How to get a dealer license in Washington

DOL says that without a dealer license it is illegal to sell more than 4 vehicles registered to you in any 12 months, to buy and sell vehicles to make a profit, or to sell any vehicle that is not registered to you. Under RCW 46.70.021, buying and selling five or more vehicles in a 12-month period without a dealer license is a gross misdemeanor.

• Motor Vehicle Dealer: Businesses that buy or sell new or used cars, trucks and motor homes at retail or wholesale, including auctioneers selling titled vehicles. This is the main license covered here: $975, with a $30,000 bond.
• Manufactured Home/Travel Trailer Dealer: Businesses that sell mobile or manufactured homes, park trailers, travel trailers or tent trailers. $975, with a $30,000 bond.
• Miscellaneous Vehicle Dealer: Businesses that sell motorcycles, neighborhood electric vehicles and other vehicles that are not motor vehicles, mobile homes or travel trailers, such as off-road vehicles and utility, boat or horse trailers. $975, with a $5,000 bond.
• Recreational Vehicle Dealer: A dealer class for travel trailers, motor homes, truck campers and camping trailers (RCW 46.70.011). Selling new RVs requires a written agreement with the manufacturer.
• Wholesale Vehicle Dealer: Dealers who buy from or sell to other Washington licensed dealers only. DOL stopped issuing new wholesale licenses on July 1, 2017, and only licenses issued before June 30, 2012 can be renewed.
• Vehicle Dealer Sub-agency: Each added business location of a licensed dealer. $100 license, $25 renewal.
• Temporary Sub-agency: A licensed dealer's off-site sales event, such as an auto show or tent sale, for up to 10 days, with no more than six in 12 months. $100.
• Off-Road Vehicle Dealer and Snowmobile Dealer: Businesses that sell off-road vehicles (without a miscellaneous vehicle dealer license) or snowmobiles. $25 each.
• Vessel Dealer: Businesses that sell boats and other watercraft. $120 license, $60 renewal.
• Vehicle Manufacturer: Businesses that make or assemble new vehicles, or remanufacture used ones, for Washington dealers. $500.

Surety bond. Motor vehicle dealers and manufactured home/travel trailer dealers need a $30,000 bond, and miscellaneous vehicle dealers need $5,000 (RCW 46.70.070). Dealers must keep a bond for each business location in the state. Use DOL's Vehicle, Vessel, Vehicle Manufacturer, Registered Tow Truck Operator, or Wrecker Business Bond (DLR-430-205) or a bonding company's form. The principal name must exactly match the business owner and firm name, and the applicant and the surety's attorney-in-fact both sign it.

Insurance. We found no liability or garage insurance requirement for a dealer license in DOL's application materials or RCW 46.70.

Place of business. You need a permanent, enclosed commercial building on commercial property in Washington that meets building codes, zoning and land use rules. Retail dealers must keep office and display facilities there, though we found no minimum display size. You need a permanent exterior sign with the business name and type of business (such as auto sales) that can be seen from the main road, a working phone listed in directory assistance (a listed mobile number is fine), and your books and records on site. You must be open at least 10 a.m. to 4 p.m., five days a week, with the hours posted at the main entrance. Dealers who share a location must keep records, offices and inventory physically separate. You must own or lease the property for the license year, and a DOL dealer investigator inspects the site before the license is approved (RCW 46.70.023; DOL Dealer Checklist).

Background check. Each owner, partner, corporate officer or member completes a Personal/Criminal History Statement (REV 700 324). Applicants also file a Financial/Source of Funds Statement (DLR-430-206) with proof of assets, and DOL may request an Equifax credit report on each applicant. Under RCW 46.70.041, the application covers fingerprints if DOL requires them, convictions for crimes related to the business within the past 10 years, and civil judgments for fraud within the past 5 years.

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

1. If you will sell only used vehicles, complete at least 8 hours of approved dealer education and pass the test, through the Washington State Independent Automobile Dealers Association or the Independent Dealers Education Association.
2. Lease or buy a commercial site with an enclosed building, a permanent exterior sign and a listed phone, that meets local zoning, and plan to be open 10 a.m. to 4 p.m., five days a week.
3. Get a $30,000 surety bond on DOL's dealer business bond form (DLR-430-205) or a bonding company's form, in your exact business name.
4. Complete the Financial/Source of Funds Statement (DLR-430-206) and a Personal/Criminal History Statement (REV 700 324) for each owner, officer or member.
5. Apply online with the Department of Revenue's Business Licensing Service, or mail the Business License Application (BLS 700 028) and Vehicle Dealer/Manufacturer Addendum (700 182) with your documents and fees to BLS, PO Box 9034, Olympia, WA 98507-9034.
6. Pass the site inspection by a DOL dealer investigator.
7. Post your license at each location and use DOL's E-Permits system, which all retail dealers must use.

Official forms:

• Business License Application (BLS 700 028)
• Vehicle Dealer/Manufacturer Addendum (700 182)
• Instructions for Completing the Vehicle Dealer/Manufacturer Addendum (700-187)
• Vehicle-Related and Scrap Metal Business Fee Description Sheet (700-185)
• Personal/Criminal History Statement for Vehicle and/or Vessel Dealer (REV 700 324)
• Vehicle, Vessel, Vehicle Manufacturer, Registered Tow Truck Operator, or Wrecker Business Bond (DLR-430-205)
• Financial/Source of Funds Statement (DLR-430-206)
• Dealer Checklist (DLR-430-546)
• Dealer Temporary Sub-Agency License Application (DLR-430-513)

No. Every Washington dealer needs an established place of business in a permanent, enclosed commercial building, and retail dealers must keep office and display facilities there. Wholesale dealers needed only office facilities, but DOL stopped issuing new wholesale dealer licenses on July 1, 2017.

Dealer-only auctions require a dealer license to buy, and AuctionACCESS (auctionaccess.com), used at over 400 auction marketplaces and online channels in North America, limits membership to licensed vehicle dealers and their authorized representatives. In Washington, auctioneers who sell titled vehicles also need the motor vehicle dealer license.

The license lasts 12 months and is renewed each year for $325 plus plate and Business Licensing Service fees, online with the Department of Revenue or by mail using your renewal letter. Used vehicle dealers need a Certificate of Dealer Education showing at least 5 hours of approved training each year. If you do not renew within 30 days after the license expires, it is canceled and you must reapply and pay the original fee. DOL recertifies the place of business at least every 36 months.

This is general information, not legal advice. Rules and fees change, so confirm the details with the Washington State Department of Licensing (DOL) 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 Washington.