Starting a used car dealership in Missouri can be a rewarding business venture, but before you can legally sell vehicles, you need to obtain a used car dealer’s license.
Whether you’re planning to sell a few cars or run a full-scale dealership, it’s crucial to follow the legal requirements set by the state.
In this blog, we’ll guide you through the process of obtaining your dealer’s license and explore why purchasing inventory from auctions like Twin Cities Auctions is a great strategy for your business.
Key Takeaways
- Missouri requires a dealer’s license to legally sell used cars, but you can sell up to 5 vehicles per year without a license.
- You must complete an application, submit required documentation, and pass an inspection.
- The Missouri Department of Revenue (DOR) is responsible for dealer licensing.
- Auctions such as Twin Cities Auctions offer a reliable source of inventory at competitive prices.
Step by Step Process: How to Get a Used Car Dealer’s License in Missouri
Step 1: Meet Eligibility Requirements
Before you can apply for a used car dealer’s license, you need to meet the basic eligibility requirements:
- Minimum Age: You must be at least 18 years old to apply for a license.
- Criminal Background: You’ll need to pass a criminal background check. Felony convictions related to auto sales, fraud, or theft may disqualify you from obtaining a license.
- Business Location: You must have a physical location for your dealership that complies with Missouri zoning laws and meets all safety regulations.
- Liability Insurance: Proof of insurance is required to cover your dealership and customers in the event of an accident.
Step 2: Choose the Right Type of License
Missouri offers several types of dealer licenses based on the type of business you plan to run:
- Motor Vehicle Dealer (Used): For those who wish to buy, sell, or trade used vehicles.
- Wholesale Dealer: For dealers who buy and sell vehicles exclusively to other licensed dealers (no sales to the public).
- Public Consignment Auction Dealer: For dealers who operate public vehicle auctions.
Choose the license type that best suits your business model.
Step 3: Register Your Business
To operate legally in Missouri, you must first register your business:
- Register with the Missouri Secretary of State to officially establish your business entity.
- Obtain an Employer Identification Number (EIN) from the IRS for tax purposes.
- Apply for a Sales Tax Permit through the Missouri Department of Revenue (DOR) to collect and remit sales tax on vehicle sales.
Step 4: Submit Your Application
Once your business is registered, you can submit your application to the Missouri Department of Revenue (DOR). The application requires:
- Personal and business information including your name, business address, and ownership details.
- Proof of business registration and sales tax permit.
- Criminal background check consent form for the applicants.
- Proof of liability insurance to ensure compliance with Missouri’s insurance requirements.
For more details on how to submit your application, visit the Missouri DOR’s official page: Missouri Dealer Licensing.
Step 5: Pay the Application Fee
When submitting your application, you will need to pay a non-refundable application fee. The fee typically ranges from $100 to $500, depending on the type of dealership and the specific location.
Step 6: Complete the Dealer Education Course (Required for First-Time Applicants)
Missouri requires first-time used motor vehicle dealers to complete a Dealer Educational Seminar.
The seminar covers the basics of dealership operations, legal obligations, consumer protection laws, and other critical information to ensure compliance with state and federal regulations. This course is generally 4 to 6 hours in duration.
Step 7: Schedule and Pass the Inspection
After your application is submitted, the Missouri DOR will schedule an inspection of your dealership.
The inspection ensures that your dealership complies with zoning and safety regulations, such as having adequate space to display vehicles and a functioning office. Once the inspection is passed, your dealership will be one step closer to receiving the license.
Step 8: Wait for License Approval
Once your application is processed, the inspection is completed, and everything checks out, your application will be reviewed, and you’ll receive your used car dealer’s license.
The approval process typically takes about 3 to 6 weeks, depending on the volume of applications and the completeness of your paperwork.
Dealer Licensing Requirements in Missouri
Here’s a quick overview of the key requirements for obtaining a used car dealer’s license in Missouri:
| Requirement | Details |
| Age | Must be 18 years or older |
| Business Location | Must have a physical location for vehicle sales |
| Insurance | Proof of liability insurance is required |
| Background Check | Must pass a criminal background check |
| Dealer Education | Required for first-time used vehicle dealers |
| Application Fee | $100 to $500 depending on dealership type |
| Sales Tax Permit | Required to collect sales tax |
| Sales Limit | Can sell up to 5 vehicles per year without a license in Missouri |
Why Auctions Are a Smart Choice for Vehicle Sales
When you’re building your inventory, using auctions can be a smart choice for sourcing vehicles. Twin Cities Auctions, based in Minnesota, is one such reputable auction house that offers a wide range of vehicles at competitive prices.
Key Benefits of Buying from Auctions:
- Wide Selection: Auctions like Twin Cities Auctions offer a variety of vehicles, from low-budget cars to high-end models.
- Competitive Pricing: Auctions often offer vehicles at prices below retail value, enabling dealers to maximize their profit margins.
- Transparency: Auctions provide full vehicle history reports, so you know exactly what you’re buying.
- Convenient Bidding: Many auctions offer online bidding for your convenience, making it easier to source vehicles without being physically present.
Twin Cities Auctions: A Smart Vehicle Sourcing Choice
For those in the automotive industry, Twin Cities Auctions offers an excellent platform for sourcing quality vehicles at competitive prices.
Whether you are just starting or expanding your business, this auction house provides transparency, competitive pricing, and a broad selection.
| Feature | Description |
| Inventory Variety | Wide range of cars, trucks, and SUVs available |
| Competitive Pricing | Below-market pricing allows for higher profit margins |
| Vehicle History Reports | Detailed history reports for every vehicle |
| Online Bidding | Convenient online bidding options for dealers |
| Financing Options | Financing available to help with inventory purchases |
Practical Tips for Sellers and Dealers
Once you’ve obtained your used car dealer’s license, here are a few tips for running a successful dealership:
- Stay Informed on State Regulations: Ensure you are up to date on Missouri’s laws regarding vehicle sales, taxes, and dealer responsibilities.
- Maintain Accurate Records: Keep detailed records of all vehicle transactions, including repairs, sales contracts, and customer information.
- Transparency: Always be transparent with customers about the vehicles you’re selling. Provide full vehicle history reports and disclose any known issues to build trust and avoid legal issues.
Conclusion
Getting a used car dealer’s license in Missouri is a necessary step to run a legal and successful dealership. By following the required steps—meeting eligibility criteria, choosing the right license type, submitting your application, completing the required education, passing the inspection, and sourcing inventory through auctions like Twin Cities Auctions, you can establish a thriving business.
Find Your Next Ride Online at Twin Cities Auctions—No Dealer License Required
Searching for your next vehicle? Twin Cities Auctions offers an online, transparent car auction experience that’s accessible to everyone, no dealer license needed. Browse and bid on a diverse selection of quality vehicles from the comfort of your home.
Whether you’re a first-time buyer or an experienced trader, our clear, honest bidding process ensures you can make informed decisions in a supportive environment. Join our next online auction and discover how effortless and enjoyable finding your next car can be with Twin Cities Auctions!
Looking for more options? Explore our comprehensive list of all available car auctions across the United States. Your next deal might be just a click away!
FAQ
How many cars can I sell without a license in Missouri?
In Missouri, you can legally sell up to 5 vehicles per year without a dealer’s license.
What documents do I need to apply for a used car dealer’s license in Missouri?
You’ll need proof of business registration, proof of insurance, a criminal background check, and a certificate from the dealer education course.
How long does it take to get a used car dealer’s license in Missouri?
It typically takes about 3 to 6 weeks from submitting your application to receiving your license.
Do I need to complete a dealer education course in Missouri?
Yes, first-time used vehicle dealers in Missouri are required to complete a Dealer Educational Seminar.
How much does a used car dealer’s license cost in Missouri?
The application fee for a used car dealer’s license ranges from $100 to $500, depending on the dealership type.
Can I sell cars online if I have a used car dealer’s license in Missouri?
Yes, you can sell cars online as long as you comply with Missouri’s state regulations.
How do I schedule the dealership inspection in Missouri?
Once your application is reviewed, the Missouri DOR will contact you to schedule your dealership inspection.
Where can I buy cars for my dealership in Missouri?
You can purchase vehicles from Twin Cities Auctions, which offers a variety of cars, trucks, and SUVs at competitive auction prices.