Illinois auto dealer license requirements

Before you are granted an Illinois Dealers License you must show the Illinois Secretary of State that you have a dealer garage insurance policy. A dealer garage policy will protect your customers when they are test driving your motor vehicles.

You dealer insurance policy must not expire before December 31 of the year you are licensed or you may have your IL Dealer License suspended or revoked.

You may obtain your Illnois dealer insurance by clicking here. An Illinois Dealer Surety Bond protects customers against fraudulent dealers. If you operate your dealership with the highest ethical standards you will never have to cash in your Illinois Dealer Surety bond. You bond prices will be dependent on your credit scores. Good credit scores will have lower bond pricing and low credit scores will lead to higher bond prices.

You will be required to pass an Illinois Background Check before the Illnois Secretary of State issues your dealer license. The State of Illinois wants to make sure they are not licenseing any known felons or anyone that has commited automotive type crimes such as odometer tampering or auto theft. Contact any of the following companies to conduct your Illnois Dealer background check.

You Accurate Biometrics N. Milwaukee, Ste. The dealer is required to furnish such bond for a period of 36 consecutive months. Special plates issued to a dealer may be displayed upon any vehicle held for sale or resale, and. Notwithstanding the above limitations, Dealer Plates may be used on a one-trip demonstration basis by a prospective bona fide buyer carrying cargo or merchandise, providing that the form of document specified herein is carried in the cab of the vehicle.

Any demonstration movement shall be limited to a period of 3 days. Each dealer who wishes to grant to a prospective bona fide buyer the use of a dealer plate on a one-trip cargo carrying demonstration for three days shall prepare a document identical to this form in duplicate, and retain one copy in the office of the dealer and issue one copy to the user for display on the vehicle.

Each dealer shall file an annual report listing the name of each prospective buyer permitted to make a demonstration trip with a vehicle identifying the plate number utilized and the dates that the demonstration trip began and ended.

The Secretary of State may prescribe the form of such report. The Secretary of State may, in addition, grant in his discretion, a pen-nit for a one-trip demonstration in excess of 3 days upon application therefor and showing of good cause.

Illinois law requires that all dealers keep complete records on each vehicle bought or sold. These records are required to be kept in a bound ledger Police Book or electronic data processing system,. Licensees who do not maintain electronic data processing record-keeping systems shall maintain, for three years, the necessary information in a bound ledger book of a double entry type to be titled as follows:.

Licensees who maintain their records in an electronic data record keeping system shall maintain, for three years, the required information. These records shall be accessible as follows:. The records now required to be kept by licensees with the exception of scrap processors include:. If it is determined that this has happened the vehicle should not be acquired and law enforcement authorities must be promptly notified.

Over the past few years, Illinois laws have become more specific in identifying what is meant by "essential parts" or parts that must be tracked through the system. Essential parts include the following:.

By law, an essential part which does not have an identification number affixed by manufacturer as a means of identification shall adopt the identification number of the vehicle to which it is affixed, installed or mounted.

To track the life of these essential parts, the parts are required to be recorded on a form called the "Uniform Invoice. Each will retain a copy of the "Uniform Invoice" for each transaction. Every essential part must indicate a VIN number, including the essential parts brought in from other states.

Insurance companies paying a total loss claim must apply for a salvage certificate. Abandoned vehicles or vehicles with possessory liens by commercial relocators that are subsequently sold at a public auction can only be issued either a salvage certificate if it is seven years of age or newer or a junking certificate if it is eight years of age or older. IADA has developed a legal form which is available to protect dealers who take in trades that may be salvage or rebuilt vehicles.

IADA Form A salvage vehicle can either be rebuilt by a licensed rebuilder or salvaged into parts. A junk vehicle can be disassembled into parts or crushed or otherwise disposed of. A junk tided vehicle can never receive a title which will allow it to be registered in Illinois. A rebuilt salvage vehicle can be registered upon completion of appropriate inspection.

In order for this to happen, the licensed rebuilder the only entity who can legally apply must take the vehicle to a Secretary of State inspection station and have the vehicle physically inspected before a REBUILT title can be issued. The purpose of these inspections is to identify stolen "essential parts" and to inspect all ownership documents.

The inspection is not intended to certify the safety or road-worthiness of the vehicle or the quality of the workmanship. The first way does require you to get a location, insurance, surety bond, take a test and a few other things click here for dealer license requirements and applications …in order to qualify for a used car dealer license.

The illinois department of revenue issues the certificate of registration sales tax. The start and end dates of your contract with the franchisor. To get licensed, you need to fulfill a number of requirements such as to obtain an illinois auto dealer bond that guarantees you will comply with dealer regulations and conduct business in an honest manner. Used motor vehicle dealer license:Victor to get access to the dealer only auctions you are required by the auction to have a dealer license.

Visit dmv. We compiled a summary of the steps you may expect during the process: We even show you where to get the money to buy the cars for your new car business. What are the illinois dealer license requirements? Year secretary of state dealer license application jesse white secretary of state vehicle services department dealer licensing section s. You can align yourself with an auction access dealer and get access to the cars auctions and other dealership functions.

You will be trained and mentored by active car dealers, all of whom have extensive industry experience. New-car vs. Used-car Dealers Most requirements for new and used motor vehicle dealers are similar. Keeping Up-to-date The Dealers and Remitters Bulletin is issued whenever changes in the law or their application require it.