STATE OF TENNESSEE DEPARTMENT OF COMMERCE AND INSURANCE DIVISION OF REGULATORY BOARDS

STATE OF TENNESSEE
DEPARTMENT OF COMMERCE AND INSURANCE
DIVISION OF REGULATORY BOARDS
MOTOR VEHICLE COMMISSION
500 JAMES ROBERTSON PARKWAY, 5th FLOOR
NASHVILLE, TENNESSEE 37243-1153
PHONE 615-741-2711
FAX (615) 741-0651
MINIMUM REQUIREMENTS FOR
TENNESSEE MOTOR VEHICLE DEALER LICENSE
The following requirements must be met (or exceeded) to complete the Application Form for
submission to the Commission office for review and final approval.
1. Established Place of Business- Applicants must have a permanent
facility used exclusively for the motor vehicle dealership. The facility
must be physically separate and apart from other business
operations and shall not include a private residence of any sort.
The facility may be connected to another business provided there
solid wall with no interior doors between the two
businesses and the motor vehicle facility has a separate, outside
entrance and exit. Any doors between the businesses shall be
permanently sealed. Temporary facilities are prohibited. Please
send pictures that include the entire display lot, sign, hours & days of operation,
posted landline phone, office, and restroom accommodations. Pictures to be taken
from the street showing all entrances and exits. The office must be 288 square feet
and that does not include the restroom. The facility must provide for functioning
restroom accommodations. Must have a land line phone number must be posted on
window or sign and listed in the directory. All motor vehicle dealers shall be open at
their established place of business a minimum of three days a week that total 12
hours with 8 hours being Monday-Friday. These hours shall be posted either on the
door to the dealership or on the dealership sign. The facility shall have capable of
accommodating fifteen (15) motor vehicles of the dealership’s product line and three
(3) for customer parking. The lot shall consist of compacted gravel, chert, stone or
similar materials and shall not include grass. See Rule 0960-01-.21 Motor Vehicle
Dealer Facilities.
2. Sign Requirements- Minimum of eight (8) inch letters of the entire dealership name
including LLC or INC if applicable. The sign must be permanently installed and clearly
visible from the road. Banners are not acceptable.
3. Insurance- Insurance Only a Certificate of Liability with a minimum of $300,000.00 per
occurrence indicating Garage Liability or equivalent must be submitted with each
application. The Certificate must indicate the complete name of the dealership that
matches exactly the name on the application and physical business address. It must
include a policy period. Coverage must be continued in force for the life of the license. The
certificate holder must be the Tennessee Motor Vehicle Commission at the above address.
Applicable worker’s compensation insurance may be shown on the same certificate.
4. Business Tax- A current business tax license issued by the County
clerk and if applicable a city license must be obtained in the name of License that exactly
matches the application of the entity to be licensed. If a dba is being used this must be
reflected on the license. These licensed should be a Class 2.
5. Sales Tax- A copy of the current Certificate of Registration/Sales & Use tax certificate with
the ID number and name that exactly matches the application. If a dba is being used it
must appear on the certificate.
6. Financial Background Disclosure- The principal owner or if a partnership each partner
must complete the financial background disclosure form. If an LLC the principal owner
must sign the form and provide to the Commission. Form provided.
7. Financial Statement- A compiled financial statement indicating a minimum net worth of
$10,000.00 accompanied by a compilation letter on the CPA’s letterhead & include the
CPA’s license #. The compiled financial statement must be prepared in accordance with
generally accepted accounting principles dated not earlier than twelve (12) months prior to
the date of the application. If the CPA is not in the State of Tennessee a copy of the CPA’s
license must be furnished.
8. Corporation/LLC/LLP- If applicable, a copy of the charter or articles or organization of the
entity as filed with the Tennessee Secretary of State must be provided, or if out-of state
corporation or LLC provide a copy of Certificate of Authority to do business in Tennessee.
Also, even if you own 100% interest in the Corporation, or are the only member of the LLC
you will need a separate Salesperson license if your intention is to sell on behalf of the
dealership. A stockholders form is required even if the entity is an LLC. This is to be
completed and include the name of any officer or member that owns more than 5% of the
entity. Please provide the home address and cell phone # for each listed stockholder.
Form provided.
9. Zoning Compliance- Written approval from the local zoning/land-use
Authority must be provided. In localities without zoning requirements, a
written statement to this effect must be obtained from the authorized
county or municipal official. Typically, these statements are prepared
by the Office of the County Executive, or Office of the Municipality
Mayor. The address must be stated on the letter and state that automobile sales is a
permitted use.
10. Surety Bond - The surety bond minimum is $ 50,000.00. The duration of two (2) years
beginning in the month of the expected license issuance and expiring on the last day of
the same month two (2) years later. Only the original surety bond is acceptable and is to
be signed by the principal owner of the dealership or if a partnership any partner must sign
and must be submitted to the Commission with the license application. If a partnership, all
partner’s names must be listed. If a dba name is being used the bond has to reflect this.
The name on the bond MUST be the same as the entity to be licensed and the dealer
address MUST be the physical address of the dealership.
11. Conviction Record- If any owner or member of a corporation has been convicted of a
felony, the applicant must furnish a copy of the final disposition papers. They must show
how the felony was disposed and when, and contain the signature of the judge.
12. Service Agreement- If no mechanical repair facility is on-site, a Service
Agreement with an operational repair garage within a reasonable distance from the
licensee location must be provided and maintained during the licensing period. Any
change in the designation facility must be reported to the Commission within
30 days of the change.
13. New Vehicle Dealer- A letter of acknowledgement sent from the
motor vehicle manufacturer(s) of the awarding of the Franchise
agreement(s) must be provided. Dealership name must be the same as the entity/
name to whom the Franchise was granted. A sworn statement containing the labor rate to
be charged retail customers and the labor rate to be charged to the manufacturer(s) for
warranty repairs must be provided. Thereafter, any change in the labor rated must be
reported in writing to the Commission within 10 days after the change. Labor rate form
provided.
14. Re-inspection Fees- A four hundred dollar ($400.00) fee will be assessed per reinspection of a applicant when re-inspection is necessitated by an action or inaction of the
applicant. The fee must be paid before the re-inspection is ordered.
15. Dealer License FeesFranchise vehicle dealer license fees-----------------$400.00 per line make
Used vehicle dealer license fees----------------$400.00
Franchise motorcycle dealer license fees-----------$400.00 per line make
Name change fees----------------------------------$400.00
Salesperson license fees--------------------------$35.00
Applicable licensing fees are payable by cash, check, money order, or certified check. Checks
are to be payable to Tennessee Motor Vehicle Commission. NOTE: Cash must be paid by
the applicant to the Cashier’s Office of the Department of Commerce and Insurance at the
Davy Crockett Tower, Eleventh Floor, 500 James Robertson Pkwy, Nashville, TN
37243-1153.
DO NOT MAIL CASH. Field Investigators will NOT accept any payments.
After all proper documentation of the above requirements has been submitted, there will be an
on-site inspection of the facility. After inspection of facility, a final review of application
documents and facility findings will be conducted. If approved a dealer license will be issued.
The expected delivery time is 14 days.
Please provide an email address where indicated on page 4 of the application.
Reference information regarding laws and rules at the following website:
http://www.tn.gov/regboards/mvc
Also under Quick Links at the above address all forms and FAQ’s and etc. may be found.
Approving Process Timeline for Dealer Applications
After having satisfied and completed all of the requirements on page four of the dealer
application, you must submit your completed application along with your application fee to this
office either by mail or in person to (Davy Crockett Tower 500 James Robertson Parkway 11th
floor cashiers office). Application review only occurs after submission to cashiers office. After
MVC receipt of the application you will be notified within two weeks by mail. You will receive a
correction letter if there’s something wrong or missing. Make sure you fix everything listed in
the letter and mail requested information back to the State. After all the dealer application
requirements are met you will receive a cell phone call from an Investigator to schedule an
appointment for inspection of your facility, normally within five days. Once the State
investigator completes their inspection of your facility they send the completed inspection form
to this office for review. Final review of your dealer application will occur within three working
days. Upon approval you will receive your license in the mail within ten working days. The
License is printed at a remote site and mailed from a state mailing facility. Our staff never sees
the license and cannot effect the license arrival date.
Five Major Reasons Applications Are Held Up
1.Dealer must sign the bond and it must be the original bond.
2.The expiry date on the dealer bond must be two years from the last day of the month the
application is submitted. If you submit your application on June 18, 2014, the expiry date on
the bond should read June 30, 2016.
3.Financial statement to include a compilation letter must be done by a CPA and if the CPA if
not licensed in Tennessee they must send a copy of their license.
4.Application, you must answer every question on all five pages.
5.Pictures, you must send pictures of dealer facilities including outside of entire building, the
lot, sign, posted hours, posted phone #, office and bathroom.
Motor Vehicle Commission Rules may be found at:
http://www.tennessee.gov/sos/rules/0960/0960.htm
Please review contents, for compliance.
STATE OF TENNESSEE
TENNESSEE MOTOR VEHICLE COMMISSION
500 JAMES ROBERTSON PARKWAY – 5th FLOOR
NASHVILLE, TENNESSEE 37243-1153
PHONE 615-741-2711
FAX NO. 615-741-0651
File No.______________________
Xact No.______________________
Action: ______________________
For Office Use Only
Check type(s) of Application:
NEW RECREATIONAL VEHICLES
RELOCATION APPLICATION
(Includes right to sell used R.V.’s at same location)
FRANCHISE MOTOR VEHICLE DEALER
USED MOTOR VEHICLE DEALER
(Includes right to sell used cars and trucks at same location)
FRANCHISE MOTORCYCLE DEALER
(Includes right to sell used motorcycles at same location)
ADDITIONAL LINE-MAKE
Application is hereby made for motor vehicle dealer license to engage in the business of selling motor vehicles
in the state of Tennessee in compliance with the provisions of Tennessee Code Annotated 55-17, et seq.
Print in black ink or type requested information.
1. Firm Name ______________________________________________________(_____________________)
(Full name of Entity to be licensed)(Use line below, if necessary)
(Area Code & Phone No.)
_________________________________________________________________ (_____________________)
(Fax No. w/Area Code)
2. (a) Location Address_____________________________________________________________________
(Street)
________________________________________________________________________________________
(City)
(County)
(Zip)
(b) Mailing Address (if different, the mailing address must be in the same county)
________________________________________________________________________________________
(P. O. Box or Street)
________________________________________________________________________________________
(City)
(County)
(Zip)
3. If a Franchise Dealer or New Recreational Vehicle Dealer, each line-make is required to be licensed. List
each line-make and names of manufacturers/distributors with whom you have a bona fide contract, sales and
service agreement, or franchise for the retail sale of each of the makes of vehicles. Attach a copy of the
manufacturer’s franchise letter awarding each line-make.
Line-make
Name of
Manufacturer/Distributor
1. __________________________________________ _________________________________________
2. __________________________________________ _________________________________________
(Line-make continued)
3. __________________________________________ ________________________________________
4. __________________________________________ ________________________________________
5. __________________________________________
_______________________________________
4. Physical description of facility must exceed minimum requirements as per attached instruction sheet.
Type of Building: _________________(ex. wood, brick, block, etc.); Gross Building Area:______________
(Square Feet); Land Size ___________ (Square Feet or Acreage)
5. Is the sale of motor vehicles or recreational vehicles the principal business at the location named in this
application? _________________
(Yes or No)
6. Are you engaged in any other business which is conducted from this establishment? __________________
(Yes or No)
If yes, describe: _________________________________________________________________________
7. Have any of the individuals, partners, or corporate officers named ever been convicted of a felony?_______
(Yes or No)
8. Type of business (circle one); Proprietorship Partnership
Corporation
LLC
LLP
(a) If proprietorship give name, residential address and cell phone number of owner: _______________
________________________________________________________________________________________
________________________________________________________________________________________
(b) If partnership, give name and residential address and cell phone of each partner and designate
managing partner or partners:
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
(c) If corporation:
(1) Domestic (Tennessee) - provide copy of Charter and any amendments:
(2) Foreign (out-of-state) corporations - provide copy of a Certificate of Authority stating agent for
service of process.
(3) List name, address, and title of officers, directors, and any/all persons or entities owning more than
five percent (5%) of outstanding shares of stock issued by the corporation on the “Stockholders
Information Update” form. Form supplied with this application packet.
9. Have you ever filed for bankruptcy? If so, when and under what name:
______________________________________________________________________
______________________________________________________________________
10. All facilities must be manned and open during reasonable business hours. State
what days per week and hours per day this business will be open.
______________________________________________________________________
______________________________________________________________________
11. Upon facility licensure, it is required that all dealers must license salespersons
through this Commission before they can engage in the business of selling motor
vehicles or recreational vehicles. You are required to return all salespersons’ license
and identification cards once the salespersons employment is terminated.
Salespersons’ license is non-transferable. Number of salespersons expected to be
employed at start-up. ______________________________
12. Do you have on-site facilities to repair and replace functional and non-functional
parts of a motor vehicle or recreational vehicles? _______________
(Yes or No)
13. If no, attach a copy of your executed Service Agreement. Service Agreement is
included with this application packet.
14. Has any application for a motor vehicle dealers or recreational vehicles’ license ever
been denied, revoked or suspended in this or any other state?________________
(Yes or No)
If yes, explain below what precipitated the decision and attach any/all relevant
documents.
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
15. Proof of liability insurance with a minimum coverage of $300,000 must be provided
by a Certificate of Insurance. This insurance must remain in force for as long as the
licensee is licensed. The Tennessee Motor Vehicle Commission must be listed as
the certificate holder.
16. The prospective licensee must furnish a current financial statement with this
application. See memorandum in packet for instruction.
I hereby certify that the statements in, or attached to this application are true and
correct to the best of my knowledge and belief; that the members of this
organization are familiar with the provisions of the law under which this
application is made, and that I, as proprietor, partner, or officer of the corporation,
have authority to make the statements contained here.
I further attest that I will comply with each of the following requirements pursuant
to Tenn. Code Ann.
§ 55-17-11(h):
A) I shall maintain the surety bond required by subsections (d) and (g), as
applicable, in force and effect during all times that the license is active; and
B) I shall notify the commission upon a change in ownership or location of
the dealership as required by § 55-17-113.
FAILURE TO MAINTAIN A SURETY BOND AS REQUIRED BY T.C.A. § 55-17-111,
OR NOTIFY THE MOTOR VEHICLE COMMISSION OF A CHANGE IN THE
OWNERSHIP OR LOCATION OR THE DEALERSHIP AS REQUIRED BY T.C.A. § 5517-113, MAY RESULT IN THE ASSESSMENT OF A CIVIL PENALTY AND/OR
SUSPENSION OR REVOCATION OF THE MOTOR VEHICLE DEALER LICENSE.
Date: ________________________________
__________________________________
(Authorized Signature)
Signed:
Title:_________________________________
__________________________________
(Print or Type)
Authorized Signature)
(Print
Applicant’s E-mail
Address_______________________________________________________________
STATE OF _____________________________________
COUNTY OF ___________________________________
Subscribed and sworn to before me this ______________ day of
______________________________,20__.
(SEAL)
_________________________________ My commission expires: ________________
(Notary Public)
Mail application, attachments, and fee to the TENNESSEE MOTOR VEHICLE
COMMISSION, 500 JAMES ROBERTSON PARKWAY, FIFTH FLOOR, NASHVILLE,
TENNESSEE 37243-1153.
CHECK LIST OF ATTACHMENTS TO APPLICATION:
Application fee $400 per Line-Make
Financial statement Prepared by CPA
2 Year Surety Bond (Original)
Copy of Service Agreement
Certificate of Liability Insurance
Copy of State Sales Tax
Certificate of Registration
Copy (ies) of Financial Disclosure
Copy of County Business Tax
License
Copy of City Business Tax License
If applicable
Zoning Letter
Pictures of entire outdoor display area, sign, restroom, building & office, phone #, hours &
days of operation.
IF CORP, LLC LLP NEXT 2 ITEMS APPLY:
Copy of Corporate Charter, if applicable
Copy of Stockholders Update
IF FRANCHISE DEALER NEXT 2 ITEMS APPLY:
Copy of Franchise Letter(s) or Agreements
Copy of Labor Rate Form (Franchise dealer)
IN-0592 (Rev. 2/14)
RDA 2225