The New York laws suggested that one needs a permit to trade by public auction. However, this will change soon. The authorities decided to repel requirements for the New York auction license. So, you no longer need it starting June 15, 2022.
However, this mostly refers to art and other objects. If you want to sell secondhand automobiles, a permit is mandatory.
Now let’s start with a document that is still in place before June 15. It requires presenting several documents:
In addition to this, the applicant is to pay fingerprints and a processing fee. The fee for the permit itself varies on the period when you submit a form. This may cost from $100 to $500.
It’s quite easy to submit the form. First, you register an account on the NYC website. Just review the requirements and submit them online. This field is regulated by the NY Consumer and Worker Protection Department. There is also a chance to file it in person once you scheduled an appointment.
Note: This works until June 15. Starting from this day, you no longer need a license.
If you are dealing with used car auctions, you need a permit. Trading up to 5 cars a year is ok. This refers to an automobile owned by you. It has to be only for personal or business purposes. If there are more, it is necessary to apply for a secondhand auto permit.
The NY consumer department offers a detailed checklist. It presents guidelines on how to sell used vehicles. For example, it indicates that you must clearly label the used automobile. There are clear requirements for price signs as well. The authorities call on all dealers to read it thoroughly to avoid any violations.
Before applying, make sure that you have all the necessary papers. The local Department of Motor Vehicles provides a full list. You must prepare:
Firstly, let’s look into the points presented above. The department warns against applying if you do not have these papers. It says that you first need to record the tax ID and facility application.
Compensation insurance is for those dealers who have employees. If you do not have one, please indicate it in your form.
The amount of surety bond depends on the numbers you sell. It has to stand at $20,000 for 50 or fewer cars a year. If the number exceeds 50, the insurance amount is $100,000. Overall, application and business fees are $478. It is payable to the commissioner of motor vehicles.
Once you submitted all papers, a clerk will contact you. Later, the office in Albany reviews them and sends them to a regional office. This is the time when you may face an on-site inspection.
The inspector checks if you have a dealer starter kit and signs. The DMV website provides a list of vendors selling the kit. It includes:
He will also check the permanently mounted sign. It has to meet certain parameters.
Note: You may learn the requirements for other US states as well, for example, you may check the Missouri auction license.