Motor Vehicle Auction

Tennessee Motor Vehicle Commission

A Motor Vehicle Auction License includes any auction house that sells motor vehicles to dealers or the public. Automobile auctions in Tennessee are strictly wholesale, by and between licensed auto dealers, and must be registered as a Motor Vehicle Auction in Tennessee.

For licensure as a public automobile auction, please visit the Tennessee Auctioneers Commission website here.

A licensed auto auction that also maintains a motor vehicle dealer license must have a duly licensed salesperson associated with the motor vehicle dealer license, whether or not they function as a traditional dealership. Any licensed motor vehicle dealer, no matter their business structure or how they are associated with their licensed auto auction, must comply with all statutes and rules that govern a motor vehicle dealer license. It is the licensee’s responsibility to understand and follow the rules and statutes that regulate their license(s).

The following requirements must be met prior to notifying the Area Field Investigator of the Tennessee Motor Vehicle Commission to conduct the necessary site inspection and to complete the Application Form for submission to the Commission office for review and final approval.

Licensing Requirements

  1. Building Facility: A building suitable for vehicles to pass through for viewing and auctioning purposes.
  2. Office Furniture: Office space for processing sales and for record retention. Adequate restroom facilities must be available.
  3. Sign Requirements: Minimum of eight (8) inch letters, or as per local ordinance, displaying the auction name. The sign must be permanently installed and clearly visible from the road.
  4. Telephone: The telephone number must be listed in the local directory under the name of the auction company. Mobile and/or cellular phones are not acceptable as the base station telephone. The telephone number must be posted on a sign, door, or window.
  5. Lot and Fence: Auction lot must be graveled or paved and large enough to accommodate parking for 100 vehicles. The auction building and lot must be fenced with material suitable for keeping out unauthorized people, such as chain link.
  6. Registration: An auction employee must be stationed at each entrance of the auction facility for registration purposes of dealers and salespersons and to check for licensing credentials.
  7. Insurance: Evidence of garage keeper’s legal liability in the minimum amount of $500,000 coverage must be provided by a certificate of insurance or affidavit from the insurance provider. The name and address on the certificate must be that of the auction facility. The Tennessee Motor Vehicle Commission at the above address shall be listed as the certificate holder. Check and title insurance approved by the Commission must be maintained.
  8. Business Tax License: A current business tax license issued by the County Clerk must be obtained prior to completion of the application process in the name of the auction. A copy of the license must be provided with the application. The original must be posted in a visible location prior to inspection.
  9. Financial Statement: Must have a compiled financial statement prepared in accordance with the Commission memorandum of minimum acceptable financial statements instructions. An automobile auction must have a minimum net worth of at least $100,000.00.
  10. Corporation/LLC/LLP: If applicable, a copy of the charter of the entity as filed with the Tennessee Secretary of State must be provided, or if an out-of-state corporation or LLC, provide a copy of the Certificate of Authority to do business in Tennessee.
  11. Zoning Compliance: Written approval from the local zoning/land-use authority must be provided. In localities without zoning requirements, a written statement to this effect must be obtained from the authorized county or municipal official. Typically, these statements are prepared by the Office of the County Executive or the Office of the Municipality Mayor.
  12. Surety Bond: The surety bond minimum is $50,000.00 and must be issued by a licensed bonding company on the form provided by the Commission. The duration of the surety bond must begin in the month of the expected license issuance and expire on June 30th of the next odd-numbered calendar year. The original surety bond must be signed by the principal and submitted to this Commission with the license application. The name on the bond must be the same as the entity to be licensed, and the auction address must be the physical address of the auction facility.
  13. Conviction Record:  The applicant must furnish a copy of any court records involving a felony or crime of moral turpitude previously committed by any owner, partner, or financial participant in the corporation/LLC/LLP.
  14. Auctioneer License: Must provide a copy of the auctioneer license with application.

Application & Fees

Complete the “Initial Motor Vehicle Auction Application” online at core.tn.gov. The fee for an initial application is $1,200.