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FAQ Categories / Tax: Dealer License

All licensees are required to submit to the department a continuous bond in the amount of $50,000. All dealers are required by law to become designated agents of the department. The dealer bond also satisfies the designated agent bonding requirement. (Section 40-12-398, Code of Alabama 1975)
  • Master Dealer License: $125
  • Each additional place of business: $5
  • Off-site sales license: $25
  • Master Off-site Sales License: $25

(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:

  • $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

(§402-12-392, Code of Ala. 1975)

Processing time is approximately 3-5 business days from when the documents are received by our Department.
You can only obtain the bond and insurance form by applying for a dealer license.
All new and used motor vehicle dealers, including motorcycle and trailer dealers (excluding trailers not subject to titling), wholesale dealers, and rebuilders. (Section 40-12-391, Code of Alabama 1975)

To print or reprint your license, login to MyDMV and then from the Business Management tab, click the View Letters hyperlink. Your Dealer License should be listed and to print or reprint, select the print button.

The primary location is included in the license fee. There is a $5.00 charge per additional location. (Section 40-12-395, Code of Alabama 1975)
A $5 fee is only required when additional locations are added to the license.
The licensed dealer must apply for an off-site sales event license at least 10 calendar day prior to conducting the off-site sale. The application fee is $25. The off-site sale events shall not exceed 3 per dealer license year with each sale not to exceed 10 consecutive calendar days in duration. A temporary sign must be displayed at the location where the off-site sale is conducted. A facilitator of an off-site sale will be required to obtain a master off-site sales license. The facilitator will be required to verify the off-site license of participating dealers. The facilitator must list each participating dealer’s off-site sale license number on the application. If the dealer and facilitator are the same entity, only the master off-site sales event license is required. (Section 40-12-395, Code of Alabama 1975)

Motor vehicle dealers must electronically update their dealer license information using MyDMV. A new insurance certificate and proof of power must be provided for the new location. Retail dealers must also furnish photographs of the new location and signage.

All dealers are required to become a designated agent.
Licenses are not mailed. When your application has been approved, you will receive an email instructing you to login to the system and print your license.

Designated Agent Qualification Requirements:

  • Licensed Alabama motor vehicle dealers must have a current dealer license.
  • Licensed financial institutions – Submit a copy of their Title 5, Chapter 19, State Banking License or equivalent.
  • Pawnshops – Submit copy of Alabama Pawnshop License.
  • Insurance companies
  • Towing companies
  • Out of state financial institutions (manufactured homes only) – Submit copy of company’s State business or regulatory license.
  • Law Firms (manufactured homes only) – Submit copy of document evidencing that a principal of the firm is admitted to the State Bar.
  • Title Agents (manufactured homes only) – Submit copy of certificate of authority issued by the Alabama Department of Insurance.

Apply to become a designated agent by visiting MyDMV and Register as an Alabama Partner. 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 the application is approved by ALDOR the Designated Agent account will be set up in MyDMV.

All designated agents are required to complete their Designated Agent Training courses online before their access is granted. Once the training is complete the Designated Agent is allowed to process title applications through MyDMV.


Passwords are not stored in our system, please click on “Forgot username or password” and a confirmation email will then be sent with a link to reset the password.

No. The applicant must have an established place of business in Alabama. Please click on the link below for the established place of business requirements.


Please click “Forgot Your User Name” and when prompted enter your email address on file. An email will be sent with your username.

Applications for an Alabama dealer regulatory license must be submitted to the department electronically through the Alabama Partner Registration available in MyDMV.

Upon submission of the license application, a transmittal sheet will be provided that lists which documents must be submitted to the department.

Note: If there are outstanding liabilities resulting from penalty assessments for license plates, licenses will not be renewed.

Yes, all designated agents are required to complete their designated agent training online.

Dealer and motorcycle dealer plate restrictions:

  • New motor vehicle dealers may obtain a combined total of 35 dealer and motorcycle dealer license plates.
  • Used motor vehicle dealers may obtain a combined total of 5 dealer and motorcycle dealer license plates.
  • Licensed new or used dealers may purchase an additional combined total of 25 dealer and motorcycle dealer license plates if they complete applications for certificates of title for 300 or more title transfers in this state during the previous dealer regulatory license year.

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)

  • May be used on vehicles on temporary loan from a dealer to a customer whose vehicle is being serviced or repaired by the dealer.
  • May be used on vehicles on temporary loan to a high school for the purpose of student driver education.
  •  May only be displayed on vehicles in the dealer’s/manufacturer’s inventory.
  • May be used for one payload trip only on trucks or truck tractors in a dealer’s inventory with more than 2 axles on the power unit or a GVW exceeding 26,000 pounds. Limited to 72 hours of usage.

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 and Manufacturer plates may be requested while the designated agent is logged in their MyDMV account.

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.

• New or used dealers or wholesalers may transport vehicles within their inventory using these plates.

• Motor vehicle rebuilders may use dealer transit plates to move vehicles to and from repair points as necessary to complete the restoration, or may be moved as permitted by ALDOR for inspection.

If the dealer, rebuilder, or wholesaler license is revoked or forfeited, all dealer/dealer transit plates shall be returned to the license plate issuing official within 10 calendar days.