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Licenses to Sell Boats

By Jennifer Leigh, eHow Contributor
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Boat Auctions South FloridaIn most states, selling boats and other watercraft requires a dealer's license. Each state will require you to submit applications and pay fees, which will vary by state. For example, South Dakota licenses last for five-years and cost $250 initially and $150 for renewals. In Virginia, a watercraft dealer license costs $75 per year. Look for information specific to your state on the state government's website.

  1. Dealer's License

    • The boat dealer's license is similar to an automobile dealer's license. Some states, such as Minnesota, impose additional requirements, however. For example, Minnesota dealers must have $5, 000 surety bond, a commercial building or office space, zoning approval for the selected location of the business and motor vehicle liability insurance. Surety bond is a type of insurance that provides coverage if the licensee fails to meet licensure obligations.

    Wholesale License

    • A wholesale license allows for the sale of boats to dealers only. This type of license provides the best option for those who would prefer to avoid dealing with consumers directly. Licenses are similar to regular dealer's licenses, as the state of licensure may require similar stipulations.

    Other Types of Licenses

    • Many other types of licenses are available to interested dealers. A lessor license allows businesses to lease motor vehicles, including boats, to their customers. A salvage license allows sellers to buy boats from salvage yards and sell them to their customers. An auction license allows dealers to sell boats that belong to others. A used parts license allows for the sale of used parts to customers. A used vehicle license allows for the sale of used boats to customers.

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    Jennifer Leigh

    Jennifer Leigh has been a writer since 2006. She has been published in "Voices of Art Magazine" and on various websites. Leigh holds a Bachelor of Arts in fashion management from the University of the Incarnate Word and is currently pursuing a Master of Educational Psychology at Southern Illinois University.

    [[/blockquote]]

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