Iowa Auction License

For selling even 12 cars as a person in the field, residents should have special permission known as Iowa Auction License. If you fail to secure one, they will charge penalties for illegal activity. This is why you are to make sure you have it.

For this, you are to turn to the IA Department of Transportation (DOT). This is the institution that regulates procedures connected to this. Each state and even each county in the U.S has its own regulations and requirements.

Types of Iowa Auction License

The certificates for new and used cars are the car, motor home, and towable recreational vehicle dealers. Others are truck, motorcycle, low-speed auto, and motorized bicycle dealers.

The DOT issues them to auto recyclers, rebuilders, and used parts dealers, manufacturers, distributors, and new vehicle wholesalers. They also issue them to special equipment wholesalers and mobile home retailers.

What Is The Application Process For Iowa Auction License?

Register the Business

Though there are a number of types, the application process is the same for all. So the first thing that you need to do is to register your business. You are to go to the Department of Revenue. After that, apply for receiving permission to operate and work.

Get An EIN

To get this, you first need to have an Employer Identification Number or EIN. If you do not have it, apply for it online. Go by the link and read what you have to do for obtaining that.

After you the EIN, you are ready for dealing with the permission. There is good news for you. You are able to do it through the online registration system. Open the page and read about the necessary steps to take. You can do it in person at DOT too.

Location

After you receive the latter-mentioned, you are to secure a place for your company. According to the type of certificate, the place can conform to different commands. The first requirement is the need to match the real conditions with the zoning provisions about the office dictated in the document.

You are to have an office that should have a telephone in the name of the business. It must answer the phone calls and have 32 working hours at the end of the week.

The location is to have enough space and a facility for repairing motorcycles. An important point is that the reconditioning institution has to be separate from that of the display room.

Besides this, the repairing institution is to be 10 feet by 15 feet for repairing motorcycles. The room for reconditioning other vehicles is to be 14 feet by 24 feet. These indoor spaces should be no less than the stated ones.

As for the display room, there are again strict rules. For motorcycles, there should be a facility of about 10 by 15. An area of about 18 by 30 is required for the display of other types of automobiles.

NOTE: For selling motor vehicles and obtaining appropriate documents, you should pass a special course. It costs $219 to participate.

Insurance

The next step is to get insurance. For an injury or death of a person, you are to secure $100,000. For two or more individuals, the amount is $300,000. $50,000 coverage is to be provided for the destruction of property of other people.

Bond

During the next phase, you should receive a bond. The latter costs $75,000. The bond confirms that the dealer must follow the Code of the state. And if he/she violates the law stated in the chapters included, they may file a claim.

Iowa Auction License Application Form

After all these procedures, you should download the request form. Several other documents should be also delivered. They are:

• a paper proving that your location meets the standards,
• a copy proving insurance,
• the bond,
• and a copy of your franchise agreement.

Fees

The fees are the following:

• $70 for registration
• $70 for the certificate
• $40 for a plate

Renewal

It is valid for one year. The end date is December 31. For the renewal, you are to fill out the appropriate form. You can also conduct it online.