The Must Know Steps To Get Your Ohio Used Vehicle Dealer License

In this article, we're only going to be looking at getting a used vehicle dealer license. This is the only license that requires a surety bond.

If you need to get the details for other license types, use the Permits and Licenses page on the Ohio Dealer Licensing site.

The Dealer Licensing Division does a great job at outlining all of these steps, but I'll help explain some of these requirements so you understand its purpose.

The Must Know Steps To Get Your Ohio Used Dealer License

Required Documents for Licensing Overview

Here's a list of what you need to have. If there are details you need to know about, those details will have their own section below.

• Completed application
• Copy of the certificate proving your business is registered as a business with the Secretary of State
• If you have any trade names or "doing business as" names... you need registration certificates for each of these
• Every owner listed in the application must have a criminal background check completed through the Bureau of Criminal Identification and Investigation
• Used dealers must complete the User Motor Vehicle Course from an approved provider
• Copy of the required surety bond (original bond must be filed with the Attorney General's office)
• The required photographs for the location
• The purchase of at least one dealer plate

Let's break down some of these requirements so you understand the details and what they actually are.

User Motor Vehicle Training Course

One of the following business positions must take and pass this course:

• An owner or principal owner
• Partner or president
• Business member or trustee

The provided certificate must be passed within the last 6 months from when the dealer license application is submitted.

This requirement is NOT required if:

• Any one of the above business positions has held a used dealer license within the last 2 years
• The previous license was never suspended or revoked
• The business or an owners related business has a salvage motor vehicle auto license or a motor vehicle auction owner license

The course itself will cover the following topics:

• Responsibilities of the motor vehicle dealers board
• Act that can cause your license to get suspended or revoked
• Insurance and temporary tag rules
• How to perform out-of-state vehicle inspections
• The registration requirements for dealers
• All Federal laws that affect selling vehicles
• How to title vehicles
• What and why the title defect rescission fund exists
• Sales taxes for sold vehicles and other dealership merchandise
• Retail agreements
• How to repossess a vehicle
• Consumer protection laws and requirements

Insurance And The Surety Bond Requirement

Garage Liability Insurance

There are no stated garage liability requirements to have your license issued, but getting a garage liability policy would be a good decision.

A garage liability policy is a liability insurance policy specifically designed for dealerships and servicing locations.

It's insurance that will protect you from accidents involving:

• Customers getting injured on your dealership property
• Customer vehicles getting damaged while parked at your dealership
• A faulty repair that causes an accident or injury after the customer leaves your property

Surety Bond And The Rescission Fund

Ohio has a title defect rescission fund which is a pool of money available to customers who suffer damages from a dealership that fails to provide a valid title within 40 days.

It can also reimburse a customer in the following circumstances:

• The title does not stipulate a vehicle has rebuilt salvage
• The title misrepresents the odometer reading
• Hide the fact that a vehicle is a manufacturer "buyback" vehicle

If a customer is a victim of any of these purposeful acts of dealership fraud, they can make a claim to the fund for partial or the full purchase price of the vehicle.

If the claim is valid, the title defect rescission fund will pay the customer of the dealership.

The dealership must pay back the rescission fund to replenish it.

This is why the Dealer Licensing Board requires all used dealers to purchase an auto dealer surety bond.

If the dealer can't pay back the fund with their own business funds the title rescission fund can make a claim against the surety bond for reimbursement.

This Ohio use dealer surety bond is a special type of insurance you purchase for the protection of the title rescission fund.

Property Requirements

You can find this full list on the Dealer Licensing Board page, but your dealership location must meet these requirements:

• Have proof of zoning approval for the city your dealership is located in
• Proof that the dealership is owned or leased
• It must be a separate location from any personal residence or an unrelated business
• The lot must be at least 3,500 square feet
• A display lot must be separated from any other business or service facility and remain that way for the life of the business location
• A permanent office of at least 180 square feet including 3 chairs, desk, filing cabinets for financials, and a landline.
• A permanent sign displaying the business or registered trade name and visible while on property
• The business hours need to be shown at the entrance to the office and the phone number needs to be prominently displayed

If an owner owns a service facility, it can be attached to the dealership property, but not the display lot.

Before or after you submit your application, a state inspector will perform a physical inspection that you must pass to do business.

Dealer License Plates

Used dealers are required to purchase at least one dealer license plate. The total number of plates you're allowed to purchase it based on the number of sales. This number is audited every two years during the license renewal process.

Here is the license plate figures based on dealership sales:

We Would Like To Be Your Surety Bond Partner

We are Surety Bonds Direct, a surety agency. It's our job to find our customer the lowest possible price for the surety bonds they need.

You can request a price quote for the $75,000 bond you need. It only takes a few hours for us to find the lowest price and a few more to have your bond issues. To be safe, plan for 1 to 2 days to have your surety bond completed.

You can also call a bond specialist at: 1-800-608-9950

The important part is getting the lowest price. Because the amount is set by the state, you don't have a choice. Make sure you read about the Ohio used dealer surety bond so you can see example pricing.

I hope this helped answer some of the questions you have as you get through the Ohio used vehicle dealer licensing process.

If you end up getting license surrounding states, learn about their bond requirements:

• Pennsylvania vehicle dealer bond
• Michigan vehicle dealer bond
• Kentucky vehicle dealer bond
• Indiana vehicle dealer bond