Oklahoma Auto Dealer License Guide

Before you can begin work as a car dealer in Oklahoma, you must be licensed through the Oklahoma Motor Vehicle CommissionSuretyBonds.com has developed this quick and easy guide on becoming a licensed Oklahoma auto dealer so you can get started today.

How to become a licensed motor vehicle dealer in Oklahoma

Title 47 of Oklahoma Statutes, §47-583v1 regarding motor vehicles, states that auto dealers must be licensed if they plan to start an Oklahoma automobile dealership. Those who qualify as auto dealers in Oklahoma are people who sell vehicles in Oklahoma, whether new, used, or wholesale. To determine whether you are a candidate for these types of licenses, review the Oklahoma Motor Vehicle Commission Laws.

Candidates must complete the following 10 steps before they are eligible for a license and can submit a completed application.

Step 1: Determine your license type

Licenses are issued by two separate licensing bodies of the Oklahoma Motor Vehicle Commission, depending on the type of license being sought. It is essential that applicants select the most accurate license type, as this can impact the approval of your application.

Step 2: Obtain a license packet

For new motor vehicle dealers, applicants can download the Dealer Initial License Packet from the OMVC website. Additional forms related to the manufacture, distribution, and sale of new motor vehicles can be accessed on the forms page. Be sure to also review the statutes and rules.

Used motor vehicle dealer applicants can access their specific used motor vehicle dealer’s application and wholesale motor vehicle dealer’s application from the Used Motor Vehicle and Parts Commission (UMVPC) website. To access more forms, rules, and regulations applicable to your specific application, visit the UMVPC forms page.

Step 3: Obtain an OSBI report

All applicants who wish to become licensed auto dealers in Oklahoma are required to submit a current report from the Oklahoma State Bureau of Investigation. The report must include all three searches: Name-Based, Sex Offender, and Violent Offender. For more information, contact OSBI at (405) 848-6724 or visit its website.

Step 4: Register your business

To be approved upon submission of the application, applicants must have registered with the State of Oklahoma to start their business. While no general business license is required in Oklahoma, dealers must obtain a sales tax permit from the Oklahoma Tax Commission. Prior to registering with the Commission, Oklahoma dealer applicants need to obtain a Federal Employer Identification Number (FEIN) from the Internal Revenue Service.

NOTE: If your specific application requires a local county or city business license, contact your local licensing office/clerk to learn more.

If the registered business is a corporation, LLC, LP, or LLP, applicants MUST submit a copy of the Certificate Incorporation or LLC OR a current Certificate of Good Standing issued by the Oklahoma Secretary of State. Applicants may contact them at (405) 521-3911.

Step 5: Obtain a permanent business location

All Oklahoma dealers who have a registered business must have an established place of business. It must be noted that new, used, and wholesale dealers vary in terms of location requirements. Both used and wholesale dealers must pass an inspection and obtain approval of the location by a Commission inspector — this may be conducted after submission of and during the review of the application.

 New Motor Vehicle Dealers: 

The established place of business is required to be a permanently enclosed structure or building that cannot be a residence or temporary. The location must include:

  • An indoor showroom

  • A separate office

  • Public areas

  • Restrooms

  • Service and parts area

  • Dedicated parking space

Used Motor Vehicle Dealers:

The established place of business is required to have a permanent structure separate from any sort of residence or other business. This facility must include a restroom accessible to the public.

Wholesale Motor Vehicle Dealers:

The established place of building must be a permanent room or a separate building apart from any other business. “Room” means that dealers are allowed to use a room in their home, as long as it is solely used for the purpose of wholesale dealing.

Below are the following location requirements that ALL new, used, and wholesale motor dealers must adhere to:

  • Submit photos of the outside of the sales office and the permanently mounted business sign; used dealers must also provide a photo of the sales lot.

    • The business sign must reflect the business and not mislead in any way. The sign must match the application business name listed and be at least 32 square feet in size, have mounted permanent lettering at least 6 inches in height, and be visible to viewers near the closest roadway.

  • Include proof of a usable phone that is listed with local directory assistance.

  • Submit a zoning permit (if applicable) from the residing city or county. If there are no zoning requirements listed in your specific application, applicants will need to submit a letter from the appropriate authority stating so.

Step 6: Obtain garage liability insurance

Applicants should have $25,000 worth of single limit garage liability insurance to have their application successfully reviewed. The Certificate of Insurance must be completed by your agent on the license packet’s enclosed UD-7 form, and it is required to reflect the ownership, business name, and lot address as they appear on the initial application. Coverage, in reference to the financial responsibility laws of Oklahoma, shall be kept up to these standards and enforced at all times during the applicant’s period of licensure. If there is a lack of coverage, this will result in automatic license revocation.

NOTE: Secondary lot applicants can submit an amended Certificate of Insurance adding the secondary lot permanent location, business name, and lot addresses.

Step 7: Become bonded

It is required under Oklahoma Statute §47-583v1 that new, used, and wholesale auto dealers post a $25,000 auto dealer bond. These bonds are set in place as a pledge of conducting business without practicing fraud, making fraudulent representations, or violating any provisions of the Oklahoma Motor Vehicle Dealer law. When applicants are bonded, any person who has suffered a financial loss as a result of the principal’s unlawful actions are protected up the full penal sum of the bond.

We can provide your free bond quote within one business day of submitting your application. Call 1 (800) 308-4358 or click here to get started!

Step 8: Complete a pre-licensing course

It is required that used and wholesale dealers must attend an education program administered by the UMVPC. The owner attending may be a sole proprietor, partner, member, or corporate officer. To show proof of attendance, applicants will need to supply sample copies of the approved Condition of Sale documents. This will be given to attendees during the education course. Dealers can access the UMVPC calendar to check class availability and sign up.

NOTE: Your license will not be issued until your attendance has been verified.

Step 9: Compile your documents for application

When completing the dealer application, applicants must be aware of the following documents that are required for the state of Oklahoma:

  1. Company Balance Sheet or Pro Forma

    1. The balance sheet must be certified by an officer of the company and current within the past 60 days. A blank balance sheet form is included in the license packet for your convenience; you may also submit your own, but make sure it is signed and accurate.

  2. History of Business

    1. Provide a brief history of the business and of each owner or executive manager who will be active in the daily operations. Include previous dealership ownership and/or employment.

  3. Obtain a Notary Seal for Notary Public on Application

  4. Affidavit of Extended Service Contracts

    1. If the transaction is a purchase of an automobile dealership or franchise that already exists, the enclosed Affidavit must be completed.

  5. Financial Statements

    1. These may be required on the additional form for corporations and all other ownership types.

  6. Manufacturers and/or Distributors Contacts

    1. Provide the names, addresses, phone numbers, and contact persons for the manufacturers and/or distributors whose products you seek to be licensed to sell.

  7. Dealer Agreements

    1. The dealer application can be submitted without this document, as it can be approved “contingent upon” receipt of the Agreement(s). However, it is important to remember that the actual franchise license(s) will not be issued until the Agreement(s) are received.

  8. Management Agreement

    1. If the buyer is taking over management of a dealership prior to licensing and factory approval, a copy of the Management Agreement must be filed prior to the management change.

Step 10: Submit your dealer license application and pay the associated fees

Once applicants have successfully completed steps 1 through 8, dealers can submit their Oklahoma Dealer License Application and related documentation to the applicable mailing address below.

New motor vehicle dealers may send their documents to:

Oklahoma Motor Vehicle Commission

4334 N.W. Expressway, Suite 183

Oklahoma City, OK 73116

(405) 607-8227

Note: New auto dealer applications are considered by the Board on the second Tuesday of each month. The deadline to submit your application is the Monday eight days prior to the meeting.

Used and wholesale motor vehicle dealers may send their documents to:

Used Motor Vehicle and Parts Commission

2401 NW 23rd, Suite 57,

Oklahoma City, OK 73107

Phone: (405) 521-3600

Fax: (405) 521-3604

Fees

All dealers applying must submit the appropriate fee along with their application:

  • $600 for used car dealer and used car dealer auction licenses

  • $600 for wholesale dealer licenses

  • $200 for franchised used motor vehicle dealers

  • $25 for salesperson registration (only for used dealers)

OMVC Statute Title 47, Section 564 states, “It shall be unlawful for any person to serve in the capacity of a motor vehicle salesperson without first obtaining a license.” For steps on gaining salesperson licensure, visit page 8 of the Application Packet. Note that this cannot happen until a franchise license has been issued (if applicable).

When does my Oklahoma dealer license expire?

When do I need to renew my license?

The terms of the Oklahoma Motor Vehicle Dealer License Commission Laws state that a license is valid for one year. Specifically, licenses expire on June 30 following the date of issue and shall be nontransferable. All applications for renewal of a license for a new motor vehicle dealer, salesperson, manufacturer, distributor, or manufacturer’s or distributor’s representative should be submitted by June 1 of each year to ensure fluid continuance of licensure to continue dealership operations. Such licenses will be issued by July 1.

Need a Surety Bond?

If you’re an Oklahoma motor vehicle dealer in search of a surety bond, call 1 (800) 308-4358 to talk to a SuretyBonds.com surety professional or get a free, no-obligation quote.