- License
- Motor vehicle dealer's license (used vehicles only)
- Surety bond
- $50,000
- State fee
- $303.50
- Pre-license course
- None required
- Background check
- BCI record check, each owner
- License term
- 3-year license, annual update
Rhode Island dealer license requirements
The figures a first-time used car dealer needs before applying to RI DMV. Each row shows how well it is supported.
- Surety bond
- $50,000Official source
A surety bond in the D/B/A name. You refile it every year with the renewal and it runs to December 31. You also need an approved $50,000 line of credit from a financial institution in the dealership's name.
- State license fee
- $303.50Official source
The license fee for one location, paid by check or money order after the Hearing Board approves you. State law sets the fee at $300 a year for each office or branch, and the DMV collects $303.50.
- Pre-license education
- None requiredOfficial source
The new dealership packet lists every document a first-time applicant must file. No course, exam or training certificate is on that list.
- Background check
- BCI record check, each ownerOfficial source
Each owner, partner or corporate officer files a Bureau of Criminal Identification record from the Attorney General, plus a check from the other state if they moved in within 5 years. The packet does not mention fingerprints.
- Insurance
- GU-1338 dealer plate filingOfficial source
After approval you file a GU-1338 insurance certificate for dealer plate coverage, in the D/B/A name, with the DMV Financial Responsibility Office. The packet does not state coverage limits.
- Business location
- 2,400 sq ft building + 2,400 sq ft lotOfficial source
One building with at least 2,400 square feet of enclosed, heated floor space for an office and repair area, plus a display lot of at least 2,400 square feet used only for your vehicle sales.
- License term and renewal
- 3-year license, annual updateOfficial source
The license runs three years for $900, paid in $300 yearly installments plus fees. Every year you file an update with a new bond and $303.50 per location. The 2027 packet was due November 1, 2026.
- Sales allowed without a license
- 4 per calendar yearOfficial source
The dealer rules treat anyone who sells, or brokers the sale of, more than four vehicles in one calendar year as a motor vehicle dealer.
- Processing time
- Not publishedConfirm with the agency
RI DMV does not publish a timeline. Your file is investigated, then scheduled for a Dealers' Hearing Board hearing. After approval you have 30 days to send the final items.
“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
Rhode Island Division of Motor Vehicles, Dealers' License and Regulations Office
License you apply for
Motor vehicle dealer's license (used vehicles only)
Official licensing pageTwo copies of the packet are online
How to get a Rhode Island dealer license
The order that works for a first application. Tick each step off as you finish it.
Get the name and location approved first
Contact the Dealers' License and Regulations Office before you file anything. It must approve the proposed dealership name and location, and a used-car dealership name has to include the words Auto Sales. Do this before you order a sign or commit to a lease.
Dealers' office: 401-462-5733
Qualify the property
You need a 2,400 square foot enclosed, heated building and a 2,400 square foot display lot. Get the city or town secondhand license if your municipality requires one, or a zoning approval letter for vehicle sales at that address. Use a deed or a notarized lease of at least one year that states both square footages.
280-RICR-30-20-1, section 1.6
Line up the bond, credit line and financials
Buy a $50,000 surety bond in the D/B/A name and attach the surety's power of attorney. Get an approved $50,000 line of credit from a financial institution in the dealership's name. Have a CPA prepare and sign the financial statement in the packet.
$50,000 bond + $50,000 credit line
Collect background records for every owner
Each owner, partner or corporate officer gets a Bureau of Criminal Identification record from the Attorney General's Office and attaches a picture ID. Anyone who is not a Rhode Island resident, or moved to the state in the past five years, also needs a criminal record check from the other state.
File the application and attend the hearing
Submit the notarized application, measurements page, employee forms and four exterior photos showing the whole building and lot. A corporation adds its articles, minutes, fictitious name filing and Certificate of Good Standing. The office investigates the file and schedules a hearing before the Dealers' Hearing Board.
Application for New Dealership
Send the post-approval items within 30 days
After the board grants the license you have 30 days to send the rest: a copy of your sales tax permit, a photo of your 24 square foot sign, the $303.50 license fee, your business telephone number, the GU-1338 insurance filing and a blank bill of sale for approval.
$303.50 license fee
Finalize with the licensing aide
Call the licensing aide for the license and plate numbers assigned to you. When the investigator has confirmed the requirements, a licensing aide contacts you to book the appointment that finalizes the application and issues the license.
Practical advice
Before you apply
Seven things to settle before any state application: the business, the owners, the money and the property.
Read the startup playbookRhode Island dealer location requirements
What the state checks at the business address.
- One building with at least 2,400 square feet of enclosed, heated floor space for an office and a repair and service area.
- A display lot of at least 2,400 square feet, used only for selling vehicles.
- A service and repair shop with enough tools for routine repairs and maintenance.
- A sign of at least 24 square feet on the front of the premises showing the licensed name, or the largest size local zoning allows.
- A business telephone installed at the licensed address before the license is issued.
- A deed, or a signed lease of at least one year that states the building and outdoor square footage.
- A full-time operation that is open during normal business hours and is not run as a sideline of another business.
Zoning comes first
Keeping a Rhode Island dealer license
Renewal and ongoing duties
File the yearly update each fall with a new $50,000 bond, a notarized line of credit affidavit, current employee lists and $303.50 per location. The 2027 packet was due November 1, 2026. Send owner or partner changes within 10 days, get a move approved before you relocate, and submit a new employee list whenever staff changes.
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.
Rhode Island dealer license FAQ
The questions first-time dealers ask most.
How do I get a used car dealer license in Rhode Island?
Get your name and location approved by the DMV Dealers' License and Regulations Office. Then file the Application for New Dealership with a $50,000 bond, a $50,000 line of credit, a CPA financial statement, BCI records, your lease and photos. The file is investigated and heard by the Dealers' Hearing Board. After approval you have 30 days to send the final items and the $303.50 fee.
How much is the dealer bond in Rhode Island?
$50,000. The surety bond is written in the D/B/A name, refiled every year with the renewal, and runs to December 31. Rhode Island also asks for an approved $50,000 line of credit from a financial institution in the dealership's name.
How much does a Rhode Island dealer license cost?
The license fee is $303.50 per location, paid after the Hearing Board approves you. State law sets the fee at $300 a year, and a three-year license is $900 paid in $300 yearly installments plus fees. Budget separately for the bond premium, the CPA statement, insurance and any city or town secondhand license.
Do I need a pre-licensing course in Rhode Island?
No. The new dealership packet lists every document a first-time applicant must file, and no course, exam or training certificate is on it.
Can I get a Rhode Island dealer license without a car lot?
No. You need one building with at least 2,400 square feet of enclosed, heated floor space, a display lot of at least 2,400 square feet, a service and repair shop, a 24 square foot sign and a business telephone. The business must be a full-time operation open during normal business hours.
How many cars can I sell in Rhode Island without a dealer license?
Four. Rhode Island's dealer rules define a dealer as anyone who sells, or acts as a broker in the sale of, more than four vehicles in one calendar year.
Sources
- AgencyRI DMV: Business Forms (dealer forms)
- FormRI DMV: Application for New Dealership
- Law280-RICR-30-20-1: Dealers, Manufacturers, and Rental Licenses
- FormRI DMV: 2027 Dealer Renewal Application
- FormRI DMV: Application for Transfer of Dealer's License
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 RI DMV or your attorney before you sign a lease or pay a fee.
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Plan the rest of the launch
- Startup playbookWhat to settle before you apply in any state.
- Startup budget plannerAdd up inventory, the lot, licensing and a cash reserve.
- Opening-day checklistEleven things to have in hand before the first sale.
- Dealer auction sitesWhere licensed dealers buy inventory.
- Floor plan lendersHow dealers finance the cars on the lot.
- Dealer management systemInventory, deals, titles and your website in one place.
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