Applying for a dealer license can be a lengthy process with many specific requirements. It’s important to pay attention to the fine print to be sure that you get it right on the first try and can open your doors to customers. If you’re a new or experienced dealer looking to open a business in Mississippi, we’ve put together a guide to help you. The following is a list of all the required steps within the dealer license application process to help you get through it smoothly and quickly. 

7 Steps to Getting Your Mississippi Dealer License 

1. Select the Right Type of Dealer License for Your Business

Mississippi differentiates three types of dealer licenses, and the first step in the process is to select the right one for your business needs. You can choose from¹: 

• New vehicle dealer
• Used vehicle dealer 
• Wholesale dealer 

Selecting the right type of license is a crucial first step, as it determines the requirements for the remainder of the application. 

2. Get a Permanent Business Location

Before you even submit your application, you will need to be ready with a business location that you have rented or purchased. This location has to meet some requirements and will be subject to investigation later in the process to ensure it adheres to all relevant regulations. 

Your location must include a sign that stipulates the owner’s name, what you sell (motor vehicles), and a phone number, all visible from the front lot. The property also needs to be separate from any other business and cannot share a location.² The location must also have an office space as well as a lot to display vehicles. 

3. Attend the Dealer Seminar

This is not required in every state, but Mississippi requires both used and wholesale dealers to attend and pass an educational seminar hosted by the Mississippi Independent Auto Dealers Association (MIADA). You will have to include proof of passing this session with your application materials. 

4. Secure a Franchise Agreement 

If you are a new dealer, you must have a franchise agreement with every manufacturer that you sell. These agreements will also need to be included with your application materials. 

5. Get Liability Insurance and a Surety Bond

Both used and wholesale dealers must prove that they have secured vehicle liability insurance. For the auto dealer bond, you will need a different amount depending on the type of license you are applying for: 

• New vehicle dealers with one location: $25,000 
• New vehicle dealers with multiple locations: $100,000
• Used and wholesale dealers: $15,000

You won’t be required to pay the full amount; depending on your personal finances, you’ll get a rate between 0.75% and 5% and pay a portion of the full amount, known as the bond premium. 

6. Gather Additional Paperwork

In addition to the above, you will also need an Employer Identification Number (EIN) from the IRS, a business registration from the Secretary of State, and a sales tax number from the state’s Department of Revenue. 

7. Get Your Application and Fees Together 

Anyone applying for a new dealer license can apply online and include the supporting documents as attachments. For those seeking wholesaler or used licenses, a mail-in application is required. You can send your application and supporting materials to: 

Mississippi Department of Revenue
Motor Vehicle Licensing Bureau 
P.O. Box 1140 
Jackson, MS 39215

Along with your application, you will have to pay the fees:

• $100 licensing fee that applies to all types 
• $10 salesperson application (new dealers) 
• $43.75 for one dealer tag (used and wholesale)

Note that in Mississippi, you are required to renew your dealer license annually. 

This is not intended as legal advice. If you have questions about dealer licensing requirements, please seek the assistance of legal counsel.

Find Used Car Inventory in Mississippi With ACV Auctions 

Once you are licensed and ready to sell vehicles, you’ll need to fill your lot with high-quality used inventory. To make this process efficient, work with us at ACV Auctions. We have a full online auctioning platform, filled with used vehicles from Mississippi and across the country that have been inspected by our team. Each vehicle comes with a detailed report so you can be sure of what you bid on. Reach out to us after obtaining your dealer license to start filling your lot and driving sales. 

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Sources

1. Lance Surety Bonds. (2023). “Mississippi Dealer License: The Full Guide.” Risk Strategies: Lance Surety Bonds. Retrieved November 7, 2023. https://www.suretybonds.org/blog/mississippi-dealer-license 
2. JW Surety Bonds. “Mississippi Auto Dealer License Guide.” Risk Strategies: JW Surety Bonds. Retrieved November 7, 2023. https://www.jwsuretybonds.com/states/mississippi/auto-dealer-license