Alabama dealer license contact

In October , there were some significant changes made to your Alabama motor vehicle dealers licenses. Regrettably, there are several other changes as a result of this new bill that we need to understand. Some of which will also affect your Alabama surety bond. We took the time to read the entirety of HB , so we could highlight the most important changes.

We also want you to understand what these changes mean for your bond. Understandably, surety bonds are something that cause many people confusion. A surety bond is a three-party contract between the Principal you , the Obligee the entity requiring you to get the bond , and the Surety the insurance company who guarantees the bond.

Upon the renewal of your license, the renewal of your bond will be unlike the year before. Unfortunately, the Alabama Department of Revenue has made it abundantly clear that a rider— a change to the original bond—for the bond amount increase will not be accepted. As a result, your current surety bond will need to be canceled and rewritten.

Not only that, but the Obligee now requires the bond to be written on a new bond form. The Obligee will pre-fill out the bond form and then provide it to you after you apply for your renewal. This change will likely double your current premium. A regulatory license, which you get through the Alabama Department of Revenue by filling out an application first read the instructions.

You must obtain this license before applying for a privilege license. The other license you'll need is your business license, or privilege license. The fees associated with this license are based on your city's population.

You may apply for your auto dealer's privilege license at your local county probate office or with your local license commissioner. Before a license will be issued, you must:. Included in this bonding process is the dealer becoming a designated agent. In the event you need to change bonding companies you must file a new bond with the Motor Vehicle Division before the previous one is cancelled.

Your license will be revoked if the bond is cancelled without a new one already in place,. Any dealer who holds a valid dealer's license may apply for dealers' tags at the dealership's county courthouse. For more information, call The sale location must be in the same city or county where you are licensed. You may also need a separate dealer privilege license for the tent sale, and you should check with your local governments to determine whether additional local fees or licenses are required.

Alabama has the following categories of licenses for car dealers: New car dealer OR used vehicle Wholesaler Rebuilder Retailers can sell to the public and are required to collect sales tax, so a sales tax number is required for that category prior to licensing.

Before a license will be issued, you must: Complete an application form.