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.
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.