In the state of Oklahoma, new and used auto dealers are governed by two different departments: the Oklahoma Motor Vehicle Commission (OMVC) and the Used Motor Vehicle & Parts Commission (UMVPC).
The OMVC licenses the following dealers:
The UMVPC licenses the following dealers:
Both commission boards meet to process applications on the second Tuesday of each month. If you’re applying for a license governed by the OMVC, you must submit your applications and all required materials at least eight days before the meeting. If your license is governed under the UMVPC, you must submit your documents eleven days prior.
The first step is to establish a location for your business. Establishing a location gives you a business address which you will used to fill out your required documents for business registration, license application, and other forms. Oklahoma requires dealers’ locations to fulfill the following requirements:
The next step is to register your business with the Oklahoma Secretary of State and the Oklahoma Tax Commission. To become a licensed dealer, your dealership must first be a recognized legal entity. The most common types of business structure are the following:
To officially register your business, you must follow the steps below:
Oklahoma requires only used auto dealers to obtain a $25,000 auto dealer bond and used motor vehicle auctioneers to obtain a $50,000 auto dealer bond.
The Oklahoma Auto Dealer Bond is a requirement to ensure that auto dealers fulfill their legal obligations to the state and their professional duties to their clients, providing financial protection for customers. For example, if a dealer were to sell a car without a valid title, the consumer can make a claim against the dealer's auto dealer bond.
The next step is to purchase garage liability insurance. A liability insurance policy with a limit of $25,000 is required.
Garage liability insurance is a specialized form of insurance designed to provide financial protection to businesses that operate in the automotive industry, such as auto repair shops, car dealerships, and service stations. This insurance coverage is tailored to address the unique risks faced by these businesses in their day-to-day operations. It offers protection in situations where the business is held legally liable for bodily injury, property damage, or other third-party claims that occur on their premises or as a result of their operations. Garage liability insurance is essential as it helps cover the costs of legal claims, medical expenses, property repairs, and potential settlements or judgments, ensuring that the business can continue to operate smoothly and safeguard its financial well-being in the face of unexpected accidents or incidents.
For auto dealers, garage liability insurance is a must have and we recommend that you get it through Next Insurance (non-affiliated) as they are one of the best online brokers in the industry.
The next step is to put your application together. The first part of the process is to complete the initial application. The used motor vehicle dealer application and new motor vehicle dealer application request similar information.
The initial application requires the following details about your business:
In addition to filling out the application, you must also submit the following required documents:
After gathering all your documents, you must also write a check to be mailed with the application.
For new motor vehicle dealers, the application costs $300 and your check should be made to the Oklahoma Motor Vehicle Commission.
For used motor vehicle dealers, the costs are detailed in the chart below:
|Type of Dealer||Cost|
|Used Motor Vehicle Dealer||$600|
|Franchised Used Motor Vehicle Dealer||$200|
|Used Motor Vehicle Dealer Auction||$600|
The check or money order should be made to the Used Motor Vehicle and Parts Commission.
Once all of your documents and checks are ready to be submitted, mail them to one of the following addresses depending on what license you are applying for:
Oklahoma Motor Vehicle Commission
4334 N.W. Expressway, Suite 183
Oklahoma City, OK 73116
Used Motor Vehicle and Parts Commission
421 NW 13th Street, Suite 330
Oklahoma City, OK 73103
One owner of your business must attend the Oklahoma motor vehicle dealer education program after you submit your license application. You must attend one class on the Monday before the monthly meeting of the Used Motor Vehicle and Parts Commission. The class is held from 9am to 12:30pm at 421 NW 23th Street, Suite 330, Oklahoma City, OK 73103.
Once your application has been reviewed by the Commission Board, you will be contacted by a site inspector. You will schedule a time to determine when the inspector can take a look at your dealership. If you pass the inspection, you will receive your dealer license through the mail!
All licenses expire on December 31st of each odd number year (i.e. 2023, 2025, etc.). All renewal applications must be submitted on November 1st of the expiration year. A renewal packet will be mailed to your dealership. The renewal fee for new motor vehicle dealers is $200. The renewal fee for used motor vehicle dealers is $300. You will submit your required documents to the same addresses you mailed your license application to.