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  • Are all dealers required to be a designated agent?

Are all dealers required to be a designated agent?

All dealers are required to become a designated agent.

All dealers are required to become a designated agent.
Related FAQs in Dealer License, Designated Agent

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.

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

(ยง402-12-392, Code of Ala. 1975)

Processing time is approximately 3-5 business days from when the documents are received by our Department.