To apply, you must:
9 Washington Dealer License Requirements
Washington Dealer Licenses are issued as Business License endorsements by the Department of Revenue's Business Licensing Service and regulated by the Department of Licensing. This page covers Washington's 5 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. Washington's Business License Application accepts a sole proprietorship, partnership, LLC, corporation, nonprofit corporation, limited partnership, LLP, LLLP, joint venture, association, trust, municipality, or tribal government.
An LLC keeps your business separate from your personal life and adds trust to the name. An LLC, corporation, or limited partnership also files with the Washington Secretary of State. The application asks where and when it was formed.
Start as an LLC or corporation, because forming one later requires a new application and the full original fee. With an LLC or corporation, you can add a member or officer and keep your license; they file a Personal/Criminal History Statement within 10 days. Selling 51% or more of an LLC or partnership means a new application.
Choose your Dealer License Type
Washington issues 5 main Dealer License types as endorsements on one state Business License, and most people start with the Motor Vehicle Dealer endorsement. Washington no longer issues a wholesale-only license; the Motor Vehicle Dealer endorsement already allows wholesale sales. Boat Dealers use a separate Vessel Dealer endorsement, which this page doesn't cover.
| License Type | What It Lets You Do |
|---|---|
| Motor Vehicle DealerEndorsement 220. The type most people start with | Buy and sell cars, trucks, and motor homes, new or used, to the public, to other Dealers, and at the dealer auctions. Motorcycles, trailers, and manufactured homes need their own endorsement |
| Manufactured Home/Travel-Trailer DealerEndorsement 227 | Sell manufactured homes, park trailers, travel trailers, and fifth-wheel and tent trailers |
| Miscellaneous Vehicle DealerEndorsement 238 | Sell motorcycles, neighborhood electric vehicles, off-road vehicles, and utility, boat, and horse trailers: any vehicle that isn't a motor vehicle, manufactured home, or travel trailer |
| Off-Road Vehicle DealerEndorsement 230 | Sell off-road vehicles. No bond required |
| Snowmobile DealerEndorsement 232 | Sell snowmobiles. No bond required |
Get your Dealer Bond (Surety Bond)
A Washington Motor Vehicle Dealer License requires a $30,000 bond, filed with the Department of Licensing before the license is issued (RCW 46.70.070). The bond protects customers if you break Washington's dealer laws. A $30,000 Dealer Bond costs only $300 a year at the base rate, after a credit check.
The Manufactured Home/Travel-Trailer Dealer bond is also $30,000, and the Miscellaneous Vehicle Dealer bond is $5,000. The bond is continuous, one per business location, and it covers that location's temporary subagencies. If the surety cancels it, or claims use up its full amount, the license cancels with it.
| License Type | You Pay | Bond Amount |
|---|---|---|
| Motor Vehicle DealerWashington - Motor Vehicle Dealer ($30,000) | $300/yearabout $25 a month | $30,000 |
| Off-Road Vehicle Dealer | No Bond Required | |
| Snowmobile Dealer | No Bond Required | |
Set up your Dealer Office (Established Place of Business)
A Washington Motor Vehicle Dealer License requires an established place of business: “a permanent, enclosed commercial building located within the state of Washington easily accessible at all reasonable times” (RCW 46.70.023). The same rule applies to the Manufactured Home/Travel-Trailer and Miscellaneous Vehicle Dealer endorsements, and the table below is that standard.
A second used-vehicle lot in the same city block, directly across the street, or within sight of your office needs no subagency license. It must be zoned properly and covered by your bond.
| What Washington Requires | |
|---|---|
| Building | A permanent, enclosed commercial building in Washington, run in compliance with building codes, zoning, and land-use ordinances. Open to the public at reasonable times, with your books and records kept there |
| Home | A room in a hotel, apartment building, or house doesn't qualify, unless the ground floor is mainly commercial and your office is on that floor |
| Hours | 10:00 a.m. to 4:00 p.m., at least 5 days a week, posted at the main entrance. If you're closed during those hours, a sign says when you'll be back and how to reach you |
| Sign | The business name and the nature of the business, such as auto sales, affixed so it can only be removed with tools. Letters “clearly visible to the major avenue of traffic.” No minimum size is published |
| Size | No minimum square footage, display-vehicle count, or parking count is published |
| Property | You own or lease the property for the whole license year, and tell the Department when that changes |
| Shared location | 2 or more Dealers at one address keep their records, office space, and inventory physically separated and clearly marked |
| Zoning | Self-certified. Confirming zoning with your city or county is your responsibility, and the Department may ask for evidence |
Complete the Dealer Education Course (Approved Education Program)
A Washington Motor Vehicle Dealer License requires 8 hours of approved education and a passing test before you submit the application (RCW 46.70.079). The test comes at the end of the course, and the provider issues your certificate. The Department of Licensing runs no separate exam.
- The Department approves each provider and course. Its Get your license page names 2 trainers: the Washington State Independent Automobile Dealers Association and the Independent Dealers Education Association
- The state sets no price; the provider does
- To renew each year, a company principal or managing employee completes 5 hours of continuing education
- Exempt by law: franchised dealers of new recreational vehicles, nationally franchised or corporate-owned rental companies, and manufactured dwelling dealers. Also exempt: national auction companies that also hold a wrecker license, and wholesale auto auction companies. Franchised new motor vehicle dealers are deemed to have met it
Pass the Background Check (Personal/Criminal History Statement)
Every owner, partner, corporate officer, and member/manager on a Washington Dealer License application completes the Personal/Criminal History Statement (Form 700-324). It asks 2 questions about the last 5 years. One is any action against a professional license. The other is a conviction or no-contest plea to a gross misdemeanor or felony, not counting traffic offenses.
Signing it authorizes the Department of Licensing to investigate your criminal history, financial records, and credit history. The Department may also request an Equifax credit report. Fingerprints aren't part of the standard packet; the law lets the Department ask for them.
If you have a record
- Denial is discretionary, not automatic. The Director may deny a license for a crime that “directly relates to the business of a vehicle dealer,” and only when denial is in the public interest
- The 10-year clock runs from the adjudication. That means the conviction, guilty plea, or finding of guilt, even with a deferred sentence. A pending charge doesn't count
- You disclose the last 5 years. Gross misdemeanors and felonies only; ordinary misdemeanors and traffic offenses aren't asked about
- A vacated conviction can be answered as none. Washington law says a person whose conviction is vacated “may state that he or she has never been convicted of that crime” (RCW 9.96.060; RCW 9.94A.640 for felonies)
- A Certificate of Restoration of Opportunity protects you. With one, the Department can't deny you solely for your criminal history (RCW 9.97.020)
- You can appeal. Request a hearing within 15 days of the denial notice; no final denial is entered without notice and the chance for a hearing
Submit your Dealer License Application
You apply online through the Department of Revenue's Business Licensing Service at dor.wa.gov/businesslicense, or by mail on the Business License Application (BLS 700-028). The Motor Vehicle Dealer endorsement is $975, plus a $50 processing fee to open a new business account. Every fee is itemized under costs.
The Vehicle Dealer/Manufacturer Addendum goes in with it. Financial condition takes 1 of 4 things: a bank reference, a letter of credit from the last 60 days, a flooring agreement, or a line of credit. An LLC, corporation, or partnership needs a federal EIN; only a sole proprietor with no employees can apply on an SSN alone.
Pass the Site Inspection
A Washington Dealer License location is inspected after you submit a complete application, not before. The Dealer Checklist says: “After you have submitted a complete application, a dealer investigator will contact you to schedule a required inspection of your business site.” Once licensed, a Department representative recertifies your place of business at least once every 36 months.
Get your Dealer License Plates
A Washington Motor Vehicle, Manufactured Home/Travel-Trailer, or Miscellaneous Vehicle Dealer gets up to 3 dealer license plates (RCW 46.70.090). Past 3, the cap is 6% of the vehicles you sold in the last license year, rounded up; a new Dealer estimates first-year sales. Off-Road and Snowmobile Dealers order as many as they need. A standard set is $50.75.
Dealer tags let you drive your inventory. You, your partners, corporate or LLC officers, their spouses, and your employees can drive on them. The vehicle must genuinely be for sale, and the driver carries a vehicle dealer identification card.
A customer can test-drive alone on a 72-hour demonstration permit. They also cover trips to and from repair, an exhibition in the state of up to 20 days, and your tools and parts up to 500 pounds. Temporary permits go through the state's E-Permits system, which every Dealer endorsement on this page must use.
Dealer License Cost
A Washington Motor Vehicle Dealer License costs $975 to apply, and that is higher than most states. Renewal is $325 a year. Every other fee on this page is in the table.
| Fee | Amount |
|---|---|
| License fee | $975 Motor Vehicle, Manufactured Home/Travel-Trailer, or Miscellaneous Vehicle Dealer$25 Off-Road Vehicle or Snowmobile Dealer |
| License renewal, every year | $325 Motor Vehicle, Manufactured Home/Travel-Trailer, or Miscellaneous Vehicle Dealer$25 Off-Road Vehicle or Snowmobile Dealer |
| Business License Application processing feePaid to the Business Licensing Service with the application | $50 to open a new business$10 to add the endorsement to an existing business$0 to add a location |
| SubagencyAn additional sales location | $100 original$25 renewal |
| Temporary subagencyAn off-site event such as a show or tent sale, up to 10 days, up to 6 in any 12 months | $100, no renewal |
| Dealer Bond | $300 a year, $30,000 bond, credit check required (Motor Vehicle Dealer)$5,000 bond (Miscellaneous Vehicle Dealer) |
| Dealer education course | Priced by the provider; 8 hours to start, 5 hours a year to renew |
| Dealer plates | $50.75 per standard set, $38.75 renewal, $20.75 replacement$44.75 motorcycle plate, $38.75 renewal, $14.75 replacement$4 off-road or snowmobile plate, original, renewal, or replacement$9.25 to replace a plate tab |
| Business structure changeA new application, such as a sole proprietor forming an LLC | $975 |
| Address change | $25 per endorsement |
| Name change | No fee |
| Personal/Criminal History Statement | No fee |
Dealer License Renewal
A Washington Dealer License is valid for 12 months from the date it's issued, and your dealer plates expire on the same date (RCW 46.70.083). The Department can assign you a staggered renewal date without changing the 12-month term. Renewal is $325 for the Motor Vehicle Dealer endorsement, plus $38.75 per set of plates.
Before you renew, a company principal or managing employee completes 5 hours of continuing education. The renewal application also reports your vehicle sales for the year and any material change from your original application.
Common Questions
Can you get a Washington Dealer License with a felony?
Yes. A felony isn't an automatic bar to a Washington Dealer License. The Director may deny for a crime that “directly relates to the business of a vehicle dealer” within 10 years of the conviction, and only in the public interest (RCW 46.70.101). A Certificate of Restoration of Opportunity stops a denial based solely on your record.
Can you get a Dealer License in Washington without a lot?
In most cases, no. A Washington Motor Vehicle Dealer License requires a permanent, enclosed commercial building; the Department's own sheet says “in most cases you cannot sell vehicles from your home” (DLR-430-038). No lot size or display count is published. A home qualifies only when its ground floor is mainly commercial, or the Director grants a written waiver.
How many cars can you sell in Washington without a Dealer License?
Washington sets no fixed number: a Dealer License is required once you're “engaged in the business” of buying and selling vehicles (RCW 46.70.021). State law specifically names buying and selling 5 or more vehicles in a 12-month period as dealer activity. An isolated sale of a vehicle titled in your own name needs no license.
Does Washington have a wholesale Dealer License?
No, not one you can apply for. The Department of Licensing stopped issuing new Wholesale Vehicle Dealer licenses in 2017, and most renewals in 2018 (RCW 46.70.055). The Motor Vehicle Dealer endorsement already allows wholesale sales, so it's the one you use at the dealer auctions.
How much is a Dealer License in Washington State?
A Washington Motor Vehicle Dealer License is $975 to apply and $325 a year to renew (Department of Licensing fee page). Add the $50 Business Licensing Service fee for a new business, about $300 a year for the $30,000 bond, and $50.75 for your first set of dealer plates. Every fee is in the cost table.
How long does a Washington Dealer License take?
No Washington law sets a deadline for the decision. The Business Licensing Service's own estimate is 10 business days online, or up to 3 weeks by paper (Business License Application, BLS 700-028). A state endorsement like this one can add 2 to 3 weeks. The site inspection is scheduled once your application is complete.
Does Washington require insurance for a Dealer License?
No. Washington requires no insurance to hold a Dealer License; the $30,000 bond is the only financial-security instrument in the application packet (Dealer Checklist). Ordinary vehicle liability insurance for driving on public roads is separate road law, not a licensing requirement.
Do I need a business bank account?
No. Washington requires no dedicated business bank account. Financial condition takes any 1 of 4: a bank reference, a letter of credit from the last 60 days, a flooring agreement, or a line of credit (WAC 308-66-120). The Business License Application asks for your bank's name, and nothing about a dealer account.
Support
The Department of Licensing's Dealer Services regulates every endorsement on this page. The Business Licensing Service takes the application and the fee, and prints the license.
| Contact | Detail |
|---|---|
| Department | Washington State Department of Licensing, Dealer ServicesDepartment of Revenue, Business Licensing Service |
| Phone | (360) 664-6466 Dealer Services(360) 664-6475 Central Intake, for site requirement questions1-800-451-7985 Business Licensing Service |
| [email protected] | |
| Address | Business Licensing ServicePO Box 9034Olympia, WA 98507-9034 |
Additional sources (12)
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.
- RCW 46.70.070, the bond — the $30,000 and $5,000 bond amounts, one bond for several classifications, and what cancels the license
- RCW 46.70.079, education — the 8-hour course and test, the 5 hours a year to renew, and the exemption list
- RCW 46.70.061, fees — the $975 license fee, the $325 renewal, and the cancellation 30 days after expiration
- RCW 46.70.083, license term — the 12-month term and the recertification of the place of business every 36 months
- RCW 46.70.090, dealer plates — the 3 plates, the 6% formula, and the sales and service agreement for new vehicles
- RCW 46.70.011, definitions — the license classifications, the retail dealer definition that includes wholesale, and who is not a vehicle dealer
- RCW 46.70.102, hearings — the 15-day window to request a hearing on a denial
- WAC 308-66, the dealer rules — financial condition, the office rule, the plate formula, the course curriculum, and business-structure changes
- RCW 9.97.020, Certificate of Restoration of Opportunity — the bar on denying a license solely for criminal history
- RCW 9.94A.640, vacating a felony conviction — the eligibility gates and the effect of a vacated felony
- RCW 9.96.060, vacating a misdemeanor conviction — the same for misdemeanors and gross misdemeanors
- Vehicle-Related and Scrap Metal Business Fee Description Sheet (BLS 700-185) — the endorsement codes and what each one covers
