address and/or your new dealership name.

  4. Notify the New York State Department of Taxation and Finance that you have changed your name or changed the dealership location. Use Form DTF-96: https://www.tax.ny.gov/bus/ads/dtf96.htm

  5. Obtain a copy of your Lease Agreement (if leasing) or Deed/Tax Bill (if applicable).

  6. Obtain a Certificate of Occupancy or a Letter of No Objection (Applies ONLY if the location was not previously operating as a Repair Shop.)

  7. Obtain a letter from your manufacturer stating that you have permission to operate your dealership at the new address.
    Tip: Applies to retail new car dealerships only.

Complete the Request for Business Amendment/Duplicate Certificate Application
  1. Complete the Request for Business Amendment/Duplicate Certificate (MV-253G).

  2. Complete and sign the certification on the last page of the application.

  3. Complete and attach the Statement of Ownership and/or Permission to Use Place of Business (VS-19) (if applicable).

  4. Attach the rider to your surety bond (if making a location change or changing your name).

  5. Attach the updated Workers’ Compensation Certificate.

  6. Attach the Lease Agreement (if leasing the property) or Deed/Tax Bill (if applicable).

  7. Attach a copy of the Certificate of Occupancy or Letter of No Objection (if applicable).

  8. Attach the letter from the manufacturer allowing an address change (retail new car dealers only).

 
Additional Information to Help You Prepare for Operations Upon Closing
1. My application has been approved, what happens next?

Now that you have been approved under a provisional license, you can begin conducting business. DMV shipped a box of items containing your Provisional License Approval Letter (you can find your facility number here), and supplies, including 1 MV-50 book, 5 books of Safety Emission Inspection Certificates and 5 books of safety inspection certificates.

  • Appoint an administrator and register for VERIFI. Ensure that the seller’s administrator has had access removed.

  • Order official signs by contacting Timely Signs at (516) 285-5339 or gene@timelysigns.net

Prepare for on-site inspection visit from a local DMV Automotive Facilities Inspector (AFI).

The AFI will look for the following:

  • permanently mounted signs visible from the street (the AFI will deny your application if the signs are not clearly visible).

  • proof of identification for everyone named on the application (driver’s license or other government issued photo ID)

  • dealer starter kit (VERIFI registration, MV-50’s, Bills of Sale, Odometer Statements and Warranty Forms)

In addition to the items listed above, the inspector will examine your location for the following:

  • a clear and permanent physical barrier from other businesses that may share your location (separating display areas if you sell more than one brand, signs, and offices)

  • a display lot.

  • a mailbox dedicated specifically for your business

  • a method for locking security items and limiting access (safe, cabinet, etc.)

  • electricity, heat, desk and chair and a business phone (cellphones are acceptable)

  • sufficient space and tools required to perform inspections

  • name and ID number of the certified inspector(s)

If approved, the DMV’s Albany Office will issue you a permanent Certificate of Registration (dealer license) following the completion of your on-site investigation.
TipDMV sends the dealer license via first class mail; alert staff to watch for DMV mail.

2. How will my new dealership issue plates to customers?

Partnering vs. Plate Issuance

Partnering:

  • Allows dealers to issue plates and permanent registration in-house

  • No cost for plate supplies and inventory is automatically replenished

  • Partners have 10 days to submit processed DMV paperwork

  • Contact Jennifer Lepurage at 718.746.5900 x235 to sign-up.

Dealer Plate Issuance:

  • Dealers can issue plates/ITP’s and temporary registration (TCR) in-house

  • Dealers have 5 calendar days after the date the TCR/ITP is issued to submit paperwork

Find the application for Dealer Plate Issuance (MV-463) below and be sure to include a plate order and send the applicable fees with your application.
https://dmv.ny.gov/forms/mv463.pdf

3. Where can I get dealer plates?

Dealer plates can be issued at most local DMV offices. The following offices DO NOT issue dealer plates: Peekskill, Suffolk DO, Huntington, Queens DO, Brooklyn, Staten Island, Queens Service Bureau, Hempstead, Corning and Hornell. You should contact your local DMV office to make sure they have a sufficient supply of plates available and to understand that office’s process for picking up your allotment.

4. Ensure you are ready to conduct safety and emissions inspections.

Contact OPUS (the official vendor for the NYVIP program) at 866.OBD.TEST (8378) to either get or have your inspection station equipment transferred to your new dealership.

5. Register for the Drive Clean Rebate

If you are a car dealer in New York State that sells new electric cars, you can sign up online to offer the Drive Clean Rebate to your customers who purchase qualifying vehicles.

You will not be reimbursed for rebates unless you are registered. Again, make sure only your staff has access to your account.

Closing a Dealership

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Whenever someone buys a dealership, the seller must submit certain documents to DMV to inform the agency that they are no longer the owner of the dealership. Working with the buyer to ensure both sides have completed and submitted the proper paperwork, can ensure a smooth transition.

  1. Obtain appropriate dealer applications by contacting Kelsey Hering, GNYADA’s Dealer Services Manager at 718.746.5900 x273 or kelsey@gnyada.com.

  2. Complete a Facility Out of Business Attestation (VS-20) https://dmv.ny.gov/files/vs20.pdf

Complete this application and surrender your supplies to the appropriate unit listed on page 2 of this application.

Opening a new dealership is very exciting and the process can be stressful, that is why the Association’s staff is here to assist you every step of the way. We look forward to serving you as a member of the Greater New York Automobile Dealers Association.

 

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