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Discover the requirements and process for obtaining a dealer’s license in Kansas so that you can legally sell vehicles in the state.
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Introduction
The State of Kansas requires that all car dealers have a valid license. The requirements for obtaining a license vary depending on the type of dealership you wish to operate. For example, if you wish to sell used cars, you must first obtain a license from the Kansas Motor Vehicle Department (MVED). If you wish to sell new cars, you must first obtain a license from the Kansas Department of Revenue (KDOR).
The process for obtaining a dealers license in Kansas is outlined below. Be sure to follow all steps carefully in order to avoid any delays or complications.
Step 1: Determine which type of dealership you wish to operate. As mentioned above, the requirements for obtaining a license vary depending on the type of dealership you wish to operate. If you are unsure which type of license you need, please contact the Kansas Motor Vehicle Department or the Kansas Department of Revenue for more information.
Step 2: Obtain the necessary application forms from the appropriate agency. For used car dealerships, please contact the Kansas Motor Vehicle Department. For new car dealerships, please contact the Kansas Department of Revenue.
Step 3: Complete and submit all required application forms along with any supporting documentation to the appropriate agency. Be sure to submit all forms and documentation in a timely manner in order to avoid any delays in processing your application.
Step 4: Pay all required fees associated with your application. Fees will vary depending on the type of dealership you wish to operate and the number of vehicles you intend to sell.
Step 5: Once your application has been approved and all fees have been paid, you will be issued a dealers license by the appropriate agency. This license must be displayed prominently at your place of business.
Congratulations! You are now officially licensed as a car dealer in Kansas!
The Process of Applying for a Dealer’s License in Kansas
In order to get a dealer’s license in Kansas, you need to complete an application and submit it to the Kansas Department of Revenue. You will also need to provide proof of insurance, a surety bond, and a performance bond. The application fee is $200.
Applying for a License
The process of applying for a license as a motor vehicle dealer in Kansas is started by submitting an Application for Dealer’s License to the Division of Vehicles. The non-refundable application fee is $150. If you submit your application by mail, you must include a check or money order made out to the Kansas Department of Revenue.
License Fees
All motor vehicle dealers in Kansas must have a license to operate. The license fee for a standard dealership is $200, and the license fee for a motorcycle dealership is $100. If you want to add both types of vehicles to your dealership, you will need to pay a total of $300 for your license.
To get your dealer’s license in Kansas, you will first need to complete an application form. You can get this form from the Kansas Department of Revenue (KDOR). Once you have completed the form, you will need to send it along with your payment to the following address:
Kansas Department of Revenue
Office of Vehicles
Attn: Dealer License Section
PO Box 3509
Topeka, KS 66601-3509
License Types
There are several different types of licenses that are issued by the Kansas Department of Revenue. The type of license you will need depends on the type of vehicle you will be selling.
-Motor vehicle dealer’s license – allows the licensee to buy, sell, or exchange 4 or more motor vehicles in a 12-month period.
-Motorcycle dealer’s license – allows the licensee to buy, sell, or exchange 2 or more motorcycles in a 12-month period.
-Power unit dealer’s license – allows the licensee to buy and sell power units only. A power unit is defined as a self-propelled nonexchangeable vehicle which has motive power and is designed for attachment to a load bearing device such as a trailer.
-Recreational vehicle dealer’s license – allows the licensee to buy and sell recreational vehicles only. A recreational vehicle is defined as a vehicular unit primarily designed as temporary living quarters for recreational travel or camping, which either has its own motive power ,or is mounted on or towed by another vehicle .
In order to obtain a dealer’s license, you must first secure a surety bond in the amount of $35,000 made payable to the state of Kansas.
Operating a Business with a Dealer’s License in Kansas
If you want to operate a business that sells or leases vehicles in Kansas, you’ll need to obtain a dealer’s license from the Kansas Department of Revenue (DOR). The process involves completing an application, passing a background check, and paying the associated fees. In this article, we’ll give you an overview of what you need to do to get a dealer’s license in Kansas.
Sales Tax
In Kansas, the sale of motor vehicles is subject to a state sales tax of 6.5%, as well as any applicable local sales taxes. The tax is imposed on the total selling price of the vehicle, including any trade-in allowance. The dealer is responsible for collecting the tax from the buyer and remitting it to the state.
Some cities in Kansas also have an additional local option sales tax of up to 2%, for a total maximum sales tax of 8.5%. In addition, all counties in Kansas have a wheeled vehicle registration fee ranging from $5 to $30, depending on the county.
Buying from Auctions and Auto Shows
You may buy vehicles from licensed Kansas dealers, auto auctions, or motor vehicle shows. If you buy from a dealer, ask to see their license. The license number will begin with “KS” followed by six numbers. The name of the business and the license expiration date should be on the license.
Auto auctions are usually open only to licensed dealers. If you are not a dealer but would like to buy a car at an auction, you may contact a licensed dealer and ask if they would be willing to bid on a car for you. You should have a signed purchase agreement with the dealer before they bid on the car.
Motor vehicle shows are usually open to the public and are a good place to shop for vehicles. The vehicles at these shows are usually new or nearly new models.
Recordkeeping
In order to obtain and maintain a Kansas Dealer’s License, a car dealer must keep complete and accurate records of all vehicles purchased, sold, or traded-in. The following is a list of mandatory records that must be kept:
1. A daily log or journal of all vehicles offered for sale containing the following information for each vehicle:
-the name, address, and telephone number of the seller
-the name of the selling dealer, if different from the licensee
-the date of acquisition
-the odometer reading at time of acquisition
-the year, make, model, color, vehicle identification number (VIN), and license plate number of the vehicle
-the type of ownership documentation received from the seller at time of acquisition: title, manufacturer’s statement of origin (MSO), reassignment form from lienholder, out-of-state title assignment form from lienholder indicating no active lien on vehicle being reassigned
2. A copy of every sales invoice prepared for each customer containing the following information:
-name and address of buyer
-“As Is” disclosure statement as required by statute if selling “As Is”
-total purchase price
-any trade-in allowance given to the buyer expressed in dollar amount and as a percentage of the sales price
-down payment amount paid by buyer whether in cash or trade equity
Method used to calculate monthly payments (if using installment sale contract) including interest rate to be charged (if using installment sale contract) Listing of all charges made which are not part of the negotiated selling price such as dealer delivery charges and extra accessories installed by dealer at customer’s request If any portion other than cash was used as down payment (i.e. trade equity), list make, model year, VIN number and odometer reading for each trade equity vehicle
Conclusion
You have now completed the process on how to get a dealers license in Kansas. You are ready to start buying and selling vehicles! Remember to keep up with your license renewal and to stay organized with your paperwork. If you have any questions, don’t hesitate to reach out to your local DMV office for help.
