How to get a dealer license in Connecticut

Connecticut has no sales-count threshold. 'No person, firm or corporation may engage in the business of the buying, selling, offering for sale or brokerage of any motor vehicle' without a new car dealer's, used car dealer's or repairer's license (C.G.S. 14-52(a)). DMV says an out-of-state dealer license is not enough to sell in Connecticut, and dealing without a license is a class B misdemeanor (C.G.S. 14-52(d)).

• Used car dealer: Businesses that sell vehicles other than new and may also repair vehicles. $560 for a two-year license and a $60,000 bond.
• New car dealer: Sells new vehicles under a manufacturer's or importer's contract for each make, and may also sell used vehicles and do repairs. $700 for two years and a $60,000 bond.
• General repairer: Repair shops. $340 for two years and a $25,000 bond. Limited repairer licenses are no longer issued after January 1, 2024.
• Electric low speed dealer: Franchised dealers of electric low speed vehicles. $340 for two years and a $25,000 bond.
• Leasing or rental company: Leases or rents vehicles. $300 for a new license or two-year renewal, and a $15,000 bond if it leases for 30 days or more.
• Manufacturer: Manufacturers and distributors of vehicles sold in Connecticut. $2,300 for two years.
• Motor vehicle recycler (junkyard): Recycler yards, licensed through Form K-70. License fee $705.
• Auction permit: A licensed new or used car dealer needs this $20 permit to sell vehicles at auction, including wholesale dealer auctions.

Surety bond. New and used car dealers need a $60,000 surety bond on DMV Form K-158, in the exact business name and address shown on the K-7 application. Repairers and electric low speed dealers need $25,000, and leasing companies that lease for 30 days or more need $15,000 (Form K-36; C.G.S. 14-52). The bond runs to the State for customers' losses. DMV may require a larger bond if it is not satisfied with a used dealer applicant's finances, and it charges a $200 administrative fee if proof of bond renewal is late (C.G.S. 14-52).

Insurance. Each application needs an original Connecticut financial responsibility insurance certificate (Form R1325e) from your insurer showing how many dealer plates are insured, even if none (Form K-36). Dealers must furnish financial responsibility under C.G.S. 14-112, and DMV charges a $200 administrative fee if proof of a policy renewal is late (C.G.S. 14-58).

Place of business. A used car dealer needs an area to display used cars, a repair department that can hold at least two vehicles at once for repair or inspection, and a suitable office (Form K-36). Before you apply, the town's zoning enforcement official, building official and fire marshal must approve the location on the K-7 application (C.G.S. 14-54). You also need a site drawing (Form K-93), a waste oil tank of at least 250 gallons with a disposal letter from a registered transporter (an exemption can be requested), proper tools, and at least one qualified mechanic. Business hours must be posted on the customer entry door, and you must post the required signs (VIN etching cost, dealer conveyance fee, customer rights, labor and storage prices, and customer chooses repair shop). Records must be kept at the licensed location for 2 years. Each place of business needs its own application and $140 fee (C.G.S. 14-58).

Background check. Each applicant must be fingerprinted for state and national criminal history checks (C.G.S. 14-52a). DMV says to email [email protected] for a service code, pre-enroll in the Connecticut Criminal History Request System, pay the fee online, get fingerprinted at DESPP in Middletown or a local police department, and send proof of pre-enrollment with the application. All owners on the K-7 also submit the privacy rights form. DMV may refuse a license after a hearing for findings of odometer fraud or unlicensed operation, or convictions under dealer laws or for fraud, larceny or misappropriation, and it may not license a used dealer that owes sales tax (C.G.S. 14-52a). DMV also verifies applicants' prior experience (Form K-36).

Pre-license education. Connecticut does not require a pre-license course for this license.

1. Get a certificate of approval for your location from the town zoning enforcement official, building official and fire marshal in Section 3 of Form K-7 (C.G.S. 14-54).
2. Set up the site with a used car display area, a repair area for at least two vehicles, an office, a waste oil tank of at least 250 gallons, the required signs and at least one qualified mechanic, and prepare a site drawing under Form K-93.
3. Get a Connecticut sales tax permit, a trade name certificate if you use a business name, and, for an LLC or corporation, a Certificate of Existence and Form K-198.
4. Buy a $60,000 surety bond on Form K-158 and get an insurance certificate (Form R1325e) from your insurer.
5. Get a DMV service code, pre-enroll in the Connecticut Criminal History Request System and get fingerprinted. Each owner listed on the K-7 also submits the privacy rights form.
6. Send the notarized Form K-7, the License Inspection Application (Form K-8), photos, documents, the $140 application fee and the $560 license fee to the DMV Dealers and Repairers Licensing Unit, or book a Tuesday or Thursday appointment at 860-263-5056.
7. After DMV approves the license, pay $140 per dealer plate plus a $5 safety plate fee. Used dealers can request up to 3 plates at first.

Official forms:

• Procedure for Obtaining a Connecticut Automotive or Electric Low Speed Dealer or Repairer License (K-36)
• Application for Business License (K-7)
• License Inspection Application (K-8)
• Surety Bond, Motor Vehicle Dealer, Repairer or Leasing/Renting Company (K-158)
• License Application Drawing Specifications (K-93)
• Certificate of Filing, Etching of VIN (K-200)
• Certificate of Business Status and Agent for Service (K-198)
• Privacy rights form (for all owners listed on the K-7)

No. A Connecticut used car dealer needs a display area for used cars, a repair department for at least two vehicles and an office, approved by local zoning, building and fire officials, and DMV's application has no wholesale-only license type (Forms K-36 and K-7).

Selling at auction in Connecticut requires a new or used car dealer license plus a $20 DMV auction permit, and dealers with the permit may sell at wholesale dealer auctions (C.G.S. 14-65). AuctionACCESS (auctionaccess.com), which credentials buyers for over 400 auction marketplaces, limits membership to licensed vehicle dealers and their authorized representatives.

Licenses last two years on a staggered schedule. DMV sends a renewal application at least 45 days before expiration. File it with the $560 fee before the license expires, or you must stop doing business. A late renewal costs $100 more, and a license expired more than 45 days cannot be renewed (C.G.S. 14-52). Renewals are not handled by appointment. Keep your bond and insurance current, since late proof of renewal brings a $200 administrative fee (C.G.S. 14-52, 14-58).

This is general information, not legal advice. Rules and fees change, so confirm the details with the Connecticut Department of Motor Vehicles (DMV), Dealers and Repairers Licensing Unit before you apply. Last verified October 20, 2026.

Planning the business side too? Read how to start a car dealership. Used cars you offer for sale need an FTC Buyers Guide in the window. Selling your own car instead? See how to sell a car in Connecticut.