(Off-site sales licenses must be purchased at least 10 calendar days prior to sale.)
Each dealer must maintain blanket liability insurance coverage for all vehicles owned or associated with the business.
Minimum insurance limits are:
(§402-12-392, Code of Ala. 1975)
Designated Agent Qualification Requirements:
Access the designated agent package (ALTS).Please note: the dealer regulatory license bond satisfies the designated agent bonding requirement. Non-dealers are required to post a surety bond in the amount of $50,000, payable to the State of Alabama.
When a completed package is received by ALDOR, the designated agent account will be set up in ALTS, and a designated agent certificate will be sent to the applicant.
All designated agents are required to complete a training course before their ALTS account is activated and they are allowed to process title applications through ALTS.
Upon activation, the administrator can create additional users for the dealer and submit title applications.
Dealer and motorcycle dealer plate restrictions:
There are no limitations on the number of manufacturer and motorcycle manufacturer plates that can be purchased by manufacturers. (§40-12-264, Code of Ala. 1975)
If the dealer charges customers a fee for the uses above, dealer plates cannot be displayed on the vehicle. Motor vehicle dealers may display standard plates on vehicles in a dealer’s inventory. Ad valorem tax is not due when this occurs. (§40-12-264, Code of Ala. 1975)
After the dealer license has been obtained, the dealer must visit the county licensing office to purchase the appropriate privilege license(s) (Sections 40-12-51, 40-12-62, or 40-12-169).
Dealer plates will be issued by the Department of Revenue, contingent upon proof of the appropriate privilege licenses.
Dealer plates may be requested in the Motor Vehicle License portal.
Manufacturers must present their Section 87 license in order to purchase manufacturer license plates.
If a dealer or manufacturer license plate is lost or stolen, this fact must be reported to law enforcement and a report maintained for audit purposes.
If a plate becomes mutilated to the point that it is illegible, the plate must be returned to ALDOR, and a replacement plate will be issued upon payment of the appropriate fee (§40-12-265, Code of Ala. 1975).
If a dealer withdraws a vehicle from inventory, the licensed dealer shall purchase an Alabama license plate and register the vehicle.
Motor vehicle dealer, motorcycle dealer, and manufacturer license plates may not be used in lieu of regular issued license plates as a means of avoiding registration and ad valorem tax requirements.