How to get a dealer license in Rhode Island

R.I. Gen. Laws § 31-5-5: 'Any person, firm, or corporation who sells or acts as a broker with respect to the sale of more than four (4) vehicles in any one calendar year shall be considered a motor vehicle dealer.' Selling or brokering 5 or more vehicles in a calendar year requires a dealer license.

• Used motor vehicle dealer: Sells used vehicles only. The business name must include 'Auto Sales.'
• New motor vehicle dealer (franchised): Sells new vehicles under a manufacturer franchise, subject to the notice and protest process in R.I. Gen. Laws § 31-5.1-4.2.
• New and used motor vehicle dealer: Sells both new franchised vehicles and used vehicles.
• Motorcycle, moped and scooter dealer: Sells only motorcycles, mopeds or scooters. Needs 1,200 square feet of space instead of 2,400.
• Auction dealer: Auctions motor vehicles to and for licensed motor vehicle dealers only, on a wholesale basis. Needs a 7,000 square foot building, $50,000 in assets and a $50,000 bond.
• Branch or annex license: Each additional dealership location needs its own license; an annex within 2 miles of the main location may get some requirements waived.
• Manufacturer, distributor or representative license: Vehicle manufacturers, distributors and their representatives (R.I. Gen. Laws §§ 31-5-21 and 31-5-22).
• Rental vehicle business: Businesses that rent vehicles (R.I. Gen. Laws § 31-5-33).

Surety bond. Regulation 280-RICR-30-20-1 § 1.6(O) requires a $50,000 bond for all motor vehicle dealers, payable to the Department, filed each year with the renewal and in effect through December 31. The application says the bond must be notarized and issued in the dealership's D/B/A name. Auction dealers also need a $50,000 bond. R.I. Gen. Laws § 31-23.2-12, part of the odometer tampering law, sets a lower minimum for the dealer bond and requires it to be renewed every year and kept in effect for 2 years after a dealer goes out of business.

Insurance. Before the license is issued, a GU-1338 insurance filing for the dealer plates must be made with the DMV Financial Responsibility Office (401-462-9246). No minimum coverage amount is stated in the application or regulation.

Place of business. Regulation 280-RICR-30-20-1 § 1.6 requires one building with at least 2,400 square feet of enclosed, heated space with an office and repair or service space (another 2,400 square feet with a body shop license), plus at least 2,400 square feet of outdoor display lot, used only for the dealership. Motorcycle, moped and scooter only dealers need 1,200 square feet. The dealer needs a deed or a lease of at least 1 year, zoning approval or a city or town license, a service and repair shop with tools, a sign of at least 24 square feet (or the zoning maximum), and a business phone. The dealership must be a full-time business open normal business hours, not a sideline, and gas stations must remove their pumps. The dealer must own the vehicles it sells, may not sell on consignment, and may sell only from the licensed location. The application asks for 4 photos of the site.

Background check. Each owner, partner and officer needs a BCI criminal record check from the Rhode Island Attorney General's Office (150 South Main Street, Providence, 401-274-4400). Non-residents and anyone who moved to Rhode Island within the last 5 years also need a check from their prior state.

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

1. Get your dealership name and location approved by the Dealers' License and Regulations Office; used dealer names must include 'Auto Sales.'
2. Secure a site that meets 280-RICR-30-20-1: a 2,400 square foot building with office and service space, a 2,400 square foot display lot, a deed or 1-year lease, and zoning approval or a city or town license.
3. Get a $50,000 surety bond in the dealership's D/B/A name, an approved $50,000 line of credit in the dealership's name, and a CPA financial statement.
4. Get a BCI check from the Attorney General's Office for each owner, partner and officer.
5. Submit the signed and notarized New Dealership application with 4 photos, corporate documents and employee forms.
6. Attend your hearing before the Dealers' Hearing Board after the DMV investigates the application.
7. Within 30 days of approval, get a Division of Taxation sales tax permit, put up a 24 square foot sign, set up a business phone, make the GU-1338 dealer plate insurance filing, get your bill of sale form approved and pay the $302.50 license fee.
8. Book an appointment with the Licensing Aide (401-462-5732) to finalize the license and dealer plates.

Official forms:

• New Dealership application (rev. 07/2020)

No. Every Rhode Island motor vehicle dealer needs at least 2,400 square feet of outdoor display lot plus a 2,400 square foot building, and we found no wholesale-only dealer license.

Rhode Island auction dealers may auction vehicles only to and for licensed motor vehicle dealers on a wholesale basis, so you need a dealer license to buy there. AuctionACCESS (auctionaccess.com), which provides credentialing for over 400 auction marketplaces and online channels across North America, limits membership to licensed vehicle dealers and their authorized representatives.

Licenses are renewed every 3 years under R.I. Gen. Laws § 31-5-7, with the fee paid at $300 a year. The $50,000 bond is filed again every year with the renewal and must run through December 31.

This is general information, not legal advice. Rules and fees change, so confirm the details with the Rhode Island Division of Motor Vehicles, Dealers' License and Regulations Office 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 Rhode Island.