How to Become a Car Dealer in Delaware

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