Government websites often end in .gov or .mil. Before sharing sensitive information, make sure you’re on an official government site.
The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.
This is a summary of information regarding the requirements to obtain Alabama dealer licenses and dealer license plates.
Applications for an Alabama dealer regulatory license must be submitted to ALDOR electronically. To apply, visit the Alabama Partner Registration Portal:
Upon submission of the license application, a transmittal sheet will be provided that lists which documents must be mailed to the department.
Who is required to be licensed?
All new and used motor vehicle dealers, including motorcycle and trailer dealers (excluding trailers not subject to titling), wholesale dealers and rebuilders.
What are the dealer license fees?
(Off-site sales licenses must be purchased at least 10 calendar days prior to sale through your MyDMV account.)
A facilitator of an off-site sale is required to obtain a facilitator license. The facilitator will be required to verify the off-site license of participating dealers. The facilitator must list each participating dealer’s off-site sale license number on the application. If the dealer and facilitator are the same entity, only the off-site sales license is required.
What are the bonding requirements?
What are the insurance requirements?
Each dealer must maintain blanket liability insurance coverage for all vehicles owned or associated with the business. Minimum insurance limits are:
After the dealer regulatory license has been obtained, the dealer must visit the county licensing office to purchase the appropriate privilege license(s) (Sections 40-12-51, 40-12-62, or 40-12-169). Dealer plates will be issued by ALDOR, contingent upon proof of the appropriate privilege licenses. Dealer plates may be requested through your MyDMV account.
Who qualifies for each type of license plate?
Dealer (D) and motorcycle dealer plates may be obtained by licensed motor vehicle dealers. Manufacturer plates may be obtained by manufacturers of private passenger automobiles, motorcycles, trucks, truck tractors, or trailers, if the manufacturing facility is located in Alabama.
Are there any restrictions on the number of dealer, dealer transit and manufacturer plates that can be obtained?
Dealer (D) and motorcycle dealer plate restrictions:
There are no limitations on the number of manufacturer and motorcycle manufacturer plates that can be purchased by manufacturers.
What are the fees associated with the plates?
These fees cannot be refunded or prorated.
Who may legally operate vehicles displaying dealer (D) plates?
Are there limitations on the types of vehicles the plates may be used upon?
If the dealer charges customers a fee for the uses listed above, dealer plates cannot be displayed on the vehicle.
Motor vehicle dealers may display standard plates on vehicles in a dealer’s inventory. Ad valorem tax is not due when this occurs.
If the dealer license is revoked or forfeited, all dealer plates shall be returned to ALDOR within 10 calendar days.
Prohibited uses of dealer (D) plates:
Penalties:
Reporting requirements:
If a dealer or manufacturer license plate is lost or stolen, it must be reported to law enforcement and a police report maintained for audit purposes.
If a plate becomes mutilated to the point that it is illegible, the plate must be returned to ALDOR, and a replacement plate will be issued upon payment of the appropriate fee (Section 40-12-265, Code of Alabama 1975).
When a motor vehicle is withdrawn from inventory, the licensed dealer shall purchase an Alabama license plate and register the vehicle.
Motor vehicle dealer, motorcycle dealer, and manufacturer license plates may not be used in lieu of regular issued license plates as a means of avoiding registration and ad valorem tax requirements.
For details, please see Sections 40-12-390 through 40-12-400 and 40-12-264, Code of Alabama 1975.