National Independent Automobile Dealers Association
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Dealer Bond And Licensing Information » Alabama

A $10,000 surety bond is required for all used motor vehicle dealers, rebuilders, reconditioners and wholesalers.  A $25,000 surety bond is required for all new motor vehicle dealers.  A $10,000 bond is required for all automotive dismantlers and parts recyclers.
Dealer License
Dealers must obtain a Regulatory Permit from the Sales, Use & Business Tax Division. The permit must be presented to the county license issuing official for issuance of a Privilege License and license plate, and the Taxpayer Service Center for tag issuance.

Categories of Regulatory Licenses:

New Car Dealer, Used Car Dealer, Dismantler, Wholesaler, Rebuilder, Reconditioner.

Dealers must fulfill the following requirements:

  1. provide evidence that motor vehicle held for resale are covered by a blanket liability insurance policy
  2. display a sign designating the place of business
  3. describe and insure permanency of the place of business
  4. provide display area for one or more vehicles and a place for maintaining books and records.

Motorcycle and trailer dealers are exempt from regulatory permit. Licenses are renewed annually in person or by mail.

Dealer License Fees:

$10.00 per category, plus $45.00 or up to $210.00 for the Privilege License depending upon the city or county of dealership

$225.00 for automotive dismantlers.

Contact the Alabama Independent Automobile Dealers Association for additional information.