Surety Solutions
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By Megan Hinojosa • April 11, 2017

How To Get A Washington Car Dealer License (6 Steps)

washington dealer license

 

In order to legally sell cars in the state of Washington, the Department of Licensing in Washington State requires you to get a Washington Car Dealer License. 

Washington residents are legally allowed to sell up to four vehicles per year without being licensed, as long as the vehicles are registered in their name. To sell any number of vehicles that aren’t registered to you is a criminal felony. 

 

Note on Washington Wholesale Dealer Licenses: Effective July 1, 2017 Washington will stop issuing Wholesale Dealer Licenses. More info here: How to get a Washington Wholesale Dealer License - Not What You Think.

Not sure if you need a dealer license? Check out this post on selling cars without a license.

How to get a Washington Dealer License

 

To get a Washington Dealer License, you'll need to establish a business location, complete a Washington dealer license application, purchase a Washington Motor Vehicle Dealer surety bond, and pay licensing fees. You might also need to complete a dealer education course. 

You can complete these steps online or by mail.

 

Step #1: Obtain a Certificate of Dealer Education (used dealers only)

  • Take a pre-licensing course
  • Pay $300 class fee

To learn more and register for a class visit the WSIADA website.

 

Step #2: Establish business location

Your business site must:

  • Comply with all building codes and zoning
  • Be located at a commercial property
  • Have an exterior sign
  • Have an operating business phone line
  • Be open from 10 am – 4 pm, five days per week
  • Have an area to maintain books and records

For a complete list of requirements, visit the Washington Gov Website: Dealer Licensing 

 

Step #3: Complete Paperwork

 

Have a previous felony? Check out this post on Getting a Dealer License With a Felony.


If you are selling only used vehicles, you will need to submit a Certificate of Dealer Education. To get this certificate, contact either one of the following education providers:

Step #4: Sign up for E-Permitting

All retail vehicle dealers are required to use the E–Permitting system.

Find out more about E–Permitting.

 

Step #5: Purchase Washington Motor Vehicle Dealer Bond

A Washington Motor Vehicle Dealer Bond is a type of surety bond that protects your customers.

If you fail to follow rules and regulations, someone can make a claim against your bond

 

Be sure to apply for the correct bond amount.

  • New and/or used vehicles: $30,000 bond
  • Motorcycles and/or other vehicles: $5,000 bond

(Note: Effective July 1, 2017, there is no longer an option for Washington Wholesale Dealer License or Bond)

You will pay anywhere from 1-15% of the total bond amount. This will be a one-time payment, not a monthly payment.

To see what you'd pay, get a free quote: 


Get A Washington Car Dealer Bond Quote

OR

Get A Washington Motorcycle Dealer Bond Quote

 

Step #6: Pay Fees

  • Motor vehicle dealer license: $975

Only checks or money orders are accepted.

Make them payable to the "Department of Revenue."

 

 

 

Step #7: Submit Paperwork

Check over the Dealer Checklist to make sure you have completed all the necessary paperwork. Then mail all the paperwork, plus original WA Motor Vehicle Dealer Bond to the address below:

State of Washington
Business Licensing Service

PO Bod 9034
Olympia, WA 98507-9034

 

Questions about getting a Washington Dealer License? Contact the Washington Business Licensing Service.

 

Renewing Your Washington Dealer License

 

Your Washington Motor Vehicle Dealer License is valid for one year.

Renew your license with the Business Licensing Service at the Department of Revenue.

They'll mail you a reminder 45 days prior to your license expiration date. The expiration date is printed at the top right corner of your license. The renewal fee will be listed on your reminder notice.

 

When you renew, you will have to submit a Certificate of Dealer Education showing that you have completed at least 5 hours of approved training. To learn how to get this certificate, call (360) 664-6366.

 

Car dealer licensing ebook


Related Links:

How To Get An Auto Dealer Bond

Motor Vehicle Dealer License FAQ

5 Easy Steps To Getting Your Car Dealer License

How Much Does An Auto Dealer Surety Bond Cost?