Vehicle Dealer License

Highway Safety issues licenses under the Dealers Trade License Regulations.

•  These licenses allow for individuals/businesses to carry on the buying and selling of vehicles.
•  The department performs an audit role, responds to consumer queries and complaints.

Requirements

• Have an established place of business within the province.
• Advertise and conduct all transactions through the dealership.
• Vehicles are to remain on the business site and not moved to other locations for viewing.
• If dealership moves to a new location, approval and a new dealer license must be obtained.
• All vehicles for resale must be registered in the dealer’s name within 7 days of purchase.
• 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".
• Dealer plates are transferable from one vehicle to another by the dealer
• Vehicles displaying a dealer plate 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.

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."

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."

Municipal Approval for Commercial Business

Permission in the form of a permit or letter must be obtained from the council within a city, town, village or rural municipality in order to operate a place of business. Please provide a copy of the permit or letter with your application.

If you have any questions on how to obtain Commercial Business approval, or if the place of business is outside an area covered by a community council or improvement committee, contact the Department of Housing, Land and Communities at 902-369-5280.

Entryway onto Arterial Highway

If the place of business will be using an entrance way onto an arterial highway, you must contact the Department of Transportation and Infrastructure for approval at 902-368-5102 (Eastern Region) and 902-438-4037 (Western Region).

Register Business Name 

To register the name of the proposed business, you must contact the Department of Justice and Public Safety at 902-368-4550 for information or visit Corporate Business Registry Services online at https://ocbr.princeedwardisland.ca/ocbr/login.

Apply for HST Number

To register for an HST number, apply to the Canada Revenue Agency (CRA). This number will then accompany your dealer trade license application. You can contact CRA by phone: 1-800-959-5525 or online:
https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/g....

Apply for an Environment Tax Number

Application is to be sent to Department of Finance to set up an Environment Tax Account.  Telephone number is 368-4070 for more information.

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 (Dealer Trade License Regulations) and is available from most insurance companies for a yearly premium. After being duly signed and witnessed, the bond is to be forwarded to:

Department of Transportation and Infrastructure
120 Heather Moyse Drive, Summerside
PEI C1N 5Y8

The Schedule 1 form can be found here: Schedule 1 

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 approved, the applicant can then ready his place of business.
• The office is to be situated at the business location where the vehicles are displayed.
• The sign must be sufficient 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.

Legislation:

For more information on vehicle dealer licenses, please read the Dealer's Trade License Regulations under the Highway Traffic Act.