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All state guides Delaware dealer license

How to get a used car dealer license in Delaware

You request the application from the Delaware DMV Dealer Licensing section in Dover and apply for a dealer's license as a used vehicle dealer. Each owner needs a Delaware driver's license and 90 days of Delaware residency first, and the site needs display space for 5 vehicles.

  • Sourced to Delaware DMV
  • Checked October 2026
  • Free
License
Dealer's license (used vehicle dealer)
Surety bond
None, unless you finance sales
State fee
$100
Pre-license course
Confirm with the agency
Background check
Fingerprints + criminal history
License term
Expires Dec. 31, $50 renewal
What the state asks for

Delaware dealer license requirements

The figures a first-time used car dealer needs before applying to Delaware DMV. Each row shows how well it is supported.

Surety bond
None, unless you finance salesOfficial source

The dealer licensing chapter has no general dealer bond. A $25,000 surety bond applies if you finance your own sales (buy here pay here), due at application and renewal. Confirm with Dealer Licensing.

State license fee
$100Official source

DMV application fee, in effect since October 1, 2025. You also buy a Division of Revenue motor vehicle dealer business license at $100 a year, and dealer plates are $10 each.

Pre-license education
Confirm with Delaware DMVConfirm with the agency

The dealer statute and the DMV Dealership Manual list no pre-licensing course or exam. The application says owners must know the manual. Confirm when you request the packet.

Background check
Fingerprints + criminal historyOfficial source

Applicants submit fingerprints for a State Bureau of Identification criminal history report. The application asks for a history for every owner and officer, plus one from your last state if you moved within 2 years.

Insurance
Liability insurance requiredOfficial source

Proof of liability insurance goes in with the application and must cover every dealer plate issued to you. The statute requires coverage that meets Delaware's financial responsibility law, 21 Del. C. § 2118.

Business location
Office, 5-car display, 24 x 36 in. signOfficial source

An owned or leased place of business with zoning approval, sales and office space devoted to the dealership, display space for 5 or more vehicles, a business phone and a sign. DMV inspects it before approval.

License term and renewal
Expires Dec. 31, $50 renewalOfficial source

Licenses expire at midnight on December 31 and renew for $50. DMV denies renewal to a dealer that sold fewer than 5 vehicles in the calendar year unless it shows good cause in writing.

Sales allowed without a license
Fewer than 5 in 12 monthsOfficial source

You are a dealer if you buy, sell or exchange 5 or more vehicles in any 12-month period, or offer or display 5 or more for sale in that time.

Processing time
Not publishedConfirm with the agency

Delaware DMV does not publish a processing time for a new dealer application. All dealer applications are processed at the DMV administrative office in Dover.

“Official source” means the state agency’s own page, form or law. Where the state’s sources did not settle a point, the row says so instead of showing a guess.

Who issues the license

Delaware Division of Motor Vehicles, Dealer Licensing Section

License you apply for

Dealer's license (used vehicle dealer)

Official licensing page

The posted manual and form are older than two changes

The Dealership Manual (revised 03/2024) says DMV charges no license fee. House Bill 164 changed that on October 1, 2025: the application fee is $100 and renewal is $50. The manual also describes print-on-demand paper temporary tags, which Quick Tags replaced on September 14, 2026. The posted MV29 application is dated 9/21. Ask Dealer Licensing for the current packet.
Step by step

How to get a Delaware dealer license

The order that works for a first application. Tick each step off as you finish it.

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  1. Check the owner residency rule first

    The owner of a used vehicle dealership must have been issued a Delaware driver's license and been a Delaware resident for at least 90 days before applying. Only franchised and new vehicle dealers are exempt. Forming a Delaware company does not satisfy this. The applicant must also be at least 18.

    21 Del. C. § 6302(c)

  2. Ask DMV Dealer Licensing for the application

    Email DOTDealerLicensing@Delaware.gov for the current dealership application and ask which documents your business type needs. All dealer applications are processed at the DMV administrative office in Dover. Read the Dealership Manual, which owners are expected to know.

    Form MV29

  3. Register the name and buy the business license

    Register the business name with the Prothonotary's Office in your county, which charges a filing fee. Buy the Division of Revenue motor vehicle dealer business license for $100 a year and attach a copy of the receipt to the dealer application.

    Business license · $100 a year

  4. Set up a site that meets section 6303

    Get zoning approval for a location with office and sales space devoted to the dealership and room to display 5 or more vehicles. Install a phone listed in the business name and a sign of at least 24 x 36 inches. If the site is on a state-maintained road, get a DelDOT entrance permit. You cannot share the lot or office with another dealer.

    21 Del. C. § 6303

  5. Get criminal histories and insurance

    Book a criminal history appointment with the State Bureau of Identification in Dover for each owner and officer. If you have lived in Delaware less than 2 years, add a state certified history from your last state. Buy liability insurance that covers every dealer plate you want and get proof for the application.

    SBI · 302-739-2528

  6. File the notarized application with $100

    Submit the notarized application with two personal references, the lease, zoning approval, phone receipt, business license receipt, insurance proof and criminal histories. The state application fee is $100 and each dealer plate is $10. If you will finance your own sales, ask about the $25,000 surety bond.

    $100 application · $10 per plate

  7. Pass the DMV site inspection

    A Division agent must inspect the place of business before the application is approved. Dealer plates are issued only after approval. Applications that miss a requirement are returned for correction.

    Inspection before approval

  8. Enroll in Quick Tags before your first sale

    Since September 14, 2026, Delaware temporary tags are issued only through the online Quick Tags system. Name a Dealership Officer, register with the access code you receive, buy tag credits and order tag paper. You need a laser printer at the tag workstation. Each temporary tag costs $22.90.

    Quick Tags · $22.90 per tag

Practical advice

Settle the residency question before you spend money. If an owner has not held a Delaware driver's license and lived in the state for 90 days, wait or change the plan, because a Delaware LLC does not fix it. Then email Dealer Licensing for the current packet, since the posted manual is older than the 2025 fee law and the 2026 Quick Tags switch. Get zoning approval before you sign a lease.

Before you apply

Seven things to settle before any state application: the business, the owners, the money and the property.

Read the startup playbook
The lot and the office

Delaware dealer location requirements

What the state checks at the business address.

  • An established place of business that the dealership owns, rents or leases. A copy of the lease goes in with the application.
  • Local zoning approval, submitted with the application.
  • Sales and office space devoted to the dealership, with display space for 5 or more vehicles.
  • A telephone installed in the office and listed in the business name. A phone company receipt showing the name and number is accepted.
  • A sign on the premises of at least 24 x 36 inches showing the dealership's approved name.
  • No sharing of a lot, office or location with another dealer.
  • A DelDOT entrance permit if the business is on a state-maintained road, with a copy attached to the application.

Zoning comes first

A site that meets the state’s rules can still fail local zoning. Get written approval for vehicle sales from the city or county, and ask the landlord for a lease that depends on the license being issued, before you sign.
Once you are licensed

Keeping a Delaware dealer license

Renewal and ongoing duties

The license and dealer plates expire December 31. Renew by mid-December with the $50 fee, $10 per plate, your Revenue business license and insurance proof. You must sell at least 5 vehicles a year to renew. Keep records on the premises for 5 years, report each vehicle you take in for resale on form MV60, and tell DMV right away if the address, phone or owners change.

Federal rules that apply here too

  • The FTC Buyers Guide, posted on every used vehicle you offer for sale.
  • The FTC Safeguards Rule: a written plan for protecting customer financial information.
  • IRS Form 8300 when a customer pays more than $10,000 in cash.
  • A federal odometer disclosure on each transfer.
How each federal rule works
FAQ

Delaware dealer license FAQ

The questions first-time dealers ask most.

How do I get a used car dealer license in Delaware?

First make sure each owner has held a Delaware driver's license and lived in Delaware for 90 days. Email DOTDealerLicensing@Delaware.gov for the application, register the business name, buy the $100 Division of Revenue business license, and set up a zoned site with an office, a 24 x 36 inch sign and display space for 5 vehicles. File the notarized application with criminal histories, insurance proof and the $100 fee, then pass the DMV inspection.

How much is the dealer bond in Delaware?

Delaware's dealer licensing law does not require a general dealer bond. A $25,000 surety bond is required only if you finance your own sales, known as buy here pay here. Depending on how you finance, the bond is filed with the State Bank Commissioner or the Department of Finance. Ask DMV Dealer Licensing which rule applies to you.

How much does a Delaware dealer license cost?

The DMV application fee is $100, in effect since October 1, 2025, and dealer plates are $10 each. You also need a Division of Revenue motor vehicle dealer business license at $100 a year. Renewing the dealer license costs $50 a year. Insurance, the criminal history report and the trade name filing are extra.

Do I need a pre-licensing course in Delaware?

Delaware's dealer statute and the DMV Dealership Manual do not list a pre-licensing course or exam. The application does say owners must know the contents of the Dealership Manual. Confirm with DMV Dealer Licensing when you request the application.

Can I get a Delaware dealer license without a car lot?

Not as a retail dealer. You need an owned or leased place of business with zoning approval, office and sales space devoted to the dealership, and display space for 5 or more vehicles. Only a wholesale dealer may operate from a private residence without the display space and sign.

How many cars can I sell in Delaware without a dealer license?

Four in any 12-month period. Delaware defines a dealer as anyone in the business of buying, selling or exchanging 5 or more vehicles in a 12-month period, or who offers or displays 5 or more for sale in that time.

Sources

Checked October 2026. This is general information, not legal, tax or insurance advice. Fees, bond amounts and forms change, and local zoning rules vary. Confirm current requirements with Delaware DMV or your attorney before you sign a lease or pay a fee.

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