Are you passionate about the open road and the freedom of travel? Do you dream of turning that passion into a thriving business? If you’re considering becoming a travel trailer dealer, you’re embarking on an exciting journey. The demand for travel trailers is booming as more and more people seek adventure and comfortable exploration. However, before you open your dealership doors, understanding the licensing and operational requirements is crucial. This guide will walk you through the essential steps to become a licensed and successful travel trailer dealer, ensuring you’re well-prepared for every mile of the road ahead.
Who Needs a Travel Trailer Dealer License?
Navigating the specifics of licensing can seem complex, but it’s vital to operate legally and build a reputable business. In essence, if you plan to regularly buy, sell, or deal in travel trailers, park trailers, manufactured homes, and non-motorized mobile homes, a dealer license is a must.
Specifically, you need a dealer license if you intend to:
- Sell new or used travel trailers, park trailers, manufactured homes, or non-motorized mobile homes at wholesale or retail.
- Sell more than 4 of these types of trailers or homes registered in your name within a 12-month period.
- Buy and sell these vehicles with the primary goal of making a profit.
- Sell any of these vehicles that are not registered in your name.
Operating without the correct license can lead to legal issues and hinder your business growth. Obtaining your travel trailer dealer license is the first step towards establishing a legitimate and trustworthy dealership.
How to Become a Travel Trailer Dealer: The Application Process
The path to becoming a licensed travel trailer dealer involves several key steps, from ensuring your business site meets specific criteria to completing the necessary paperwork. While the license itself is issued by the relevant authority, the application process is often managed through a business licensing service. Think of your dealer license as an endorsement to your general business license, specifically allowing you to operate as a vehicle dealer.
Here’s a breakdown of the application process:
1. Meet the Business Site Requirements
Your physical dealership location plays a critical role in the licensing process. It’s not just about having a place to park trailers; your business site needs to meet specific standards to ensure professional and legal operation.
Laws and Rules Compliance
First and foremost, your business location must comply with all local laws and regulations. This includes:
- Building codes: Ensure your buildings are up to code and safe for business operations.
- Zoning laws: Verify that your chosen location is zoned for commercial vehicle sales.
- Land-use ordinances: Adhere to all local ordinances related to land use and business operations.
It’s essential to contact your city or county planning department to confirm compliance with all applicable regulations.
Building Specifications
Your dealership must operate from a commercial property that includes an enclosed building. This physical building serves as your office and operational hub.
You’ll also need to install a permanent exterior sign clearly displaying your business name and the type of business you operate, such as “Travel Trailer Sales” or “RV Dealers“. This sign should be easily visible to the public.
Phone System
Effective communication is key to running a successful dealership. You are required to have an operating phone number listed in directory assistance. While a mobile number is acceptable, it must be officially listed as your business contact.
Business Hours
Consistent business hours are important for customer accessibility. You must be open to the public for business at least five days a week, from 10 a.m. to 4 p.m. Of course, many successful Travel Trailer Dealers choose to extend these hours and open on additional days to better serve their customers.
Records Management
Maintaining accurate and organized records is crucial for compliance and efficient business management. You need a designated area within your enclosed building for storing books, records, and files related to your travel trailer dealer operations. If you share a business location with another vehicle dealer, it’s imperative that your records, office facilities, and inventory are physically separated and clearly identified to avoid any confusion or compliance issues.
2. Complete the Required Documents
Once your business site is set up to meet the requirements, the next step is to gather and complete the necessary documents for your travel trailer dealer license application.
Application Forms
The core of your application is the set of required forms. These forms gather essential information about your business and ensure you meet all legal obligations. You’ll need to complete the official application forms provided by the licensing authority.
$30,000 Bond
A significant part of the application process is securing a Vehicle, Vessel Dealer Business Bond in the amount of $30,000. This bond serves as a financial guarantee, protecting your customers and the state.
- You can obtain this bond through an insurance or bonding company.
- The principal name on the bond form must exactly match the business owner’s name and the business firm name.
- Both you and an attorney-in-fact from the bonding company must sign the bond form.
This bond demonstrates your financial responsibility and commitment to ethical business practices as a travel trailer dealer.
Financial Statement
To further demonstrate financial stability, you must include a Financial/Source of Funds Statement. The requirements for this statement depend on your business structure:
- Sole Proprietorship or Partnership: Each individual proprietor or partner must submit a separate financial statement.
- Corporation, LLC, or LLP: These business entities submit one financial statement that lists the assets and liabilities of the business itself.
This financial statement provides assurance of your business’s financial health and ability to operate as a responsible travel trailer dealer.
3. Review the Checklist
Before submitting your application, utilize the official Dealer Checklist. This checklist is an invaluable tool to ensure you have completed all steps and included all necessary documents. Carefully reviewing and using the checklist can prevent delays and ensure a smoother application process.
4. Submit Your Application
The final step is to submit your completed application and pay the required fees. There are typically two methods for submitting your application:
Apply Online
Applying online is often the faster and more efficient method. You can apply and pay the manufactured home and travel trailer dealer license and plate fees through the Department of Revenue’s website. Online applications generally expedite the processing time, getting you closer to opening your travel trailer dealer business sooner.
Apply by Mail
Alternatively, you can mail your application forms along with a check or money order for the fees. Make the check or money order payable to the Department of Revenue and mail it to the specified address for the Business Licensing Service.
After You Get Your License
Congratulations! Receiving your travel trailer dealer license is a major milestone. However, it’s important to remember that you cannot legally conduct business until you have your license in hand. Once licensed, there are several crucial steps to take to ensure ongoing compliance and smooth operations.
- Post Your License: Display your dealer license prominently at each of your business locations. This ensures transparency and confirms your legal operating status to customers and authorities.
- Create an E-Permits Account: Set up an E-permits account to efficiently issue and manage temporary permits. This is essential for allowing customers to legally operate vehicles they purchase before permanent registration is finalized.
- Sign Up for Vehicle Registration Search: Register to access vehicle registration information. This service is vital for managing inventory, verifying vehicle history, and ensuring smooth transactions.
These post-licensing steps are crucial for the day-to-day operations of your travel trailer dealer business and maintaining compliance.
Temporary Sub-Agency Permits
For specific situations like participating in a car show or other short-term events, you may need a temporary sub-agency permit. To obtain this, you’ll need to complete a Dealer Temporary Sub-Agency License Application form and submit it along with the temporary sub-agency fee. These permits allow you to conduct limited dealer activities at events outside your primary business location.
Keeping Your License Updated: Address Changes
It’s critical to keep your travel trailer dealer license information current. If your business moves or your address changes, promptly contact the licensing authority to update your license. Maintaining accurate contact information ensures you receive important updates and remain compliant.
Becoming a travel trailer dealer is a rewarding venture. By understanding and diligently following these licensing steps, you can lay a solid foundation for a successful and legally compliant business, ready to help customers find their perfect travel trailer and embark on unforgettable adventures.
