Q1:

Who is required to have a motor vehicle dealer's license?

A1:

Any person engaged in the business of offering for sale, displaying for sale, or selling motor vehicles at retail, is required to obtain an Ohio dealer's license. Wholesale purchases and sales may be made incidental to, and in support of, engaging in business at retail.

Q2:

Are motor vehicle manufacturers required to have an automobile dealer's license?

A2:

Yes, if sales are made at retail.

Q3:

Are finance companies dealing in motor vehicles required to be licensed?

A3:

Yes. However, finance companies may sell repossessed motor vehicles at retail without obtaining a dealer's license.

Q4:

Are persons engaged in salvaging motor vehicles eligible for a dealer's license?

A4:

No. However, such persons may be eligible for a dealer's license by establishing a motor vehicle dealership entirely separate from the salvage business.

Q5:

Do dealers in new motor vehicles have to have a contract with a manufacturer or distributor for the new motor vehicles they sell?

A5:

Yes.

Q6:

What are the physical requirements for a new car dealer's place of business?

A6:

A new motor vehicle dealership must have and maintain the following minimum physical characteristics to obtain a license:

• Space under roof for the display of at least one new motor vehicle.

• Space under roof for the servicing and repair of at least one new motor vehicle.

• A sign showing the exact name of the business, including any registered trade names, prominently displayed, permanent in nature, and properly maintained. Letters on the sign must be at least six inches high.

• The dealership must be used exclusively for the purpose of offering for sale, displaying for sale, or dealing in motor vehicles.

Q7:

If a new motor vehicle dealer also has an automobile repair service, is the dealership still considered as used exclusively for dealing in motor vehicles?

A7:

Yes, provided that any products or services offered are in support of the business of dealing in motor vehicles.

Q8:

Is a salvage department in a dealership considered as in support of the business of dealing in motor vehicles?

A8:

No. Places of business or departments in a place of business used to dismantle, salvage, or rebuild motor vehicles with used parts are not considered as in support of the business of dealing in motor vehicles.

Q9:

What are the physical requirements for a used car dealer's place of business?

A9:

A used motor vehicle dealership must have and maintain the following minimum physical characteristics to obtain a license:

• The proposed location must be easily accessible from the public roadway and identified as a motor vehicle dealership.

• A display lot of at least 3,500 square feet, not including driveways, with adequate ground cover of a hard surface (gravel, concrete, etc.) to prevent the collection of dust, mud, water, or other unsightly conditions.

• The display lot must be separated from any other business or residence with a permanent physical barrier that is sufficient to deter normal vehicular and pedestrian traffic.

• The barrier must not be able to be removed.

• A permanent office of at least 180 square feet of usable office area, which shall be kept in a neat and orderly fashion. The office must include a desk, three chairs, a filing cabinet, a telephone in service at all times, listed and answered in the dealership's name, and electric lighting and heating sufficient for an office.

• A sign showing the exact name of the business, including any registered trade names, prominently displayed, permanent in nature, and properly maintained. Letters on the sign must be at least six inches high.

• Business hours must be prominently displayed. The business must be open and attended during the posted business hours, by the owner, a partner, president of the corporation, member of a limited liability company, trustee of a business trust, or a licensed salesperson.

• The dealership must be used exclusively for the purpose of offering for sale, displaying for sale, or dealing in motor vehicles.

Q10:

Who needs a salespersons license?

A10:

All employees who offer for sale, display for sale, or sell motor vehicles for a dealer must be licensed. All employees that offer to lease, make available for lease or lease motor vehicles to another person for personal, family, or household use, must be licensed as a salesperson. Salespersons must apply for a license immediately upon being hired by a motor vehicle dealer, and are prohibited from offering for sale, displaying for sale, or selling motor vehicles until licensed.

Q11:

What is required when applying for a license?

A11:

An application for motor vehicle salesperson's license, a completed fingerprint card or an electronic WebCheck must be submitted, along with the $25.00 fee ($10.00 license fee and $15.00 fingerprint card processing fee).  If you elect to use the new electronic method of fingerprinting, do NOT submit the $15.00 fee with the application.

Q12:

For what reason would a salesperson's license application be denied?

A12:

Any felony or misdemeanor conviction relating to dealing in motor vehicles would be reason for denial.

Q13:

What is required if a salesperson leaves the employ of one dealer, and begins working for another?

A13:

The dealer for whom the license was issued must send in a salesperson's termination form. A salesperson's license may be transferred by submitting an application for transfer of license and fee of $4.00.

Q14:

What is a motor vehicle salvage dealer?

A14:

Any person who engages in business primarily for the purpose of selling salvage motor vehicle parts, and secondarily for the purpose of selling salvage motor vehicles or manufacturing or selling a product of gradable scrap metal.

Q15:

What is a motor vehicle salvage auction?

A15:

Any person who, on his own behalf, or as an agent for a third party, engages in business for the purpose of auctioning salvage motor vehicles to motor vehicle salvage dealers.

Q16:

What is a motor vehicle salvage pool?

A16:

Any person who, as an agent for a third party, engages in business for the purpose of storing, displaying, and offering for sale, salvage motor vehicles to motor vehicle salvage dealers.

Q17:

How many motor vehicles can I sell before I must obtain a motor vehicle dealer's license?

A17:

Five (5) motor vehicles within a twelve (12) month period.

Q18:

What are the physical requirements for a motor vehicle salvage dealer's place of business?

A18:

A motor vehicle salvage dealer, salvage pool, or salvage auction must have and maintain the following minimum physical characteristics to obtain a license:

• A minimum area of 50,000 square feet.

• The area must be shielded by a fence between six and ten feet tall that shields the premises from ordinary view. A living hedge of equal or greater height and sufficient density to prevent view of the premises may be substituted for the fence. All inventory of the business must be stored behind the fence or enclosure to promote and preserve a positive visual impact of the salvage yard's business on the surrounding neighborhood.

• An office to conduct business, in a building of at least 225 square feet. The office must have an area devoted to sales transactions, an area with a parts counter, and an office to maintain records.

• A permanent sign in the exact business name as it appears on the application, with letters of at least six (6) inches high. The business sign shall be prominently displayed at or near the entrance of the facility.

• Regular business hours posted in plain view.

• The facility shall be open and attended by someone who may reasonably assist a retail customer during the posted business hours.

Q19:

I was notified by my bank of a returned check written to you or a Deputy Registrar office.  How do I resolve this matter?

A19:

Banks are instructed to send returned checks through a second time.  If the check clears on the second attempt, the BMV does not receive any notice of a returned check.

If you have further questions about a returned check, you may contact the BMV Tax Distribution Section at (614) 752-2084.

Q20:

How do I obtain fingerprints for the background check required for a dealer's or salesperson's license?

A20:

You have two (2) options:

Q21:

How much can a seller entering into a retail installment contract charge a customer for the preparation of documents?

A21: