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All state guides Washington dealer license

How to get a used car dealer license in Washington

You apply for a motor vehicle dealer endorsement through the Department of Revenue's Business Licensing Service, and the Department of Licensing approves it. Used-only dealers need 8 hours of approved education with a test, a $30,000 bond and a site inspection.

  • Sourced to DOL
  • Checked October 2026
  • Free
License
Motor vehicle dealer license (an endorsement on your Washington business license)
Surety bond
$30,000
State fee
$975
Pre-license course
8 hours + test
Background check
Criminal history statement, each owner
License term
12 months, $325 renewal
What the state asks for

Washington dealer license requirements

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

Surety bond
$30,000Official source

Surety bond for a motor vehicle dealer. Each business location needs its own bond, and the principal name must match the owner name and business name on your application exactly.

State license fee
$975Official source

Dealer license fee paid with the application. Dealer plates are $50.75 per set, and the Business Licensing Service adds its own processing fee. Renewal is $325 a year.

Pre-license education
8 hours + testOfficial source

Used-only dealers complete at least 8 hours of approved education and pass a test before applying. DOL lists two providers: WSIADA and the Independent Dealers Education Association.

Background check
Criminal history statement, each ownerOfficial source

Every owner, partner, officer and LLC member or manager files a Personal/Criminal History Statement. DOL also reviews your finances and may pull a credit report. State law lets DOL ask for fingerprints.

Insurance
Confirm with DOLConfirm with the agency

DOL's application documents list a bond but no insurance certificate. Confirm with DOL before you assume no coverage is needed to be licensed.

Business location
Commercial building, sign, set hoursOfficial source

A permanent enclosed commercial building with a permanent exterior sign, a listed phone, records kept on site and posted hours of at least 10 a.m. to 4 p.m., five days a week.

License term and renewal
12 months, $325 renewalOfficial source

The license expires 12 months after it is issued. Renewal costs $325, and used vehicle dealers must show 5 hours of approved continuing education.

Sales allowed without a license
4 vehicles in 12 monthsOfficial source

Without a license you may not sell more than 4 vehicles registered to you in any 12 months, buy and sell vehicles for profit, or sell any vehicle that is not registered to you.

Processing time
Not publishedConfirm with the agency

DOL does not publish a processing time. After you file a complete application, a dealer investigator contacts you to schedule the required site inspection.

“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

Washington State Department of Licensing

License you apply for

Motor vehicle dealer license (an endorsement on your Washington business license)

Official licensing page

An older DOL sheet shows an outdated plate fee

DOL's license requirements sheet (DLR-430-038, revised 2019) still lists dealer plates at $43 a year. The current DOL fee page lists $50.75 per set for new plates and $38.75 to renew them. Use the fee page when you total your payment. The $975 license fee and the $325 renewal fee are the same in both places.
Step by step

How to get a Washington dealer license

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

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  1. Take the 8 hour dealer course and pass the test

    If you will sell only used vehicles, at least one owner, partner, officer or LLC member or manager must finish 8 hours of approved education and pass the test before you apply. DOL lists the Washington State Independent Automobile Dealers Association and the Independent Dealers Education Association as providers. Keep the certificate for the application.

    RCW 46.70.079

  2. Secure a site that meets the dealer rules

    Check zoning and building codes with the city or county first. You need an enclosed commercial building, a permanent exterior sign, a listed phone, records on site and posted hours of 10 a.m. to 4 p.m., five days a week. Get a lease that runs at least one year, or proof that you own the property.

    RCW 46.70.023

  3. Get the $30,000 surety bond

    Use DOL's Vehicle, Vessel Dealer Business Bond form or your surety's own form. The principal name must match both the owner name and the business name exactly. The bond needs your signature, the signature of the surety's attorney-in-fact, an effective date and the power of attorney.

    RCW 46.70.070

  4. Prepare the financial and criminal history forms

    Complete the Financial/Source of Funds Statement with figures no more than 30 days old and proof of each asset. Sole proprietors and partners each file their own. A corporation or LLC files one for the business. Every owner, partner, officer and member or manager signs a Personal/Criminal History Statement. DOL may also request a credit report.

    DOL Dealer Checklist

  5. Apply through the Business Licensing Service

    File the Business License Application with the Vehicle Dealer/Manufacturer Addendum online with the Department of Revenue, or by mail. Pay the $975 dealer license fee, $50.75 for each set of dealer plates and the Business Licensing Service processing fee. The standard plate order is 3 or fewer per location.

    $975 plus plates

  6. Pass the DOL site inspection

    After your application is complete, a DOL dealer investigator contacts you to schedule an inspection. The site must meet every place of business requirement on the day of the inspection, including the sign and the posted hours.

    Required before approval

  7. Receive the license and set up E-permits

    The dealer license is printed on your business license as an endorsement. Post it at each location, and do not start selling until you have it. All retail vehicle dealers must use DOL's E-permits system, so set that up before your first sale.

    Post the license at each location

Practical advice

Sign the lease only after the city or county confirms the zoning, and make sure it runs at least a year. If you plan to share a building with another dealer, lay out separate offices, records and inventory areas before the inspection. Order the bond in the exact owner and business name that will appear on the application, because an incorrect bond delays approval.

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

Washington dealer location requirements

What the state checks at the business address.

  • A permanent, enclosed commercial building that meets local zoning and building codes. In most cases you cannot sell from your home.
  • An exterior sign permanently fixed to the land or building, showing the business name and the type of business, such as auto sales.
  • A working phone with the number listed in directory assistance. A mobile number is accepted if it is listed.
  • Open at least 10 a.m. to 4 p.m., five days a week, with the hours posted at the main entrance.
  • Books, records and files kept at the business site.
  • If you share a site with another dealer, records, office space and inventory must be physically separated and clearly identified.
  • Ownership or a lease of the property for the whole license year. The lease you file must be valid for at least one year.

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 Washington dealer license

Renewal and ongoing duties

Renew every 12 months ($325). Used vehicle dealers must show 5 hours of approved continuing education for each license year. Keep the bond active, because the license is canceled automatically if the bond is canceled or used up. Tell DOL within ten days if your location or business name changes. DOL recertifies your site at least once every 36 months.

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

Washington dealer license FAQ

The questions first-time dealers ask most.

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

Complete 8 hours of approved dealer education and pass the test, secure a commercial site that meets the place of business rules, and get a $30,000 bond. Then file the Business License Application and the Vehicle Dealer/Manufacturer Addendum with the Department of Revenue's Business Licensing Service and pay the fees. A DOL investigator inspects the site before the license is approved.

How much is the dealer bond in Washington?

$30,000 for a motor vehicle dealer, set by RCW 46.70.070. Each business location needs its own bond, and the license is canceled automatically if the surety cancels the bond.

How much does a Washington dealer license cost?

The dealer license fee is $975, and renewal is $325 a year. Dealer plates are $50.75 per set when first issued. You also pay the Business Licensing Service processing fee. The bond premium and the education course are separate costs.

Do I need a pre-licensing course in Washington?

Yes, if you sell only used vehicles. You need at least 8 hours of approved education and a passing test before you apply, and 5 hours of continuing education each year to renew. Franchised new car dealers and a few other license types are exempt.

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

No. You need a permanent enclosed commercial building with a permanent sign, a listed phone and posted business hours, and DOL inspects it before approval. State law also requires a retail dealer to keep office and display facilities in a commercially zoned location or one that meets local land use rules. In most cases a home does not qualify.

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

You may sell up to 4 vehicles that are registered to you in any 12 months. Without a dealer license it is illegal to sell more than that, to buy and sell vehicles for profit, or to sell any vehicle that is not registered to you.

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

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