Ohio Dealer License Frequent Questions

Secondary FAQ

1. Can I sell cars online with an Ohio dealer license?

Yes, you can sell cars online with an Ohio dealer license. However, Ohio law requires a dealers sales activity to take place only at the licensed location. So if you are selling vehicles online, all transaction documents must be completed and customer must pay for the vehicle before you can ship or deliver the vehicle to a customer. We recomend using a dealer management software program that will allow you to electronically submit all the Ohio dealer documents to the customer so they may sign them remotely and assist them with completing the loan.

2. Can I take a vehicle to a customer's home to show them the vehicle?

No, this is a violation of Ohio state law. You must complete the sale and have the loan approved first, then you are allowed to deliver the purchased vehicle to the customer's home. You cannot show your vehicles at non licensed locations.

3. How do I sell vehicles to customers that live outside the state of Ohio?

You can use a dealer management software program that will submit all the Ohio dealer documents to the buyer to digitally sign and get their loan approved first. Then you can ship or deliver the vehicle to the customer that lives in another state. This holds true for vehicle exports to other countries as well. Always make sure all the paperwork is complete and the vehicle is paid for before shipping or delivering a vehicle to a customer.

4. Can I sell cars from an auction with an Ohio dealer license?

No you cannot sell cars from an auction with an Ohio dealer license. State law and the dealer auctions strictly prohibit this. Most dealer auctions may allow you to register a visitor that you are bringing on the sale date. The visitor can point to a car they want and then you can purchase the car. You would then be required to transport the car to your license Ohio dealership location where you would then sell the car to the customer and complete the deal paperwork. If you sold a car at a dealer auction you would violate state law.

5. Can I buy cars at dealer-only auctions without a dealer license?

No, you can never buy cars at a dealer-only auction without a dealer license. The sign on the front door of every dealer auction clearly states "LICENSED DEALERS ONLY". Your Ohio dealer license will allow you to purchase vehicles from every dealer-only auction in the country.

6. Can I get an Ohio dealer license if I have a criminal record?

Yes, but it depends entirely on the offense and when the offense was committed. If you have a criminal record be sure to view the BMV's list of disqualifying offenses. You can view the list of disqualifying offenses here.

7. Can I get a dealer license if I have bad credit?

Yes, absolutely you can get a dealer license in Ohio if you have bad credit. We strongly encourage you to obtain your bond no matter your credit score and make monthly payments if you need. Your profits with an Ohio dealer license should be much more than your monthly bond payments, regardless of your credit score. Bond payments are typically only a fraction of your monthly dealer income. Based on our experience, individuals with poor credit who obtain a dealer license often see an improvement in their credit score within a year. This is typically caused by the increase in income from operating their dealership, along with the monthly payments made on their dealer bond.

8. I already have an LLC for a business I currently own, can I just use it for my Ohio dealer license.

If you already have an LLC for a business you currently own, you may be able to use it for your Ohio dealer license. If the Ohio Secretary of State allows the LLC to be used for your dealer license, at minimum, you will need to amend your LLC stating that you are now selling motor vehicles in addition to the previous business operations. You can contact the Ohio Secretary of State regarding this question.

9. Can an out-of-state resident get an Ohio dealer license?

Yes, and out-of-state-resident can get an Ohio dealer license. However, your location for you dealership must obviously be located in the state of Ohio.

10. How often does an Ohio dealer license need to be renewed? Check

All Ohio dealer licenses expire on March 31 every two years. Ohio does not have a dealer continuing education requirement so you do not have to take any more training to renew your license.

11. What is the difference between a used dealer and new dealer license in Ohio?

A used dealer is only allowed to sell used motor vehicles. A new dealer, such as a Chevrolet, Toyota, Honda, or Ford dealership holds a new motor vehicle dealer license that allows them to sell new and used motor vehicles. Only dealers licensed as new motor vehicle dealers are allowed to sell and advertises new motor vehicles.

12. What insurance do I need for an Ohio dealership?

You do not need to provide proof of insurance before you apply for your Ohio dealer license. However, the State of Ohio requires all vehicles being driving on any roadway to be insured. If you are driving vehicles from the dealer auction to your dealership or if you are allowing customers to take a test drive, then you must have the proper insurance on the vehicles.

13. What zoning requirements apply to an Ohio used car dealership?

The zoning requirements are determined by the city or county the dealership is located in. If you are in a city your location must be zoned based on your city zoning requirements. If you are not located in a city but instead located in a county your county will determine if your location is zoned to have a dealer license.

14. How can I find out if my location is zoned for a dealer license.

You can find out if your location is zoned for a dealer license by contacting your city hall and ask for the office that handles zoning. Let them know the address and they will let you know whether or not you can have a dealer license at that location. If you are not in a city but in a county, you can contact your county court house to find your local zoning laws. Some rural counties in Ohio may not have any zoning laws. If that is the case, you must still meet all other state dealer licensing requirements.

15. Can I have multiple owners on one Ohio dealer license?

Yes you can have multiple owners on one Ohio dealer license. Each owner must be fingerprinted before the license is issued.

17. Can I operate a dealership from a leased property

Yes you can operate a dealership from a leased property. The state of Ohio does not require you own your dealership property but you must have full and legal access to the property.

18. How can I enroll in the Ohio dealer pre-license course.

You can enroll in the Ohio dealer pre-license course here.

Call us at 800-369-2467, email info@ohiodealer.com or complete our Contact Us form. We would love to help you obtain your Ohio Used Dealer License.

Good Luck in Obtaining Your Ohio Dealer License!

We are here to help you start your Ohio Used Motor Vehicle Dealership!

Delus Johnson-Lead Instructor
Automobile Dealer Training Association

Ohio Dealer License Instructor