What must vehicle dealerships maintain to operate legally?

To operate legally, vehicle dealerships are required to maintain a dealer's license and salesmen licenses. The dealer's license is essential as it allows the dealership to legally buy and sell vehicles. This license signifies that the dealership meets certain state requirements, including having a physical location and adhering to specific regulations related to the sale and distribution of motor vehicles.

In addition, the requirement for salesmen licenses ensures that the individuals selling vehicles on behalf of the dealership are properly trained and authorized. This protects consumers by ensuring that sales personnel are knowledgeable about the vehicles they are selling and the legal obligations involved in those transactions. Having both a dealer's license and salesmen licenses is crucial for compliance with state laws and to promote ethical sales practices within the automotive industry.

While business insurance policies and credit reports may be important for other operational aspects, they are not mandatory legal requirements for the basic operation of a vehicle dealership.