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MEMO 2020-006 Dealer License and Tag Changes

Posted: October 1, 2020

TO: Licensing Officials
SUBJECT: Dealer License and Tag Changes

Last year the Alabama Legislature adopted a comprehensive bill (Act 2019-244) to update the laws impacting dealer licensing, dealer tags and other related issues. The provisions were based on recommendations by the Alabama Task Force to Combat Curbstoning to help eliminate the illegal sales of motor vehicles by unlicensed individuals and the consumer problems they cause. Most of those provisions become effective October 1, 2020, and were discussed at the county licensing conferences.

Master Dealer License The law provides for a Master Dealer License with two categories of “new dealers” and “used dealers”.  The wholesale and rebuilder licenses were eliminated. The amount of the dealer license increased from $25 to $125. The dealer and designated bond amount increased from $25,000 to $50,000. The license is issued through the MVD licensing portal at https://mvlicense.mvtrip.alabama.gov.

Master Off-Site Sale LicenseThe law provides for a new Master Off-Site Sale License issued by the department through the MVD licensing portal and establishes a “facilitator” of an off-site sale. A “facilitator” is a person or his designee who facilitates an off-site sale, such as the owner of the property, a credit union or bank, or another entity that arranges the sale.  

Dealer and Manufacturer PlatesThe law provides that dealer and manufacturer license plates will now be issued by the department instead of the counties. Issuance of the plates will be contingent upon proof of the appropriate county privilege licenses. Dealers and manufacturers should be directed to the MVD licensing portal.

Dealer Transit PlatesDealer Transit (DT) plates will no longer be issued after September 30, 2020.

Motor Vehicle Auction License – The law provides for the licensing of wholesale auctions and provides uniform licensing provisions similar to the Master Dealer License. The license is issued by the department through the MVD licensing portal. A person engaged in the business of a wholesale auction must be licensed and is subject to electronic reporting requirements.

Please contact the Motor Vehicle Division at 334-242-9000 or MVD@revenue.alabama.gov if you have any questions regarding this memo.  

Click here to download a PDF version of this memo.