(Washington, DC) - The Department of Consumer and Regulatory Affairs (DCRA) is making it easier for some used car dealers to obtain the licenses they need from in order to operate used car lots with five or more cars.
DCRA’s final regulations on Outdoor Storage of Motor Vehicles* provide that the operator of an outdoor used car lot with five or more vehicles must file a bond or other security in the amount of $100,000, in addition to the $25,000 bond needed to operate a motor vehicle dealership. Recent experience with these new regulations suggests that the $100,000 bond requirement may be making it impossible for many legitimate dealers to obtain the licenses they need to continue operating their used car lots.
For this reason, until further notice, DCRA will accept a $25,000 bond as satisfying the bond requirement to obtain the license needed to operate a used car lot. As before, the bond required for a used car lot license is in addition to the $25,000 bond required for a motor vehicle dealer license. Therefore, the total bond requirement for a motor vehicle dealer to operate a used car lot is now $50,000 instead of $125,000. This total bond requirement may be satisfied either with two $25,000 bonds (which may be from different companies) or with one $50,000 bond.
More information on DCRA’s Outdoor Storage of Motor Vehicles regulations may be obtained on DCRA’s website.
DCRA will continue to monitor conditions at used car lots throughout the city to ensure that the new regulations protect residential neighborhoods and retail corridors from public nuisances while allowing legitimate used car dealers to stay in business.