How to get a dealer license in Idaho

ITD says a dealer license is required when any person sells five or more vehicles or vessels that must be titled in a calendar year, even if they are titled in the seller's name. A license is also required to sell, display, exchange or consign a vehicle not titled in your name, to solicit such deals, or to display vehicles for sale on property the owner does not legally control. Idaho Code 49-105 defines a dealer as anyone in the business of buying, selling or exchanging five or more vehicles in a calendar year, or who has an established place of business for selling, leasing, trading or displaying vehicles.

• Dealer license (retail): Dealers who sell new or used vehicles to the public. Selling new vehicles needs a franchise approval letter from the manufacturer for each type of new vehicle sold. The bond is $20,000, or $10,000 for dealers selling only motorcycles, ATVs, UTVs, truck campers or snow machines.
• Wholesale dealer license: Dealers who sell used vehicles only to Idaho dealers. The bond is $40,000, there is no ICAR fee, and no display area is required (Idaho Code 49-1606(3)).
• Supplemental lot license: Extra locations of a dealership operating under the same name, in the same or an adjacent county. Temporary off-site supplemental lots are also licensed.
• Vehicle salesman license: Individuals who sell for a sponsoring dealer. Apply on ITD 3171; the license is valid for 3 years.
• Vehicle manufacturer license: Businesses that build or assemble vehicles at an established place of business in Idaho.
• Distributor, factory branch and representative licenses: Companies that distribute vehicles, parts and accessories to their franchised dealers, and the representatives who call on those dealers.

Surety bond. $20,000 for retail dealers, $40,000 for wholesale-only dealers and $10,000 for dealers selling motorcycles, ATVs, UTVs, truck campers or snow machines (Idaho Code 49-1608; ITD). The bond must come from a corporate surety licensed in Idaho and match the ownership, DBA names and location on the application. Cash or a certificate of deposit may be posted instead and stays on deposit until five years after the dealership goes out of business. Retail dealers also pay $300 into the Idaho Consumer Asset Recovery Fund (ICAR) at licensing and at each renewal. After three straight years with no bond lapses, bond claims or ICAR judgments, a dealer may choose to operate without a bond.

Insurance. Submit a liability insurance certificate (ACORD 25) with at least $25,000 bodily injury or death for one person, $50,000 for two people and $15,000 property damage. The certificate must say 'any auto' or state that it complies with Idaho Code 49-1608A.

Place of business. Idaho Code 49-117 requires a principal place of business that is an enclosed commercial building, open to the public at reasonable times, with an improved display area for at least 5 vehicles right next to it, zoned for the business. ITD requires a locking office with a desk, filing cabinet and a business phone listed in a directory; declared business hours when a licensed salesperson is present; and a permanent exterior sign readable from the main road (ITD recommends at least 24 square feet with 4-inch letters). A home may not be used unless the dealership is a separate building or a ground floor with its own entrance and no entrance to the residence. Records must be kept at the licensed location unless ITD gets 30 days' written notice. A Motor Vehicle Investigator inspects the location, display area, office and sign before licensing.

Background check. Each owner, partner, officer or director completes a personal history on ITD 3171, which asks about past license discipline and any felony conviction connected with a dealership. Idaho Code 49-1602(1), quoted on the form, lets ITD refuse a license to an applicant convicted of violating the dealer laws or rules. We found no fingerprinting requirement.

Pre-license education. Required (8 hours). Approved courses and details.

1. Call ITD Dealer Services (208-584-4343) to make sure your dealership name is available, and file any assumed business name with the Secretary of State.
2. Complete an 8-hour pre-licensing class and pass the closed-book test with an approved provider (used-only and wholesale-only dealers).
3. Set up an enclosed commercial location with a display area for 5 vehicles, a locking office, a listed phone, a permanent sign and zoning approval.
4. Get an Idaho seller's permit from the Idaho State Tax Commission and an EIN.
5. Buy a $20,000 dealer bond on the ITD bond form and liability insurance shown on an ACORD 25 certificate.
6. Submit ITD 3170 with notarized owner signatures, an ITD 3171 for each owner, the bond, the insurance certificate and $490 in fees ($190 license plus $300 ICAR).
7. Pass the Motor Vehicle Investigator's location inspection and declare your business hours.
8. Operate under the 90-day temporary license until the follow-up audit, then receive the permanent license.

Official forms:

• Application for Vehicle or Vessel Dealership License (includes the dealer bond form), ITD 3170
• Dealer Owner and Salesperson Application (personal history), ITD 3171
• Application for dealer plate (ITD 3635)
• Temporary supplemental lot application (ITD 3198)

Only as a wholesale-only dealer. A wholesale license, for selling used vehicles to Idaho dealers, does not need a display area, but it still needs an enclosed commercial office that meets the other principal place of business rules and a $40,000 bond.

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.

Yearly. Idaho has 12 licensing periods, and a license runs from the month it was issued through the end of the month before that month the next year. Renewal costs $175, plus the $300 ICAR fee for retail dealers. Used-only and wholesale-only dealers must first complete 4 hours of approved education, and every dealer must certify at least 5 sales in the prior licensing year (Idaho Code 49-1634). A renewal received more than 30 days late is processed as a new application.

This is general information, not legal advice. Rules and fees change, so confirm the details with the Idaho Transportation Department (ITD), Division of Motor Vehicles, Dealer Services 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 Idaho.