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All state guides Hawaii dealer license

How to get a used car dealer license in Hawaii

You apply to Hawaii's Motor Vehicle Industry Licensing Board for a used motor vehicle dealer license that is valid only in the county you name. The defining requirement is a $50,000 inventory or flooring line of credit. A surety bond is accepted only when the board agrees that credit cannot reasonably be obtained.

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  • Checked October 2026
  • Free
License
Used motor vehicle dealer license
Surety bond
$50,000 credit line or $25,000 bond
State fee
$588 Honolulu, $393 other islands
Pre-license course
None required
Background check
Conviction disclosure, no prints
License term
Expires June 30, even years
What the state asks for

Hawaii dealer license requirements

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

Surety bond
$50,000 credit line or $25,000 bondOfficial source

The standard requirement is a $50,000 inventory or flooring line of credit. If you cannot reasonably get one, the board may accept a bond: $25,000 if you sell under 60 vehicles a month, $100,000 at 60 or more.

State license fee
$588 Honolulu, $393 other islandsOfficial source

Total due when you file from July 1 of an even year through June 30 of an odd year. In the other half of the cycle it is $319 in Honolulu and $221 on the neighbor islands. $50 of each total is a nonrefundable application fee.

Pre-license education
None requiredOfficial source

The board's requirements sheet and checklist for a dealer license list no pre-licensing course and no exam. What the board tests is your premises, your financing and your financial statement.

Background check
Conviction disclosure, no printsOfficial source

The application asks about convictions and license discipline for every owner, officer, partner, manager and member. A yes answer means a signed statement, court papers and a Hawaii criminal history record check.

Insurance
Confirm with MVILBConfirm with the agency

The board's application checklist does not ask for an insurance certificate. Ask the board and your insurer what liability coverage applies to your inventory and test drives before you open.

Business location
Office, restroom, 3 display stallsOfficial source

A site used mainly for vehicle sales, with a permanent building, restrooms, an office you do not share, and a showroom or at least 3 display stalls. The lease must run at least 1 year from the day you file.

License term and renewal
Expires June 30, even yearsOfficial source

Every license expires June 30 of each even-numbered year, whatever its issue date. There is no late renewal. If you miss the date you file a new application with all documents and fees.

Sales allowed without a license
2 per calendar yearOfficial source

State law treats anyone who sells three or more vehicles in a calendar year as a dealer. Selling fewer still needs a license if you are in the business of selling vehicles.

Processing time
15 to 20 business daysOfficial source

The board asks you to allow 15 to 20 business days once a complete application is in. A yes answer to the discipline or conviction questions sends the file to a board meeting first.

“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

Hawaii Department of Commerce and Consumer Affairs, Motor Vehicle Industry Licensing Board

License you apply for

Used motor vehicle dealer license

Official licensing page

The bond is a fallback, not a choice

Do not budget for a bond alone. Hawaii law requires a $50,000 inventory or flooring line of credit, and the board may accept a bond only when that credit cannot reasonably be obtained. The fee also changes with your filing date and island: $588 or $319 in Honolulu, $393 or $221 on the neighbor islands. Check the current application packet for the column that applies to you.
Step by step

How to get a Hawaii dealer license

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

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  1. Line up the $50,000 inventory line of credit

    Ask a federally insured bank, or a lender with a net worth of at least $50 million, for a $50,000 inventory or flooring line of credit. You need the lender's letter stating that the line is inventory or flooring credit, plus the UCC-1 or security agreement filed at the Bureau of Conveyances. If credit cannot reasonably be obtained, the board may accept a surety bond instead.

    HRS 437-7(d)

  2. Register the business with BREG

    Form the entity with the DCCA Business Registration Division and register any trade name. A corporation, partnership, LLC or LLP attaches a file-stamped filing or a current Certificate of Good Standing. Keep the applicant name identical on the lease, the financial statement and the application.

    DCCA Business Registration Division

  3. Secure the premises and check county zoning

    Lease or buy a site with a permanent building, restrooms, an office of your own, and a showroom or 3 display stalls. The lease must run at least 1 year from the day you file and state vehicle sales as the use. Call the county planning department about zoning, because you certify on the application that the site is zoned for dealer activity.

    HRS 437-11

  4. Get an accountant-prepared financial statement

    Have a public accountant or CPA with a current permit to practice prepare and sign a financial statement that is no more than 1 year old. A sole proprietor files a personal statement. A partnership files one for the partnership and one for each general partner. The name on it must match the application.

    Not more than 1 year old

  5. Prepare the self-inspection report and photos

    Write a description of the premises and draw a site plan with measurements that shows the buildings, office, restrooms, and showroom or display stalls. Add clear, labeled photos on separate 8.5 by 11 inch sheets: the office inside and out, the restrooms, the display area, and a front view that includes the driveway.

    Site plan, description, photos

  6. Add a salesperson application if you are an entity

    A corporation, LLC or LLP must include at least one salesperson application, or a Certificate of License Transfer for someone already licensed, with the dealer application. Sole proprietors and partnerships are exempt. A salesperson may work for only one dealer at a time.

    At least 1 salesperson

  7. File the application and fee with the board

    Mail or deliver the application, exhibits and a check payable to Commerce and Consumer Affairs to the board in Honolulu. A used dealer pays $588 in Honolulu or $393 on a neighbor island when filing from July 1 of an even year through June 30 of an odd year, and $319 or $221 in the other half of the cycle.

    Application for License (MOVE-02)

  8. Wait for the license before you sell

    Allow 15 to 20 business days for a complete application. A yes answer to the discipline or conviction questions sends your file to a board meeting. An application not completed within 1 year of filing is treated as abandoned. The license covers only the county named on it.

    15 to 20 business days

Practical advice

Treat the line of credit as your first gate. Ask the lender whether its letter will use the words inventory or flooring and who files the UCC-1, because a general business loan does not match the board's wording. If you expect to rely on the bond, ask the board what it wants to see before you buy one. Check your filing date too: a license issued shortly before June 30 of an even year still expires on that date.

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

Hawaii dealer location requirements

What the state checks at the business address.

  • A site used primarily to sell, display or deal in motor vehicles, in a location your county has zoned for dealer activity.
  • A permanent building with a showroom, or at least 3 display stalls sized for vehicles with an average 90-inch wheelbase.
  • Restrooms on the site. The board calls these sanitation facilities and wants them on your site plan and in your photos.
  • An office of your own. Sharing office space with another business is prohibited, and confidential files must sit in a secured office.
  • On shared premises, display stalls and office areas clearly marked with the applicant's name so buyers know which dealer they are dealing with.
  • A signed lease or rental agreement running at least 1 year from the filing date, naming vehicle sales as the use, in the applicant's exact name and address.
  • A trailer or portable office is photographed with the wheels removed and the unit set on blocks.

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 Hawaii dealer license

Renewal and ongoing duties

Renew on or before June 30 of every even-numbered year. Hawaii allows no late renewal, so a missed date means a new application with every exhibit and fee. Notify the board and file the right application when you change location or business name, or when a salesperson leaves. Each branch office needs its own branch location application.

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

Hawaii dealer license FAQ

The questions first-time dealers ask most.

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

Apply to the Motor Vehicle Industry Licensing Board at the Department of Commerce and Consumer Affairs. You need a $50,000 inventory or flooring line of credit, qualifying premises with a lease of at least 1 year, a financial statement prepared by an accountant, a self-inspection report with a site plan and photos, and the fee. A corporation, LLC or LLP also files at least one salesperson application.

How much is the dealer bond in Hawaii?

Hawaii's standard requirement is not a bond. It is a $50,000 inventory or flooring line of credit. When that credit cannot reasonably be obtained, the board may accept a surety bond instead: $25,000 for a used dealer selling fewer than 60 vehicles a month on an annual basis, or $100,000 at 60 or more.

How much does a Hawaii dealer license cost?

A used dealer filing from July 1 of an even-numbered year through June 30 of an odd-numbered year pays $588 in Honolulu or $393 on a neighbor island. In the other half of the two-year cycle the total is $319 in Honolulu or $221 on a neighbor island. Each total includes a $50 nonrefundable application fee. Salesperson fees are separate.

Do I need a pre-licensing course in Hawaii?

No. The board's requirements for a dealer license list no pre-licensing course and no exam. The board reviews your premises, your line of credit or bond, your financial statement and your answers to the conduct questions.

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

No. State law requires a site used primarily for selling or displaying vehicles, with a permanent building suitable for displaying at least three vehicles and with sanitation facilities. The board also wants an office that is not shared with another business and a lease of at least 1 year.

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

Two in a calendar year. Hawaii law defines a dealer to include anyone who sells three or more vehicles within a calendar year. You also need a license at any volume if you are in the business of selling vehicles. Selling a vehicle you bought in good faith for your own personal, family or business use is excluded.

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 MVILB or your attorney before you sign a lease or pay a fee.

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