How to get a car auction license

Question

Kate Swindlehurst · Accepted Answer

The requirements for a car auction license vary by state. Car auction licenses are issued at the state level through the state's Department of Motor Vehicles, so it is important to check with your state to see the exact requirements. There are standard requirements that are typically needed in almost every state.

Typically, you need to first obtain a business license from your state and also obtain an Employer Identification Number (EIN) from the IRS. Generally, states require you to have a lot for the auction to occur before you can become licensed, so you need to find a place to either lease or buy. You should also obtain an auto dealer bond before submitting your application.

You then need to complete your car auction license application. It includes all the information from above as well as your personal information. Typically, passing a background check is required for the application to be accepted. You also need to pay a fee, which can range anywhere from $50 to $500, depending on your state's requirements.