To apply, you must:
9 Rhode Island Dealer License Requirements
Rhode Island Dealer Licenses are issued by the Motor Vehicle Dealers License and Hearing Board, through the DMV's Dealers' License and Regulations Office. This page covers Rhode Island's 4 Dealer License types, their requirements, bond size, costs, and how to apply.
Name your Dealership
Your company name is the first step, because you use it through the entire Dealer License process. Rhode Island's Dealer application accepts a sole owner, partnership, corporation, or LLC.
An LLC keeps your business separate from your personal life and adds trust to the name. A used-vehicle dealership's name must include the words “Auto Sales,” a rule stated in the application instructions.
With a corporation or partnership, you can add an officer or partner and keep your license. You notify the Department in writing within 10 days (280-RICR-30-20-1 §1.7(B)). The license doesn't transfer to a new business entity without the Department's approval, so start as the business type you'll keep.
Choose your Dealer License Type
Rhode Island issues 4 Dealer License types through one Hearing Board, with no pre-license class and no exam for any of them. The Motor Vehicle Dealer's License comes as New, Used, or New & Used on the New Dealership application. A franchise Dealer files the separate Franchise application instead.
| License Type | What It Lets You Do |
|---|---|
| Motor Vehicle Dealer's LicenseNew Vehicles Only, Used Vehicles Only, or New & Used Vehicles | Buy and sell vehicles as a Rhode Island Dealer, at the dealer auctions and to the public. |
| Motor Vehicle Dealer's License, mopeds, motorcycles, or motor scooters onlyStamped “For mopeds, motorcycles, or motor scooters only” | Buy and sell mopeds, motorcycles, and motor scooters only, from a 1,200-square-foot building instead of 2,400. Its dealer plates can't go on any other vehicle type |
| Motor Vehicle Auction Dealer's LicenseStamped “auction dealer only” | Run a motor vehicle auction. Requires a 7,000-square-foot building, a 5-acre display lot, and its own $50,000 bond (280-RICR-30-20-1 §1.10) |
| Motor Vehicle Leasing/Rental LicenseApplication DLR001 | Lease or rent motor vehicles under a separate license (§31-5-33), with its own application and a 30-day decision clock |
Get your Dealer Bond (Surety Bond)
A Rhode Island Motor Vehicle Dealer's License requires a $50,000 bond, filed with the Dealers' License and Regulations Office (280-RICR-30-20-1 §1.6(O)). The bond protects customers if you break Rhode Island's dealer laws. A $50,000 Dealer Bond costs only $500 a year at the base rate, after a credit check.
The bond is issued by a surety company authorized in Rhode Island, and it expires December 31; you refile it every year with your renewal. An Auction Dealer's License requires its own $50,000 bond. The Leasing/Rental License's financial statement must show a net worth of at least $10,000 instead of a bond.
| License Type | You Pay | Bond Amount |
|---|---|---|
| Motor Vehicle Dealer's LicenseRhode Island - Vehicle Dealer. Credit check required | $500/yearabout $42 a month | $50,000 |
| Motor Vehicle Dealer's License, mopeds, motorcycles, or motor scooters onlyRhode Island - Vehicle Dealer. Credit check required | $500/yearabout $42 a month | $50,000 |
| Motor Vehicle Leasing/Rental License | No Bond Required | |
Get your Dealer Plate Insurance (GU-1338 Filing)
A Rhode Island Dealer License application requires an insurance filing on your dealer plate coverage, the GU-1338 certificate, before the license is finalized. The original certificate, in the D/B/A name, goes to the DMV's Financial Responsibility Office at the Cranston DMV.
It is a closing item on the New Dealership, Franchise, and Leasing/Rental applications alike, and the Financial Responsibility Office answers at (401) 462-9246.
Set up your Dealer Office (Established Place of Business)
A Rhode Island Motor Vehicle Dealer's License requires a building with at least 2,400 square feet of enclosed, heated, ground-level floor space (280-RICR-30-20-1 §1.6). Basements and second floors don't count toward the minimum. The regulation says the place of business “must be used exclusively by the dealer for the purpose of displaying, repairing, buying and selling vehicles.”
The dealership must be primarily a dealer in motor vehicles, not a sideline of another business. A gas station that converts must remove all retail gasoline pumps and signs, and a scrap or salvage dealer must operate from a separate location. The rest of the rule is in the table below.
| What Rhode Island Requires | |
|---|---|
| Building | At least 2,400 sq ft of enclosed, heated, ground-level floor space, for an office and repair space; 4,800 sq ft if you also run a body shop |
| Motorcycle-only Dealers | 1,200 sq ft of building |
| Outside display | At least 2,400 sq ft, used exclusively for displaying, buying, and selling vehicles |
| Sign | At least 24 sq ft on the front of the premises, in lettering that can be readily discerned, showing the exact licensed or D/B/A name; smaller only where local zoning caps signs below 24 sq ft |
| Lease or deed | A lease of at least one year, or the deed if you own the property, stating the building and outside-area square footage |
| Phone | A business telephone installed at the address before the license issues |
| Zoning | Written proof the property is zoned for motor vehicle dealing, or a copy of your active city or town second-hand license where the town requires one |
| You submit | 4 photographs of the premises: front, right side, left side, and rear, showing the whole building and lot |
Pass the Background Check (BCI Record Check)
Every owner, partner, or corporate officer on a Rhode Island New Dealership or Leasing/Rental application must submit a BCI record check. The Bureau of Criminal Identification check comes from the Attorney General's Office, with a picture ID attached. Any state's driver's license or ID card, or a U.S. passport, works. The Franchise application's own instructions don't include one.
An owner who isn't a Rhode Island resident, or moved in within the past 5 years, also needs a criminal record check from the prior state. If you're out of state, the Attorney General's page says to get fingerprint cards from a fingerprinting agency in your state.
Where to get the BCI check:
- Attorney General's Office, 150 South Main Street, Providence, (401) 274-4400
If you have a record
- Denial is discretionary, not automatic. The Board “may” deny for unfitness (§31-5-11), and no Rhode Island dealer law names a felony or sets a waiting period. Rhode Island's occupational-licensing law, §28-5.1-14, lets a conviction count only if the crime substantially relates to the occupation.
- Two clean years count as rehabilitation. The same law weighs at least 2 years after release, or 2 years after sentencing on probation, with no new conviction or pending charge (§28-5.1-14(g)).
- Expunged records are off the table. An expunged conviction can't be used, and you may say you were never convicted of it (§12-1.3-4). Arrests with no conviction and misdemeanors with no possible jail time can't be used either.
- What you disclose. The New Dealership and Franchise packets ask whether you or any employee has had criminal charges or violations of Rhode Island law lodged against them. The Leasing/Rental application asks whether you've ever been found guilty of a felony or a fraudulent act. Both are sworn statements.
- You get a hearing and can appeal. Every application goes before the Hearing Board. A conviction-based denial requires written notice and 30 business days to respond, and a denial can bar reapplying for at most 2 years. Any final order can be appealed to Superior Court within 20 days (§31-5-16).
Submit your Dealer License Application (New Dealership Application)
You apply on paper to the Dealers' License and Regulations Office in Cranston. The license fee is $303.50 per location, paid by company check, and every fee is itemized under costs. The Leasing/Rental License has its own application, DLR001, with a $103.50 fee.
The New Dealership and Franchise applications require an approved $50,000 line of credit from a financial institution, in the dealership's name. The New Dealership and Leasing/Rental applications also take a CPA-prepared financial statement. The line of credit is reaffirmed every year at renewal.
After the Board approves you, the last step is a sales tax permit from the Division of Taxation on Form BAR. That form asks each owner, partner, or corporate officer for a Social Security number, and the business for its FEIN where it has one. It also needs the dealership's physical Rhode Island street address, not a PO box.
Get Board Approval (Dealers' Hearing Board)
A Rhode Island Dealer License application goes before the 5-member Motor Vehicle Dealers License and Hearing Board, which votes to grant or deny it (§31-5-2.1). The Board is 2 licensed Rhode Island Dealers, 1 new-car and 1 used-car, a state police officer, a Department of Revenue employee, and an attorney.
There is no site inspection: the Department and the Board review the 4 photographs sent with your application (280-RICR-30-20-1 §1.7(A)).
After you apply:
- your application is investigated, and a 30-day protest period runs
- if no protests come in, the application goes before the Board
- if the Board approves, you have 30 days to send the closing documents: your sales tax permit, plate request, sign photo, and fee
- the Office finalizes your license
Get your Dealer License Plates
A new Rhode Island Dealer is issued 3 dealer plates at licensing (280-RICR-30-20-1 §1.7(H)). After 6 months you can apply for more: the Department issues 3 plates for every 100 vehicles sold a year, counting the original 3.
Dealer tags let you drive your inventory. Rhode Island's rules don't grant a personal-use allowance for dealer plates, and loaning or leasing a plate is grounds for immediate license revocation.
Plates are reissued in a new color every 3 years: one color for new-vehicle Dealers, one for used-vehicle Dealers, and one for transporter plates (§31-3-25). Motorcycle-only Dealers' plates work only on mopeds, motorcycles, and motor scooters.
Dealer License Cost
A Rhode Island Motor Vehicle Dealer's License is $303.50 a year per location, and the Leasing/Rental License is $103.50 a year. The $303.50 is higher than most states. Every other fee on this page is in the table.
| Fee | Amount |
|---|---|
| Motor Vehicle Dealer's License | $303.50 a year, per location$303.50 a year, each branch office |
| Franchise application (new-vehicle Dealers) | $303.50 a year |
| Motor Vehicle Auction Dealer's License | $303.50 a year |
| Motor Vehicle Leasing/Rental License | $103.50 first year$103.50 a year renewal |
| Dealer Bond | $500 a year at the base rate, after a credit check |
| Line of credit | $50,000 approved line, in the dealership's name; a qualification, not a fee |
| CPA-prepared financial statement | Your accountant's fee |
| BCI record check, per owner | Charged by the Attorney General's Office; the DMV forms list no amount |
| Out-of-state criminal record check | Set by that state's agency |
| Dealer plate insurance (GU-1338) | Priced by your insurer |
Dealer License Renewal
A Rhode Island Dealer License is valid for 3 years and expires December 31 (§31-5-7(b)). Every year of the term still requires a full renewal packet and the $303.50 payment per location. The statute sets the fee at $900 for 3 years, paid in $300 yearly installments, plus a $3.50 surcharge (§31-5-8(b)).
The Leasing/Rental License renews every year for $103.50, on a January 1 to December 31 license year.
Each year's Dealer's License packet includes:
- a new $50,000 bond and power of attorney
- a notarized Dealers' Line of Credit Affidavit, signed by a bank official
- an updated employee list, with the employee and runner authorization forms
- an updated sales tax permit, and a certificate of good standing for a corporation
- your active second-hand license, where the city or town requires one
- the $303.50 company check for each location
Common Questions
Can you get a Rhode Island Dealer License with a felony?
Yes. A felony isn't an automatic bar to a Rhode Island Dealer License. The dealer law lets the Board deny for unfitness (§31-5-11), and names no crime and no waiting period. Rhode Island's licensing law, §28-5.1-14, lets a conviction count only when the crime substantially relates to the business, and expunged convictions can't be used at all.
Can you get a Dealer License in Rhode Island without a lot?
No. A Rhode Island Motor Vehicle Dealer's License requires a building with at least 2,400 square feet of enclosed, heated floor space. It also needs a 2,400-square-foot outside display area, and both are used only for the dealership. Rhode Island has no wholesale license that skips the lot; the full list is under Office.
How many cars can you sell in Rhode Island without a Dealer License?
In Rhode Island, a Dealer License is required once you sell, or broker the sale of, more than 4 vehicles in one calendar year (§31-5-5). Four or fewer in a calendar year isn't treated as dealer activity under that section. The count runs by calendar year, not a rolling 12 months.
Do I need a business bank account for a Rhode Island Dealer License?
Rhode Island requires no business bank account. The New Dealership and Franchise applications do require an approved $50,000 line of credit from a financial institution, in the dealership's name. You reaffirm it every year at renewal with a notarized bank affidavit, and the New Dealership application also takes a CPA-prepared financial statement.
How long does a Rhode Island Dealer License take?
No Rhode Island law sets a deadline for the Board to decide on a Motor Vehicle Dealer's License (§31-5-6). A 30-day protest period runs first, then the hearing, then 30 days for you to send the closing documents. The Leasing/Rental License is different: it must be granted or refused within 30 days of the application (§31-5-34).
Does Rhode Island inspect your dealership before licensing?
No. Rhode Island sends no inspector to your lot before licensing. You submit 4 photographs of the premises with the application, and the Department and the Hearing Board review them (280-RICR-30-20-1 §1.7(A)). A used vehicle you sell at retail does need a new safety inspection, dated within 90 days or 500 miles of the sale, whichever comes first.
Do salespeople need their own license in Rhode Island?
No. Rhode Island issues no individual salesperson license; salespeople work under the Dealer's license. You report each salesperson's name to the Department immediately on hire, even on a trial basis (280-RICR-30-20-1 §1.6(L)). The application also asks how many salespeople you employ.
Support
The DMV's Dealers' License and Regulations Office in Cranston takes every application on this page. The Motor Vehicle Dealers License and Hearing Board votes on them. The Attorney General's Office issues the BCI check, and the Division of Taxation issues the sales tax permit.
| Contact | Detail |
|---|---|
| Department | Rhode Island Motor Vehicle Dealers License and Hearing BoardDMV Dealers' License and Regulations Office |
| Phone | (401) 462-5746 Dealers' License and Regulations Office(401) 462-5732 Licensing Aide, plate and license numbers(401) 462-9246 Financial Responsibility Office, GU-1338 filings(401) 274-4400 Attorney General, BCI checks |
| Fax | (401) 462-5789 |
| [email protected] | |
| Address | 600 New London AvenueCranston, RI 02920-3024 |
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.
- R.I. Gen. Laws Title 31, Chapter 5 — the dealer licensing law: the Board, the application, fees, the 3-year term, denial grounds, and the Leasing/Rental License
- §31-5-2.1, the Motor Vehicle Dealers License and Hearing Board — the 5 seats, who appoints them, and the appeal to Superior Court
- §31-5-8, license fees — the $300 fee per Dealer and per branch, and the $900 3-year fee paid in installments
- §31-5-7, license term — the 3-year term expiring December 31
- §31-5-16, court review — 20 days to appeal a Board order to Superior Court
- §12-1.3-4, effect of expungement — an applicant may state they were never convicted of an expunged crime
- §31-3-25, dealer plates — the 3-year color cycle for new-vehicle, used-vehicle, and transporter plates
