About Tennessee Motor Vehicle Dealer License
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.
- Submission of Fees and Application
- Established place of business
- Picture of Signage
- Certificate of Liability Insurance
- Copy of Business tax License (City and County if applicable)
- Copy of State Sales tax Certification of Registration
- Financial background disclosure
- Financial statements
- Copies of Corporate Documentation and List of Officers*
- Zoning compliance letter
- Surety Bond (ORIGINAL)
- Conviction record (if any)
- Copy of Franchise Letters or Service Agreement (if any)
- 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.
License Application: $400 (per line make)
Biennial Renewal: $400 (per line make)
Late Renewal Fee: $400 (per line make) plus half of the renewal fee
Duplicate License Fee: $25
Salesperson License: $35
Dealer Bond Requirement is $50,000/ 2 years Apply Now for a Free Dealer Bond Quote
A Franchise Dealer is to complete the same application and meet all applicable requirements. In addition, a letter of acknowledgment 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 License Contact info
For salesperson application, click here.
Here’s the key information you need to know about your Tennessee auto dealer bond:
- Surety Bond Name: Tennessee Motor Vehicle Dealer Bond
Bond Amount: $50,000
Obligee: Tennessee Motor Vehicle Commission
500 James Robertson Pkwy
Nashville, TN 37243-1153
Expiration Date: Two years from the issue date
If you’re ready to apply, you can use our convenient and secure online application, which will seamlessly take you through the whole process. If you need to learn more about auto dealer bonds, take a look at the Questions section below.
All licensees can renew online but are required to submit the bond and insurance prior to approval.