Who Needs a Salesperson's License

 

Who is considered to be a “Salesperson”?

Virginia Code Section 46.2-1500 defines¬†“Motor vehicle salesperson" or "salesperson" as (i) any person who is hired as an employee by a motor vehicle dealer to sell or exchange motor vehicles and who receives or expects to receive a commission, fee, or any other consideration from the dealer; (ii) any person who supervises salespersons employed by a motor vehicle dealer, whether compensated by salary or by commission; (iii) any person, compensated by salary or commission by a motor vehicle dealer, who negotiates with or induces a customer to enter into a security agreement on behalf of a dealer; or (iv) any person who is licensed as a motor vehicle dealer and who sells or exchanges motor vehicles. For the purposes of this section, any person who is an independent contractor as defined by the United States internal revenue code shall be deemed not to be a motor vehicle salesperson.

This includes, but is not limited to:

  • Any person who is employed by a licensed Virginia dealership to sell or exchange motor vehicles and is NOT an Independent Contractor
  • Any person who negotiates with or induces a customer into a security agreement on behalf of a dealer
  • Any person who supervises a salesperson
  • Any person who is licensed as a motor vehicle dealer (owner of record) and is actively involved in selling motor vehicles

 

Finance & Insurance (F&I) Employees and Sales Managers Must Be Licensed

Legislation adopted by the 2006 General Assembly broadened the definition of a motor vehicle salesperson to include those functions performed by sales managers and dealer employees who are in the Finance and Insurance (“F&I”) side of the automobile sales industry. Anyone who performs the functions described in the definition above must have a salesperson’s license.¬† Regardless of the working title an individual has, if they fit the definition, they must have a salesperson’s license.