Alabama Chronological Dealer Pre-License Checklist

  1. Take Alabama Dealer Video Course - I always recommend taking one of my dealer pre-license courses before you get started.
    My Alabama Dealer Pre-License course is not required by the state of Alabama. It is optional but it will expadite the entire Alabama dealer licensing process
  2. Create Alabama Business Entity - You must establish your business entity before you apply for your license
    Before you apply for your license you must establish a business entity with the Alabama Secretary of State, obtain an employer ID number, and a local business license. Our preferred partners can handle the entire business entity registration process for you for a minimal fee. Click on the "Create Alabama Business Entity" link then click the yellow "Start a Business Now" button, then select "Alabama" from the drop down menu and select the options that are best for you. If you have any questios you will be connected to Tracy Newman our Business Entity Registration Specialist.
  3. Obtain Dealer Surety Bond - Use this link for our Automated Bond Quoting System. With good credit your bond should cost around $400 to $500. With bad credit you can make low monthly payments on your bond.
    If you click on the "Obtain Dealer Surety Bond" link you will be connected to my automated surety bond quoting system that will match your credit score with the bond company that specializes in issuing bonds to dealers with your credit score. I believe this will lead to the lowest bond quote on the first quote. Use the link to quote and bond in moments. (Please note Alabama requires a $50,000 Motor Vehicle Master Dealer Obligee: Alabama Department of Revenue - Motor Vehicle Division)
  4. Ensure Location is Zoned for Dealer License-Location must be zoned for a dealer license. If located in a city, contact your city zoning office. If located in a county, contact the county courthouse.
    Use Google or an AI search tool using terms such as Alabama Dealer Office, Dealer Lot For Rent or Sale. You can also check Craigslist, LoopNet, Crexi, CommercialSearch, and Rightmove. I will discuss location requirements extensively in your Alabama Dealer Pre-License Course
  5. Obtain Business Insurance- The State of Alabama requires dealers to be insured at all times.
    At mimimum you will need a $25,000 bodily injury/person/accident, $50,000 combined bodily injury/accident, $25,000 property damage/accident or a combined single limit of $75,000/accident. Your insurance agent will be able to explain the coverages more in depth.
  6. Apply for License at Alabama Partner Registration Portal - When you have completed all of your pre-license steps you will scan some documents then upload them at the AL Partner Portal.
    I cover the entire dealer application process in your Alabama dealer pre-license course so you will submit your application correctly. This will assist you in getting your dealer license approved as soon as possible.
  7. Dealer License is Granted - The State should issue your Dealer License in 30 to 45 days. You can then enter dealer auctions, buy vehicles at wholesale, and sell them at retail .
    After your application approved, the State will notify you via email that you are licensed. Once you are licensed you can print your dealer license from the eLICENSING website. I cover the entire licensing process in depth in your Texas Dealer Pre-License Course

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    Thank You Very Much!

    Good luck with your new business,
    Delus Johnson

    Delus Johnson