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Crystal Ignatowski By Crystal Ignatowski • June 23, 2017

How To Get a Washington Wholesale Dealer License - Not What You Think

washington wholesale dealer license

 

How to get a Washington Wholesale Dealer License

 

Effective July 1, 2017, you will no longer be able to apply for a Washington Wholesale Dealer License. The Washington Department of Licensing (DOL) will stop issuing these licenses as of July 1, 2017.

As of July 1, 2018, the DOL will not be renewing old Washington Wholesale Dealer Licenses.

As of July 1, 2019, the entire “wholesale dealer license” category will be eliminated from Washington state laws.

Read the fine print in the bill: House Bill 1722.

 

What does this mean if you are already licensed as a wholesale dealer?

 

If you already have a Washington Wholesale Dealer License, the DOL will allow you to transition to a retail vehicle dealer license.

The process will mostly likely be different than applying for a retail vehicle dealer license as a new applicant. Contact the DOL for information on how to make this license transition.

 

Leading up to the new bill

 

Washington Wholesale Dealer Licenses have been under scrutiny for a while. There was said to be an 800% increase in applications for wholesale dealer licenses, with applicants not even residing in Washington. At some locations, 112 holders of wholesale licenses rented one single office space for their business location. The state needed to take action.

Back in 2016, Washington Legislature took action to change the state’s wholesale dealer license laws. The new law (ESSB 6606) set to stop out-of-state businesses with no connection to Washington from obtaining licenses to conduct business outside the state.

The law included limiting wholesale dealers in Washington to only buy and sell vehicles from and to other Washington state licensed dealers. It also prohibited three wholesale dealers from sharing a single location for business.

While legislature tried to tighten up requirements, individuals found a way to work around the law. Ultimately, the decision to eliminate the wholesale dealer license type entirely became the only solution left.

For more information on the actual vote of this bill, view the following story in the Spokesman.

 

What now?

If you are licensed as wholesale dealer in Washington, the DOL will contact you with the chance to transition to a retail vehicle license.

View our guide on how to get a retail vehicle dealer license.

 

For further help, contact the Washington DOL.

 

Related Links:

Senate Votes To End Washington’s Wholesale Auto Dealer License To Avoid Fraud