• About the Department
• Department Directory
• Capital Projects
• Highway Maintenance
• Highway Safety
• Land and Environment
• Public Works and Planning
• Infrastructure
• Finance and Human Resources
• Legislation
• Freedom of Information and Protection of Privacy
• Forms
• Publications

    

HOME / GOVERNMENT PROGRAM AND SERVICES / BUSINESS /

Vehicle Dealer License

Highway Safety issues approximately 148 licenses under the Dealers Trade License Regulations. This license allows for individuals/businesses to carry on the buying and selling of vehicles. The department performs an audit role, responds to consumer queries and complaints.

Dealer Regulations

Regulations pertaining to Dealer Trade License for all PEI Dealers.

Requirements:

1. Have an established place of business within the province.


2. Advertise and conduct all transactions through the dealership.


3. Vehicles are to remain on the business site and not moved to other locations for viewing.


4. If dealership moves to a new location, approval and a new dealer license must be obtained.


5. All vehicles for resale must be registered in the dealer’s name within 7 days of purchase.


6. All vehicles must be inspected in the dealer’s name or the inspection sticker must be removed and sold as " not inspected". This must be written on the front of vehicle registration permit as "sold not inspected".


7. Dealer plates are transferable from one vehicle to another by the dealer, but dealer plates displayed thereon, shall not be used for any other purpose than for the trial and adjustment of the vehicle, or for demonstration to a prospective buyer, or for some other purpose incidental to the business of the dealer.


8. It is a violation of the law when a motor vehicle, trailer, etc displaying a dealer plate is rented or used by any person for the purpose of conveying passengers or freight or operated for private use.
   Section 46 (Highway Traffic Act) states "If any dealer uses or permits to be used any motor vehicle, trailer, or semi trailer for private use or hire he is immediately liable to pay the registration fee for such motor vehicle, trailer or semi-trailer in addition to the penalties provided by the Act."


9. Section 48(3) (Highway Traffic Act) states " The Registrar may suspend or cancel any dealer’s trade license or any wrecker’s license issued under this Act for non-compliance with or infraction of any of the provisions of this Act or of the regulations, by the holder of such dealer’s trade license or wrecker’s license."

1. Municipal approval for business
   
   Permission in the form of a permit or letter must be obtained from the town, village or community council in order to operate a place of business within a municipality. Please forward a copy of the permit or letter with your application. If place of business is outside an area covered by a Community Council or Improvement Committee, contact the regional representative of the Community and Cultural Affairs, Planning and Inspection Services for letter of approval.
   
   
   • West Prince - 859-8850
   • East Prince - 888-8056
   • Queens & Kings - 838-0639


2. Entryway onto arterial highway
   
   If place of business will be using an entranceway onto an arterial highway, contact Transportation and Infrastructure Renewal:
   
   
   • Queens County - 368-5102
   • Prince County - 888-8273
   • Kings County - 652-8974


3. Register name with the Department of Environment, Labour and Justice
   
   Register your proposed dealer name (eg: Bill’s Used Cars) with Justice & Public Safety.  Call 368-4550 for information. Applications can be printed found at http://www.gov.pe.ca/jps/ProgramAndServices.php


4. Application for Vendor number and/or dealer tax book
   
   Application to be made with Finance & Municipal Affairs for a dealer tax book.  Telephone number is 368-4148 for more information.  Application can be found at http://www.gov.pe.ca/forms/pdf/666.pdf


5. Security Bond.
   
   Applicants are required to submit a security bond in the amount of $15,000.00 which is to be in the format contained in the Schedule Form 1(attached) and is available from most insurance companies for a small yearly premium. After being duly signed and witnessed, the bond is to be forwarded to Transportation & Infrastructure Renewal, Highway Safety Division, 120 Harbour Drive, Summerside, PEI C1N 5L2.


6. Repair and Inspection Facility
   
   If the applicant does not have an inspection station on site, a written statement from an inspection station operator is to be returned with the application stating that they will do necessary repairs and inspections for the dealership.  After the application is completed, the applicant can then ready his place of business.  After the application is approved, the applicant can then ready his place of business.
   
   
   • Office: To be situated at the business location where the vehicles are displayed.
   • Sign: Must be sufficent to advertise and identify the vehicle dealership.
   
   When business premises are ready, contact this office and an officer from Highway Safety Division will visit and conduct a site inspection.  Approval from the Registrar is required to license being issued.  If further information is required, please contact 432-2714 or 888-8264.

Forms

Application for a Motor Vehicle Dealer Trade License	(PDF)
Schedule Form 1	(PDF)