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4 Steps - How To Open A Car Dealership In Alaska

By Crystal Ignatowski on Jan 3, 2017 1:34:00 PM in

Auto Dealer Bonds

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To register as a dealership in Alaska, you will need to get an Alaska Dealer License. The Alaska Department of Administration handles all licenses.

How to get an Alaska Dealer License

 

The Process


      1. Purchase an Alaska Motor Vehicle Dealer Bond

      2. Complete Alaska Motor Vehicle Dealer License Application

      3. Include any other necessary requirements

      4. Pay registration fee and submit paperwork



Step #1: Purchase Alaska Motor Vehicle Dealer Bond

 

An Alaska motor vehicle dealer bond (also known as an auto dealer bond or car dealer bond) protects your customers and builds trust in your business practices and reputation. Being bonded helps your customers trust that you’ll look out for their best interests as they shop and potentially purchase a vehicle. 


Get A Free Alaska Dealer Bond Quote

Not sure how to get an Alaska Auto Dealer Bond? Use this interactive tool to help you out.

 

For those dealerships selling just motor vehicles, a bond in the amount of $50,000 is required. For those selling just motorcycles, a bond in the amount of $25,000 is required.

Since July 2002, boat dealers are no longer required to be bonded.

 

Step #2: File Alaska Motor Vehicle Dealer License Application

Request an Alaska Dealer License Appliction and information packet from the address below. Be sure to include a name and address for your packet to be mailed to.

State of Alaska
Division of Motor Vehicles
Attn: Dealer/Fleet
1300 W. Benson Blvd. Ste. 300
Anchorage, AK 99503
Phone: (907) 269-3755

Once you receive the application, complete and submit it, along with your Alaska Motor Vehicle Dealer Bond and the other requirements below, to your local Department of Motor Vehicles.

Note that the signature of the person signing the application must be notarized. Allow up to six weeks for processing of a new dealership or buyer’s agent certification.

 

 

Step #3: Include Other Requirements

Some locations in Alaska might require a business license or other local or state license to legally operate a motor vehicle dealer business. Establishing a Business in Alaska  has more information on operating a business in Alaska.

 

Generally, proof of insurance and an approval of the business site is also required. For a full list of requirements for starting a business, reference Alaska Statutes: Title 8, Chapter 66

 

Step #4: Pay Licensing Fees

There is a $50 registration fee to get your submit your Alaska Dealer License Application.

 

Alaska Dealer License - Common Questions

 

Q: What do you I after I’ve been certified?

A: Once you’ve been certified as an Alaska motor vehicle dealer, you must clearly display your certification in your business location. Your certification is only valid for your particular business that is listed on the certification. No other businesses or locations can be valid under your certification unless they are listed as so.

 

Q: What do I do if I move?

A: If you move your business location, you need to notify your local Department of Motor Vehicles and provide them with a rider for the bond.

A bond rider is a change or amendment to an original bond and extends bond coverage so your clients and business are still protected. If you need to make any changes to your Alaska motor vehicle dealer bond, like as in a change in business location, the rider needs to show the proper change. Other changes requiring a bond rider include:

  • Bond term
  • Change in business name
  • Change in business type
  • Change in owners
  • Increase or decrease of bond amount

      

Q: What happens if I stop doing business?

A: If for some reason you decide to stop selling motor vehicles or working as a buyer’s agent, the DMV requires you to return your registration certificate, plus any dealer plates and temporary permits.

 

Q: How do I renew my license?

A: Once certified, you will automatically receive a renewal letter, along with all the necessary enclosures and documents, to renew your certification and license. Licenses are valid for 2 years in Alaska.

Do you know when your motor vehicle dealer license expires? Check out this awesome infographic.

 


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Related Links:

How Much Does An Auto Dealer Surety Bond Cost?

New Motor Vehicle Dealer Bond Updates