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When does a person need a motor vehicle dealer license?
Posted: 09.30.2011 at 3:32 PM
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Many of our Facebook fans wanted to know about motor vehicle licensing and how many vehicles can a person buy, own, and sell before they need a motor vehicle dealer license. 

In Iowa, there isn't a limit to how many cars a person can buy or own, but the Iowa code has strict regulations for selling cars.

KTVO talked to Andrew Lewis who works in the Iowa Department of Transportation's Vehicle Services Office.

He said that if a person sells more than six motor vehicles at retail price within 12 months, then they are presumed to be engaged in the business of selling cars and need a dealer's license.

Also, he said if there is evidence that a person is buying cars for the sole purpose of reselling them, they also would need a dealer's license.

In Iowa, the penalty for selling cars without a dealer's license is a simple misdemeanor and they could be fined anywhere from $250 to $1,500 or serve an imprisonment up to 30 days.

For more information, you can view the Iowa Code, Chapter 322.

http://search.legis.state.ia.us/nxt/gateway.dll/ic?f=templates&fn=default.htm

In Missouri, Ted Farnen from the Missouri Department of Revenue said in an email that if a person or business sells six or more vehicles a year, then the dealer laws apply to them. He said that interested parties can refer to sections 301.550 to 301.573  of the Missouri State law for more information.

http://www.moga.mo.gov/homestatsearch.asp

Also, if you'd like to know what it takes to get a car dealer's license, here are the sites for Iowa and Missouri.

Iowa: http://www.iowadot.gov/mvd/ovs/dealer.htm

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