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How to Get a Wholesale Auto License in Alabama

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In Alabama, if you want to purchase and sell cars wholesale, you need an automobile regulatory license. According to the Alabama Department of Revenue, a wholesale auto dealer sells vehicles to other auto dealers and is not required to have a sales tax number. You can either fill out your application form and mail it in or submit your application online.

Paper Application

Download the Automobile Regulatory License application and the Continuation Certificate from the Alabama Department of Revenue’s website (see reference).

Fill out the application completely. Include your business name, what you are applying for (check "Motor Vehicles Wholesalers"), contact information, the dealer bond amount and your signature.

Fill out the bond form for a used car dealer or wholesaler (see resource). According to the Alabama Department of Revenue, the dealer bond is $25,000 for new car dealers and $10,000 for used car dealers, wholesalers and rebuilders, as of 2010. Include the name and address of the company providing the coverage, the issue date of the bond and telephone number of the agent. Send this bond form in with your application.

Include a check or money order for $10 for the automobile regulatory license fee.

Include proof of liability insurance. According to the Alabama Department of Revenue, the certificate of liability insurance should come from your agent. Also provide proof of an operable, land line telephone at the location of your business. You can submit a copy of your recent telephone bill with your business name and the business address.

Mail the completed application and supplemental forms to the Alabama Department of Revenue, Sales, Use and Tax Division. The address is located on their website as well as on the forms you have filled out.

Online Application

Submit your application online from the Alabama Department of Revenue's website (see resource).

Select “New” to indicate that you are applying for a new license. Click “Start Application.” A new window will open. Complete the full application. The site will provide instructions for how to send the insurance certificate and proof of a land line telephone.

Submit your online application form. Your order I.D. number will be sent to your email address. You can use the order I.D. number to check the status of your application by visiting the same website.

Tip

Applying online can make the process easier and you can pay the $10 license fee with a debit or credit card.

About the Author

Based in New Jersey, Ashley Leonard has been writing professionally since 2007. Her articles have appeared on rsportscars.com and various other websites. Leonard holds a Bachelor of Arts in communications from Marymount Manhattan College.

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