To apply, you must:
9 Delaware Dealer License Requirements
Delaware Dealer Licenses are issued by the Division of Motor Vehicles, Dealer Services, in Dover. This page covers Delaware's 8 Dealer License types, their requirements, bond size, costs, and how to apply.
Name your Dealership
Your company name is the first step, because you'll use it through the entire Dealer License process. Delaware's dealer statute accepts “a person, corporation, partnership, proprietorship or any other legal entity.” The MV29 application's officer titles cover a corporation, an LLC (Sole Member), a partnership, and a sole proprietor.
An LLC keeps your business separate from your personal life and adds trust to the name. Every business except a sole proprietor with no employees needs an EIN to get the Division of Revenue business license.
Choose your Dealer License Type
Delaware issues 8 Dealer License types, all on one form: the MV29 asks you to check one “Type of Dealership.” Motorcycle/Moped, Mobile Home, Trailer, and Recycler/Salvage each have their own license, separate from Used.
| License Type | What It Lets You Do |
|---|---|
| WholesaleExtra $75 Division of Revenue wholesale license | Buy and sell at the dealer auctions and with other Dealers, from a private residence if you choose. Exempt from the display-space and sign rules; not eligible for temporary tags |
| Used | Sell used vehicles to the public and buy at the dealer auctions. Requires display space for 5 or more vehicles and a 24-by-36-inch sign |
| New/Franchise | Sell new vehicles as a franchised Dealer |
| Motorcycle/Moped | Sell motorcycles and mopeds. The one Dealer type excused from the print-on-demand temporary tag system |
| Mobile Home | Sell mobile homes |
| Auction | Run a vehicle auction |
| TrailerUtility, horse, boat, and other trailers | Sell trailers. A licensed boat-trailer Dealer can put a dealer plate on a boat trailer, loaded or empty |
| Recycler/SalvageLicensed under a separate chapter, 21 Del. C. Ch. 75 | Run an automotive recycling business from a fixed, zoned location with a fenced, screened storage area for at least 25 vehicles |
Get your Dealer Bond (Surety Bond) — self-financing Dealers only
A Delaware Dealer License requires no bond for a Dealer who sells for cash or through a lender; the dealer licensing law never mentions one. A bond protects customers if a Dealer breaks Delaware's dealer laws.
The one Delaware bond is a $25,000 bond for a retail Dealer who self-finances a sale without charging interest (30 Del. C. §3005(b)). That Dealer files the bond with the Department of Finance before the annual license, unless already bonded as a lender with the Banking Commissioner.
A $25,000 Dealer Bond costs $250 a year, after a credit check.
Dealer 101 Insurance Services
Licensed in Delaware · NPN 22346185
| License Type | You Pay | Bond Amount |
|---|---|---|
| Self-financing retail DealersDelaware - Motor Vehicle Dealer ($25,000). Credit check required | $250/yearabout $21 a month | $25,000 |
| Dealers who don't self-financeCash sales, or financing through a bank or lender, any license type | No Bond Required | |
Get your Dealer Liability Insurance
A Delaware Dealer License requires liability insurance on every vehicle the dealership owns or controls (21 Del. C. §2118). Coverage is at the minimums in Delaware's Financial Responsibility Law, and your insurance agent sets the price.
Proof of insurance goes in with your application, and the policy must cover every dealer plate issued to you. You show proof again each year when you renew your plates.
Set up your Dealer Office (Established Place of Business)
A Delaware Dealer License requires an established place of business, owned, rented, or leased by the dealership (21 Del. C. §6303(a)). A Wholesale Dealer “may operate from a private residence,” and the state's own regulation adds that the office “may be in a home.”
A Used, New/Franchise, Motorcycle/Moped, Mobile Home, Auction, or Trailer Dealer must have display space for 5 or more vehicles and a 24-by-36-inch sign. The table below is the statute and regulation's own list, and the zoning approval goes in with your application.
| Wholesale | Used, New, and other types | |
|---|---|---|
| Location | A private residence is allowed; the office “may be in a home” | An established place of business, owned, rented, or leased by the dealership |
| Office | A desk, chair, and file cabinet adequate to keep records | Sales and office space devoted to the dealership, with a desk, chair, and file cabinet |
| Phone | Installed and listed in the business name | Installed and listed in the business name |
| Display space | Not required | Adequate display space for 5 or more vehicles |
| Sign | Not required | At least 24 by 36 inches, listing the dealership's approved name |
| Temporary tags | Not eligible for temporary tags | A computer and laser printer on the premises for print-on-demand tags; motorcycle Dealers excepted |
| Zoning | Written approval from the local zoning authority, submitted with the application | Written approval from the local zoning authority, submitted with the application |
Pass the Background Check (State Bureau of Identification)
Every owner and officer on a Delaware Dealer License application must submit a certified criminal history. The DMV reads the record itself; there is no yes-or-no conviction question on the form. Fingerprints go to the State Bureau of Identification when you first apply, and again at renewal only after 5 years (§6302(e)).
What each owner and officer submits:
- Delaware residents: your Delaware criminal history from the State Bureau of Identification, 600 S. Bay Road, Dover; appointments at (302) 739-2528. There is a charge for the service
- In Delaware under 2 years: your Delaware history plus a certified criminal history from your last state
- Living outside Delaware: a certified criminal history from your current state
- After licensing: report any change in your criminal history to the DMV within 72 hours (§6313(8))
If you have a record
- Denial is discretionary, not automatic. The law says the DMV “may” deny, suspend, or revoke for a conviction (21 Del. C. §6313); it never says “shall.”
- The waiting period runs from the conviction date. More than 10 years for any felony; more than 5 for a misdemeanor involving theft, fraud, dishonesty, false pretense, or moral turpitude. Other misdemeanors aren't listed grounds.
- You must also be off supervision. No probation, parole, work release, or suspended sentence when you apply, and current on fines, restitution, and community service.
- A pending charge defers your application until the charge resolves; it doesn't deny it.
- Expungement clears it; a pardon alone doesn't. An expunged conviction needn't be disclosed. A pardoned one still must be. A pardon does make you eligible to petition for expungement, and the Board of Pardons lists professional licensing as a reason to hear you early.
Submit your Dealer License Application (MV29)
You apply to the DMV's Dealer Services in Dover on paper, on form MV29, the Application for Dealership License. It ends with a notary block, so there is no online application. The application fee is $100, and every fee is itemized under costs.
Before the DMV approves it, you need a Division of Revenue business license, $100 a year, with the receipt attached to the MV29. MV29 asks no one for an SSN; for each officer it collects a name, home address, birth date, and driver's license number and state.
Every owner of a Used or Wholesale dealership must have had a Delaware driver's license and Delaware residency for at least 90 days before applying. Franchised and new-vehicle Dealers are exempt.
The MV29 also asks for:
- a copy of your lease agreement
- 2 personal references, not relatives or co-applicants, with full contact details
Pass the Site Inspection
A Delaware Dealer License location is inspected by an agent of the Division before the DMV approves the application (2 Del. Admin. C. 2275 §1.15). That includes a Wholesale Dealer's home office. Moving later means another successful inspection before the change of location is approved (21 Del. C. §6311(a)).
Get your Dealer License Plates
Delaware dealer license plates cost $10 each per calendar year, for every Dealer License type (21 Del. C. §2153). Dealer tags let you drive your inventory, and you and your immediate family can drive a plated vehicle for personal pleasure (§2124(a)(2)).
If the dealership is a corporation, up to 3 officers actively engaged in the business, plus their families, get the same personal use. An employee can drive one while operating it, and a prospective buyer can test-drive on it.
How many plates you can get depends on last year's sales:
- Retail: 5 to 10 vehicles sold, 1 plate; 11 to 25, 2 plates; 26 to 49, 4 plates; 50 to 99, 20 plates; 100 or more, any number
- Wholesale: 5 to 10 vehicles sold, 1 plate; 11 to 25, 2 plates; 26 to 49, 4 plates; 50 or more, 20 plates
Dealer License Cost
A Delaware Dealer License costs $100 to apply and $50 a year to renew at the DMV, plus a $100-a-year Division of Revenue business license. Every other fee on this page is in the table.
| Fee | Amount |
|---|---|
| Dealer License (DMV) | $100 application$50 renewal, each year |
| Business license (Division of Revenue) | $100 a year, every Dealer$75 a year more for a Wholesale Dealer |
| Dealer Bond | $250 a year, $25,000 bond, self-financing retail Dealers only; credit check required |
| Liability insurance | Priced by your agent |
| Dealer plates | $10 each, per calendar year |
| Dealer reassignment formsIssued in batches of 5 | $10 each; $50 minimum |
| Criminal history (State Bureau of Identification) | Fee set by the Bureau |
| DelDOT entrance permitOnly if your location fronts a state-maintained road | Fee not published |
| Vehicle handling feePaid quarterly to the Department of Finance once you're selling | $2 per vehicle sold |
Dealer License Renewal
A Delaware Dealer License expires at midnight on December 31 of the year it was issued (21 Del. C. §6304). Renewal is $50 at the DMV, plus the $100 Division of Revenue business license, and $75 more for a Wholesale Dealer.
Dealer plates renew on the same date, $10 each, within the 90 days before.
Common Questions
Can you get a Delaware Dealer License with a felony?
Yes, it's possible. A felony isn't an automatic bar; the DMV “may” deny for one (21 Del. C. §6313). A waiver is allowed once more than 10 years have passed since the conviction. You must also be off probation, parole, or work release and current on restitution. An expunged conviction is cleared; a pardon alone isn't.
Can you get a Dealer License in Delaware without a lot?
Yes, on the Wholesale license. Delaware's statute says a Wholesale Dealer “may operate from a private residence,” with no display space and no sign required (21 Del. C. §6307). You still need zoning approval, a phone listed in the business name, liability insurance, and a pre-approval inspection. The full list is under Office.
How many cars can you sell in Delaware without a Dealer License?
In Delaware, a Dealer License is required once you buy, sell, or offer 5 or more vehicles in any 12-month period (21 Del. C. §§6301–6302). The count is on the vehicles, not why you're selling them; Delaware carves out no exception for vehicles titled in your own name.
Do you need a bond for a Delaware Dealer License?
Not for most Dealers. Delaware's dealer licensing law has no bond requirement. The one bond, $25,000, is for a retail Dealer who self-finances sales without charging interest (30 Del. C. §3005). If your buyers pay cash or finance through a lender, you post no bond. Details under Dealer Bond.
Do you have to live in Delaware to get a Dealer License?
For a Used or Wholesale license, yes. Every owner must have held a Delaware driver's license and Delaware residency for at least 90 days before applying (21 Del. C. §6302(c)). Franchised and new-vehicle Dealers are exempt. A non-owner officer lists a driver's license from any state on the MV29.
How long does a Delaware Dealer License take?
No Delaware law sets a deadline for the DMV to decide. Once satisfied of your good character and compliance, the DMV “shall approve the application” (21 Del. C. §6312), and the site inspection happens before that approval.
Do I need a business bank account?
No. Nothing in Delaware's dealer law, its licensing regulation, the Dealer Procedural Manual, or the MV29 application asks for a bank account or account number.
How much does a Delaware Wholesale Dealer License cost?
A Delaware Wholesale Dealer License costs $100 to apply at the DMV. Each year it also needs two Division of Revenue licenses: the $100 business license and an additional $75 wholesale license. Dealer plates are $10 each, and there is no bond, class, or exam.
Support
Dealer Services in Dover handles every Dealer License application in Delaware; there are no county dealer offices. The Division of Revenue issues the separate business license, and the DMV's dealer portal handles license lookups and fee calculation once you're licensed.
| Contact | Detail |
|---|---|
| Department | Delaware Division of Motor Vehicles, Dealer Services (Dover Dealer Section) |
| Phone | (302) 857-4665 |
| [email protected][email protected], help desk | |
| Address | DMV Administrative Office, 303 Transportation CircleP.O. Box 698, Dover, DE 19903 |
Additional sources (7)
The forms and the portal for each step are linked in the steps. These are the law, the rules, and the agency pages the page was checked against.
- 21 Del. C. §2153, plate fees — $10 per set of dealer plates each calendar year
- 21 Del. C. Ch. 75, automotive recyclers — the separate chapter that licenses a Recycler/Salvage Dealer, including the 25-vehicle fenced storage area
- House Bill 164 (85 Del. Laws, c. 40) — the act behind the $100 application fee and $50 renewal fee in 21 Del. C. §6302(f); the DMV's Dealer Procedural Manual predates it and still prints “no fee”
- 11 Del. C. Ch. 43, Subchapter VII, expungement — an expunged conviction need not be disclosed for any purpose, and licensing is not on the exceptions list
- 11 Del. C. Ch. 43, Subchapter VI, pardons — an unconditional pardon restores civil rights but does not erase the conviction
- Board of Pardons FAQ — why a pardoned conviction is still disclosed, and professional licensing as a reason to hear an application early
- 29 Del. C. §8735(x), licensing and criminal history — Delaware's individualized-assessment rule for professional licenses, which covers Title 24 licenses only and does not reach the Dealer License
