How to get a dealer license in District of Columbia

Under 16 DCMR 301.1, no one may do business as a dealer without a license. 16 DCMR 300.1 defines a dealer as anyone other than a salesman who, for pay, buys, sells or exchanges an interest in a motor vehicle (or offers or tries to), negotiates such a deal, or is engaged wholly or partly in the business of selling motor vehicles. People who sell vehicles they bought for their own use and actually used, in good faith, are excluded (16 DCMR 300.2(b)). No numeric sales threshold is published. Every dealership must also register with DC DMV, which is separate from the DLCP license.

• Motor Vehicle Dealer basic business license (DLCP): Businesses that sell motor vehicles, new or used. This is the main dealer license and needs a $25,000 bond.
• Used Car Lot basic business license (DLCP): Dealers that keep 5 or more vehicles outdoors on a lot, other than a lot used mainly to sell new vehicles. It is required on top of the Motor Vehicle Dealer license (16 DCMR 314.2). DLCP asks for a surveyor's plat for an outdoor lot, or a letter saying the cars are in an indoor facility.
• Used Car Seller license (DLCP, listed as 'Used Car Seller Only'): Appears to be for individual sellers: its requirements include an employer certification of sellers, a driver's license and a passport photo. 16 DCMR 314.6(f) says salesman licenses on an outdoor used car lot are designated 'Seller Only', except for a limited number of 'Buyer and Seller' licenses.
• DC DMV dealership registration: Every car dealership operating in DC. It is separate from the DLCP license, is needed for dealer tags and DMV dealer services, and expires each October 31.

Surety bond. DC Code 50-603(b)(2) requires every licensed motor vehicle dealer to keep a corporate surety bond of at least $25,000, and DLCP lists the $25,000 Motor Vehicle Dealer Bond as a requirement. DLCP says the bond must last for the two-year license period and may come from an authorized insurance carrier or surety company, or be posted as a cash bond with DLCP. A dealer that keeps 5 or more vehicles outdoors on a lot must also file an extra $100,000 bond (16 DCMR 314.4(a)). An older DC regulation, 16 DCMR 307.1, still shows a lower amount, but the DC Code and DLCP require $25,000.

Insurance. DC DMV requires dealership insurance before it issues dealer tags, with proof from your insurer showing coverage for the number of dealer tags you request. A lapse brings a fine of $150 for 1 to 30 days, plus $7 a day after 30 days up to $2,500, for each tag (DC Code 31-2413.01(b)(2)), and can lead to suspension or revocation of the dealership registration. DC DMV does not publish minimum limits for dealers.

Place of business. 16 DCMR 303.1(d) requires the dealer to do business at a place with a certificate of occupancy for that business, and DLCP lists the certificate of occupancy as a requirement. The DLCP pages and rules reviewed do not require a display lot for the Motor Vehicle Dealer license. Keeping 5 or more vehicles outdoors on a lot (other than a lot used mainly to sell new vehicles) also requires a Used Car Lot license. Under 16 DCMR 314, that lot must be in a C-M or M zone and have an office of at least 250 square feet in a permanent building with heat, electricity and a bathroom; a permanent sign showing the business name and hours; marked spaces at least 9 by 19 feet; paving; curbs, rails or fencing; landscaping on at least 5% of the paved area; and screening from homes next door. The lot must be open at least 30 hours a week, the dealer must be the only business license holder on it, and the books and records must be kept there.

Background check. DLCP requires a certified Police Criminal History Report, no more than 30 days old, from the jurisdiction where the person lives. DC residents get form PD-70 from the Metropolitan Police Department. All partners, or a corporation's president, vice president, secretary and treasurer, must provide one, and DLCP asks for court records on any conviction. 16 DCMR 303.1 also requires the applicant to be trustworthy and to intend to act as a bona fide dealer.

Pre-license education. The District of Columbia does not require a pre-license course for this license.

1. Register your corporation or LLC and any trade name with DLCP through CorpOnline, get an EIN, register with the Office of Tax and Revenue and get a Clean Hands certificate.
2. Get a certificate of occupancy from the DC Department of Buildings for a commercial location approved for the dealership.
3. Get a $25,000 Motor Vehicle Dealer Bond on the DLCP bond form from a surety, or post a cash bond with DLCP.
4. Gather a police criminal history report no more than 30 days old for each owner or officer, the salesperson designation letter, certified letters of authorization, and a sample car order and bill of sale.
5. Apply for the Motor Vehicle Dealer basic business license on BOSS (boss.dc.gov) and pay $99 for 2 years or $198 for 4 years.
6. If you will keep 5 or more vehicles outdoors, also apply for a Used Car Lot license and file the extra $100,000 bond.
7. Buy dealership insurance that covers the number of dealer tags you will request.
8. Register with DC DMV: submit the online application with your original business license and Clean Hands certificate, then print it, have it notarized and keep it.
9. Follow DC DMV's emailed instructions to finish registration and get dealer tags ($100 a year plus $75 per tag).

Official forms:

• Motor Vehicle Dealer Bond (fillable)
• Motor Vehicle Salesperson(s) Designation Letter (fillable)
• Basic business license application (online, BOSS)
• Police Criminal History Report (DC residents, from the Metropolitan Police Department), PD-70
• DC DMV dealership registration and renewal application (online)

Yes. The DLCP rules and pages reviewed do not require a display lot for the Motor Vehicle Dealer license, but you need a business location with a certificate of occupancy, and keeping 5 or more vehicles outdoors requires a Used Car Lot license, an extra $100,000 bond and a lot that meets 16 DCMR 314.

Dealer-only auctions sell only to licensed dealers, so you need the dealer license to buy there. AuctionACCESS (auctionaccess.com) limits membership to licensed, credentialed vehicle dealers and their authorized representatives.

The DLCP license runs 2 or 4 years and renews at the same price ($99 or $198). DLCP adds penalties if the license expires before it is renewed, and the bond must cover the whole license period. The DC DMV dealership registration expires every October 31. To renew it, upload the same documents with the online renewal application, print and notarize the application, and return all previously issued dealer tags (with police reports for any missing tags) before DMV issues new ones.

This is general information, not legal advice. Rules and fees change, so confirm the details with the DC Department of Licensing and Consumer Protection (DLCP) 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 the District of Columbia.