Automotive Businesses for Sale in BC

Generally not automatically. The Vehicle Sales Authority licenses the dealer, so a new owner should confirm with VSA Licensing what application is needed before selling vehicles to retail customers.

BC law automatically treats anyone selling more than five vehicles per year as a dealer requiring VSA licensing — if the business's volume is near that threshold, confirm its current licensing status before assuming an exemption applies.

Not necessarily a full new application, but do not ignore it. The Vehicle Sales Authority of BC says a motor dealer registration is not transferable, and a change in shareholders, directors or officers must be reported on a Notice of Change within 14 days. If the registrar considers the change to be a change in ownership, the new owners must apply for a new registration. New shareholders, directors and officers also submit applicant profiles. Ask the authority and your lawyer before you commit to a deal structure.

The Vehicle Sales Authority of BC (VSA) lists police information checks for a dealership's principals and salespeople, credit checks, at least one licensed salesperson, and licences for everyone who deals with consumers. Application fees and annual contributions to the Motor Dealer Customer Compensation Fund also apply, and fees are based on the type and number of vehicles sold. Build approval time and these costs into your closing plan, and confirm current requirements with the VSA.

Generally yes. The Vehicle Sales Authority of BC says everyone who takes part in soliciting, negotiating or arranging the sale or lease of a motor vehicle to a consumer must be licensed as a salesperson, which involves a mandatory course, an employment authorization from the dealer, and annual renewal. Each location also needs its own motor dealer licence. When buying a multi-location dealership, ask for the licence status of every location and every salesperson, and confirm who will stay on.