How to get a dealer license in Delaware

Buying, selling or exchanging 5 or more vehicles in any 12-month period, or offering to sell, selling, displaying or permitting the display for sale of 5 or more vehicles within a 12-month period (21 Del. C. § 6301).

• Used vehicle dealer: Retail dealers selling used vehicles to the public, other dealers and licensed auctions. This is the main license covered here. Used dealers must title new vehicles into the dealership name and cannot transfer a Certificate of Origin.
• New vehicle dealer (franchised): Dealers selling new vehicles under a franchise agreement or a manufacturer letter. Exempt from the 90-day Delaware residency rule.
• Wholesale dealer: Dealers who sell only to other dealers or through licensed auto auctions. May operate from a private residence, cannot sell to the public or issue temporary tags, and need an extra $75 Division of Revenue wholesale license.
• Auction: Businesses that conduct vehicle auctions at an approved location. They may issue 30-day temporary plates to buyers with a valid driver's license.
• Motorcycle, trailer, mobile home, recreational vehicle, new truck and new equipment dealers: Dealer classifications for those vehicle types listed in DMV's Dealership Manual.
• Recycler: Vehicle recyclers, licensed by DMV under 21 Del. C. Chapter 75.

Surety bond. No bond required for a standard used or new dealer license. A dealer that self-finances retail sales without charging interest, and is not bonded with the Banking Commissioner under Title 5, Chapter 29, must file a $25,000 surety bond with the Department of Finance (30 Del. C. § 3005(b)). DMV's renewal package asks Buy Here Pay Here dealers for a surety bond at application and renewal.

Insurance. Adequate liability insurance as required by 21 Del. C. § 2118 (21 Del. C. § 6303(a)(4)). Proof must be submitted with the application, and the insurance must cover all dealer plates issued to the dealership.

Place of business. An established place of business owned, rented or leased by the dealership (21 Del. C. § 6303). It must meet local zoning, with zoning approval submitted with the application. It needs sales and office space devoted to the dealership, display space for 5 or more vehicles, a telephone listed in the business name, liability insurance, a sign of at least 24 x 36 inches with the approved name, a computer and laser printer for print-on-demand temporary tags, and proof of occupancy. A dealer may not share a lot, office or location with another dealer. A DelDOT entrance permit is needed on a state-maintained road. DMV inspects the location before approval, and records stay on site for 5 years.

Background check. Applicants submit fingerprints for a State Bureau of Identification criminal history report, and again at renewal if more than 5 years have passed since original licensure (21 Del. C. § 6302(e)). A felony conviction can be waived only after more than 10 years, and a misdemeanor involving theft, fraud, dishonesty or moral turpitude only after more than 5 years. For a waiver, the applicant also cannot be incarcerated, on work release, probation or parole, or serving a suspended sentence (§ 6313). The owner must be 18 or older and, except for franchised and new vehicle dealers, must have held a Delaware driver's license and Delaware residency for at least 90 days.

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

1. Check that the owner is 18 or older and has held a Delaware driver's license and Delaware residency for at least 90 days (not required for franchised or new vehicle dealers).
2. Register the business name with the Prothonotary's Office in your county.
3. Set up a place of business with zoning approval, office space, display space for 5 or more vehicles, a listed business phone, a 24 x 36 inch sign, and a computer and laser printer for temporary tags.
4. Get liability insurance that covers your dealer plates and a Division of Revenue motor vehicle dealer business license ($100 per year).
5. Request the dealership application from [email protected] and submit it with the $100 application fee and required documents.
6. Submit fingerprints for a State Bureau of Identification criminal history check.
7. Pass DMV's inspection of your place of business.
8. After approval, order dealer plates at $10 per plate per year.

Official forms:

• Delaware Dealership Manual
• Dealership renewal package (Franchise, Used, Wholesale and Auction), DLR-1702, DLR-1703
• Signature Authorization Form (DLR-1708)
• Dealer Disclosure Statement of Title Brand (MV724)

Only as a wholesale dealer. A Delaware wholesale dealer may operate from a private residence without the display space and sign requirements, but may sell only to other dealers or through licensed auto auctions (21 Del. C. § 6307). Retail dealers need display space for 5 or more vehicles.

Delaware wholesale dealers may sell only to other dealers or through licensed auto auctions, and dealer-only auctions sell to licensed dealers, so you need a dealer license to buy there. AuctionACCESS (auctionaccess.com), which handles dealer registration for over 400 auction marketplaces, limits membership to licensed vehicle dealers and their authorized representatives.

Dealer licenses expire at midnight on December 31 (21 Del. C. § 6304). Download the renewal package from DMV's dealer page, since renewals are not mailed, and submit it before December 31. The renewal fee is $50 per year, for one or two years. You must have sold at least 5 vehicles that calendar year unless the Director allows otherwise for good cause. Renewals are not accepted after February 15; after that you must reapply.

This is general information, not legal advice. Rules and fees change, so confirm the details with the Delaware Division of Motor Vehicles, Dealer Licensing 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 Delaware.