Most La Crosse County business owners need permits from their state before they can operate a business. To get a motor vehicle business license fairly quickly and easily is really dependent on you. If you are not certain of which of the many permits are needed to setup a car auction business (and there are several types of permit to choose from) then you risk wandering into a murky application process. To avoid unnecessary delays, examine the types of license offered, relevant to your business operation and see how you may qualify.

Wholesale Auction Dealer License

This type of license allows you, the licensed dealer, to sell your vehicles only to other licensed motor vehicle dealers. Be mindful that vehicles belonging to a salvage pool will not qualify you for this type of license.

Wholesale Dealer License

If your business involves vehicles from the salvage pool to be auctioned off to licensed dealers, then this is the license for you, and not the wholesale dealer license, above.

Retail Motor Vehicle Dealer License (or Salesperson License)

If your business involves auction activities for the express purpose of selling to the general public and not to licensed dealers, then this is the license for you. Note that your vehicles should come from one dealership, exclusively.

No License Needed

No permit is needed if you sell repossessed vehicles from finance companies to the general public.

Requirements

To qualify you must commit to the following terms:

1.  Have an established place of business that complies with all local zoning and permit regulations.
   

2.  Open a surety bond account of $25,000 with an insurance company.  Insurance companies that are accepting bond applications include Capitol Indemnity Corporation, Aegis Security Insurance Company, and Auto Owners Insurance Company.
   

3.  Provide proof of lease for the business real estate, unless the license applicant owns the estate.
   

4.  Pay fees of $100 to the Registration Fee Trust for a two-year wholesale auction dealer license, if applicable.
   

5.  Pay a nominal fee for a Salvage Buyer Identification Card (BID), if applicable, which allows you to bid at motor vehicle salvage pools. A sales tax seller permit will also be required for the Salvage dealer.
   

Apply By Mail

You must complete several forms; and, if you are applying for a wholesale auction dealer license you will be asked to fill out additional documentation. Many of these documents require your signature or the signature of authorities and witnesses. Therefore, you must apply by mail to your state’s Department of Transportation.

Online Application

Online applications are possible for all other licenses previously listed.