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Frequently Asked Questions

Q: How do I expedite the process of applying for a Motor Vehicle Dealer’s License?
A: A document has been prepared which answers many questions about the application process. [PDF - 142KB]

Q: How do I advertise consumer credit terms to conform to Federal Trade Commission regulations?
A: Follow this link to view the Federal Trade Commission requirements.

Q: How do I advertise consumer lease terms to conform to Federal Trade Commission regulations?
A: Follow this link to view the Federal Trade Commission requirements.

Q: What is the Used Car Rule?
A: The Used Car Rule is defined by the Federal Trade Commission on their website entitled A Dealer’s Guide to the Used Car Rule.

Q: How do I locate and contact various State Vehicle Boards and Commissions?
A: Vehicle Boards and Commissions contact information is available on the National Association of Vehicle Boards and Commissions website. External Link - You are now leaving the .gov domain.

Q: What are the statutes that govern the manufacture and sale of motor vehicles in the Commonwealth of Kentucky?
A: The Kentucky Revised Statutes (KRS) that bear on the regulation of Motor Vehicle Sales are:

Q: What are the regulations that govern the manufacture and sale of motor vehicles in the Commonwealth of Kentucky?
A: The Kentucky Administrative Regulations (KAR) that bear on the regulation of Motor Vehicle Sales are:

Application FAQ's

Q: When are Commission meetings held?
A:
Meetings are tentatively scheduled for the 2nd Friday of each month.

Q: When should my application be submitted to be considered at the next regularly scheduled meeting?
A:
Completed applications are required to be received 10 working days prior to the regularly scheduled Commission meeting.

Q: Will my application be returned if incomplete?
A:
Yes, an incomplete application cannot be considered.

Q: How will I be notified after submission of my application of its status?
A:
Correspondence will be mailed to your physical business address or alternate PO Box (if PO Box is in business city).

Q: Do I have to have a mailbox at my physical address of business?
A:
Yes, or an alternate PO Box in the city of business.

Q: Can my mail be mailed to my home?
A:
No, Motor Vehicle Commission mail may only be sent to the physical address of business or a PO Box in the same city.

Q: Does my facility need to be complete, meeting all facility requirements as outlined in the Dealer Requirements, including permanent business sign, furnishings and utilities?
A:
Yes, an inspector will visit your location after submission of your application, prior to the date of the next regularly scheduled meeting. An incomplete facility may result in the denial of the application.

Q: Is physical lot separation required if there are multiple businesses or uses at the same location?
A:
Yes, physical lot separation is required for a location used for other purposes. A display/customer parking area of 2,000 sq. ft. (minimum), must be established for the exclusive use of the motor vehicle business. This exclusive display/customer parking area must be immediately adjacent to the office and must not allow the flow of through traffic or any non-related use.

Q: Does my interior office need to be separate from other businesses operated at my location?
A:
Yes, an interior office space of 100 sq. ft. should be designated and separate from other offices, but does not need to be a separate walled enclosure.

Q: Does my business sign have to have a minimum of 9 inch letters?
A:
Yes, and must be permanently erected and visible from the nearest roadway.

Q: Does my business sign have to match the name of my business, including "Inc" or "LLC"?
A:
Yes, or file an assumed name certificate (page 7A of the dealer application) with the Kentucky Secretary of State and the (county of business) County Clerk's office.

Q: If I am a Corporation or Limited Liability Company do I have to provide a copy of the filed Articles with my application?
A:
Yes, a filed copy is required for a completed application.

Q: I am currently a Corporation or LLC and I want to dissolve the Corporation or LLC by either forming a new Corporation or LLC or become a sole proprietor; what is required?
A:
A new appliation, this is considered as a majority change of ownership.

Q: What if I have a partner(s) in the ownership structure of this business?
A:
Any partnership, including husband and wife, must file a Certificate of Assumed Name form with the Secretary of State's Office and the business County Clerk.

Q: What if I am a sole proprietor and I want to use my last name in the business name, do I need to file an assumed name certificate?
A:
No, a sole proprietor is required to file this form if the last name is NOT used in the business name.

Q: I am currently a sole proprietor and want to become a Corporation or LLC, what do I need to provide the Motor Vehicle Commission?
A:
This is a majority change of ownership and a complete application must be returned for consideration by the Motor Vehicle Commission. A new dealer license certificate will be issued.

Q: What if I want to add an additional partner, who will acquire no more than 50% of ownership?
A:
An additional partner can be considered by completing a partial application. A partial application is pages 1, 2, 2A, 4, 5, and 7A, if applicable.  You will also need to pay a processing fee of $40.00, a background check fee of $20.00, and $20 for the salesperson license.  

Q: What if I have a partner(s) that wants to release his ownership interest?
A:
As long as the percentage of ownership is not a majority (over 50%), just provide the Motor Vehicle Commission with a notarized statement releasing the ownership interest.

Q: I have found a new location and would like to change the location of my business.  What do I need to provide the Motor Vehicle Commission?
A:
Change of location requires the completion of a new application in its entirety.  A dealer must notify the commission office within 30 days prior to relocating business.  

Q: I have found a new location for my business in a different county than currently licensed, what do I do?
A:
Follow the same procedures for change of location application.  An amended license will be issued when approved, reflecting the new county of business.

Q: What do I do with Dealer Plates/Temp Tags assigned to the previous county of business?
A:
Dealer plates/Temp Tags must be returned to the previous county of business.

Q: What do I do with the amended dealer license issued for the new county of business?
A:
Present the amended dealer license certificate to the new county clerk for registration and obtain new dealer plate(s) and temporary tags.

 

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Last Updated 8/27/2012
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