Alabama § 40-12-391 - License - Generally.

§ 40-12-391. License - Generally.

(a) No person shall be licensed as a motor vehicle dealer under Section 40-12-51, 40-12-62, or 40-12-169, nor shall any person engage in business as, serve in the capacity of, or act as a new motor vehicle dealer, used motor vehicle dealer, motor vehicle rebuilder, or motor vehicle wholesaler in this state, without first obtaining a master dealer license as provided in this article and, if a new motor vehicle dealer or a used motor vehicle dealer, a state sales tax number.

(b) No person shall engage in the business of buying, selling, exchanging, advertising, or negotiating the sale of new motor vehicles unless he or she holds a valid master dealer license as a new motor vehicle dealer in this state for the make or makes of new motor vehicles being bought, sold, exchanged, advertised, or negotiated or unless a bona fide employee or agent of the licensee.

(c) No person, other than a motor vehicle dealer licensed under this article or a recorded lienholder, may sell a motor vehicle without being currently recorded as the owner or lienholder on the certificate of title or designated as the attorney-in-fact acting on behalf of the titled owner or lienholder. If a person is not in compliance with this subsection, any state or local licensing official or law enforcement officer may impound the motor vehicle until the person provides proper proof of ownership as the currently recorded owner on the certificate of title or as the attorney-in-fact acting on behalf of the titled owner, or as otherwise prescribed by law. This subsection does not apply to abandoned motor vehicles sold under Chapter 13 of Title 32.

(d) Notwithstanding any law of this state providing otherwise, neither a new motor vehicle dealer nor a used motor vehicle dealer nor any person engaged in the business of motor vehicle rental and leasing:

(1) With respect to a credit sale transaction, is required to be licensed under Chapter 19 of Title 5 in order to pay any amount necessary to satisfy a lease on, security interest in, or lien on any motor vehicle either returned to that dealer or to the lessor or traded in by the purchaser in connection with the credit sale transaction, and to include that amount as part of the amount to be paid by the purchaser under the credit sale transaction; or

(2) With respect to a lease transaction, is subject to Chapter 19 of Title 5 or otherwise deemed to have made a loan or credit sale by virtue of paying any amount necessary to satisfy a lease on, security interest in, or lien on any motor vehicle either returned to that dealer or to the original lessor or traded in by the lessee in connection with the lease transaction, and including that amount as part of the amount to be paid by the lessee under the lease transaction.