What distinguishes a new vehicle dealer's license from a used vehicle dealer's license?

A new vehicle dealer's license is specifically designated for dealerships that sell vehicles that have not been previously owned or registered—these are typically cars that come directly from manufacturers or distributors. This means that dealers with this license can market and sell the latest models equipped with the most current features, under factory warranties, and often provide specific manufacturer incentives.

In contrast, a used vehicle dealer's license permits dealers to buy and sell vehicles that have had previous owners. This type of license is focused on resale and the management of pre-owned inventory. The licenses cater to different aspects of the vehicle retail market, thus establishing clear boundaries around the types of vehicles each dealer can lawfully transact.

Understanding these distinctions is important for compliance with state regulations governing vehicle sales, as operating without the appropriate license can lead to penalties or legal issues.