If you want to operate your dealership out of more than one location, each additional location beyond your main established place of business is considered a branch location. Each branch location requires a separate application to DMV and must be independently approved. You can’t just open a second lot and start selling cars there — each location must be licensed.
Branch locations must meet the same physical requirements as your main location: permanent structure, desk, chair, phone, internet, file storage, signage (unless wholesale-only), and proper zoning. Each branch must have its own bond — or your existing bond must be endorsed to cover the branch, depending on your surety company’s requirements and DMV’s policies. Each branch must be inspected by DMV before it can begin operations.
The application process for a branch location is similar to the original license application but is submitted as an addendum to your existing license. You’ll provide the same types of documentation — lease or ownership proof, zoning verification, bond coverage confirmation, and photos of the location. There’s an application fee, and the approval process takes time, so plan ahead. Don’t sign a lease for a second location and tell the landlord you’ll be operational next week — it can take several weeks or longer to get branch approval.
Records management is important with branches. You need to maintain records at each location for the transactions conducted at that location, or have a centralized record-keeping system that can produce records for any location on demand. When DMV audits a branch, they’ll expect to see (or be able to access) all records for transactions conducted at that branch.
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❌ Common Mistake A successful dealer opens a second lot to display additional inventory and begins selling vehicles from it without obtaining branch approval. DMV discovers the unauthorized location during a routine audit and issues a citation for operating an unlicensed dealer location — a serious violation that can result in license suspension for the dealer’s entire operation, including the main location. |