How many hours per week does my dealership need to be open?
A dealership must be open at least 12 hours a week. Of these 12 hours, 8 of them must be during the weekday (Monday through Friday). Additionally, your hours must be posted.
I’m opening up my second dealership. Can I use the same name, insurance, bond, etc.?
You can use the same name. However, you must have a business license, bond, insurance, etc., for each location.
If a dealer has 100% ownership of two or more dealerships that all fall under the same corporate umbrella (or common ownership), and a salesman or owner wants to work at multiple locations, that request would have to be made to the Commission via email at MVCMail@tn.gov.
I just received my dealership license, but I need more than three dealer plates. How may I obtain more?
You must sell more than 24 vehicles and submit a list of the cars sold, their sale price, date, and VIN # to the Motor Vehicle Commission via email at MVCMail@tn.gov.
How long do I have to send in a relocation application once I have moved my dealership?
You cannot operate a new dealership until all paperwork has been received and the dealership location is inspected and approved. Please note that the inspector cannot approve your license. The Commission must be notified within thirty (30) days of the move and this can be done through your CORE account.
A new application is only needed if there is a change of business entity ownership.
Salesmen tied to the location must transfer their license through their CORE account.
How do I apply for both a Salesperson license and a Dealer license at the same time?
For a sole proprietorship, the salesperson license is built into the dealer license. For an LLC or Corp, you will submit both at the same time. The salesperson license will be approved once the dealer license is approved.
Who is responsible for collecting sales tax and registering a purchased vehicle?
When a person purchases a vehicle at a dealership, the dealer is responsible for collecting sales tax and registering the vehicle.
Can an owner of a dealership or salesman work at multiple locations?
If a dealer has 100% ownership of two or more dealerships that all fall under the same corporate umbrella (or common ownership) and a salesman or owner wants to work at multiple locations, that request would have to be made to the Commission via email at MVCMail@tn.gov.
What is a "Garage Sales Agreement"?
If a motor vehicle dealer does not have repair facilities at the established place of business to service or repair motor vehicles, a repair garage within a reasonable distance from the licensee's place of business can sign a Service Agreement to render these services.
What is "Financial Disclosure" information?
There is no specific form. Instead, the applicant must have a licensed CPA who works for a licensed firm prepare a balance sheet and a compilation form. The principal owner, directors, or all persons owning more than 5% of the outstanding shares or stock issued by a Corporation, LLC, LLP, or LP must complete the financial disclosure form.
The balance sheet must show at least $10,000 in assets and be less than 12 months old.
The compilation form must contain language that it was compiled using GAAP (Generally Accepted Accounting Principles).