How to Become a Car Dealer in Delaware
Learn how to become a licensed car dealer in Delaware with essential steps, from choosing your license type to submitting your application.
How to Get a Dealer License in Delaware
To operate as a vehicle dealer in Delaware, you must be licensed through the Delaware Division of Motor Vehicles.
Step 1: Choose Your License Type
Dealer license types include:
- New vehicle dealer
- Used vehicle dealer
- Wholesale dealer
Step 2: Register Your Business
You’ll need to:
- Register your business with the state
- Obtain an EIN
- Apply for a Delaware business license
Step 3: Secure a Business Location
Requirements include:
- Permanent office
- Display space
- Visible signage
Step 4: Obtain a Surety Bond
Delaware requires:
- $25,000 dealer bond
Step 5: Submit Your Application
Provide:
- Dealer application
- Proof of insurance
- Background check
- Business registration documents
Step 6: Pass Inspection
Your location must be inspected and approved by the DMV.
How Long Does It Take?
Expect the process to take 2 to 6 weeks.
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Disclaimer
Please note: The contents of this article are subject to change with any regulatory or legislative updates. This article does not constitute legal advice. Always verify the information with your state’s regulatory agency before proceeding.
Sources
https://dmv.de.gov
https://www.bryantsuretybonds.com/blog/delaware-dealer-license
https://www.acvauctions.com/blog/how-to-get-a-dealer-license-in-delaware