Eagar to start selling cars in Delaware? Not so fast. To legally sell cars in the Diamond State, you’ll need to first get your Delaware Motor Vehicle Dealer License and Delaware Motor Vehicle Dealer Bond. Don’t know where to start? Start right here!
Not sure if you need a dealer license? Check out this post on selling cars without a license.
Short on time? Check out our Car Dealer License FAQ.
How to get a Delaware Dealer License
Step #1: Complete Delaware Dealership License Application
Step #2: Include Criminal History Background Check and a Signature Authorization
Worried about a previous felony on your record? Check out this post “Can I Get a Car Dealer License With a Felony?”
Step #3: Meet Requirements
Your business location must have the following:
- Office located on premises with desk and filing cabinet for holding records
- Business sign measuring a minimum of 24” x 36”, clearly visible from the road
- Display lot large enough for at least 5 vehicles
- Installation of business telephone
- Zoning approval form
Zoning approval forms must be included with your license application. Contact the Planning and Zoning Office if located outside of town or city limits.
- Planning and Zoning Office – New Castle County: 302-395-5400
- Planning and Zoning Office – Kent County: 302-744-2471
- Planning and Zoning Office – Sussex County: 302-855-7700
If located within city or town limits, contact the office in charge of zoning. Offices are normally located in your city hall.
Step #4: Purchase liability insurance
Purchase insurance from an insurance provider.
Step #5: Purchase $25,000 Delaware Motor Vehicle Dealer Bond
A Delaware Motor Vehicle Dealer Bond protects your customers from fraud or dishonest acts that might occur during a business transaction. You can purchase a bond from a surety bond provider.
Not sure how to get a Delaware Auto Dealer Bond? Use this interactive tool to help you out.
About the Delaware Motor Vehicle Dealer Bond
In the state of Delaware, a $25,000 motor vehicle dealer bond is required. The amount you will pay for your bond is dependent on many factors, one of which is your credit score. If you have a great credit score, you could get your Delaware Motor Vehicle Dealer bond for $250.
Have bad credit? We can still get you bonded. Check out our bad credit options.
Nervous about paying for your bond? We can help you finance.
Step #6: Pay Fees
- The fee for each dealer tag is $10
- The annual Delaware Motor Vehicle License fee is $100
Checks or money orders can be made to the State Division of Revenue.
Step #7: Submit Delaware Dealer License Application
Send your application to your local Delaware Department of Motor Vehicles.
Addresses can be found here.
Step #8: Get Business Location Inspected
Once you send in your Delaware Motor Vehicle Dealer License Application and all necessary forms and fees, an inspector from the Delaware Department of Motor Vehicles will come and inspect your place of business.
Only after inspection and approval of the business location will a Delaware Motor Vehicle Dealer license be issued to you.
License Expiration and Renewal
Delaware Motor Vehicle Dealer licenses expire on December 31st of every year and must be renewed through the Delaware Division of Motor Vehicles. Dealers must supply a record of vehicles sold the previous 12 months. The sales record will be used to determine the number of dealer tags authorized for the renewal.
Delaware Motor Vehicle Dealers must sell a minimum of 5 vehicles per year to maintain a dealer license.
Questions About Getting Licensed
For more information, or for answers to your Delaware Motor Vehicle Dealer licensing questions, contact the Dover Administrative Office by phone at 302-744-2571.
You can also reference Delaware’s Department of Motor Vehicles New Vehicle Dealership rules and requirements.
Or reference the Delaware Dealer Licensing Manual.
View our FREE EBOOK: “The Ultimate Guide To Car Dealer Licensing”
Related links:
How To Open Your Own Car Dealership [Infographic]
Delaware Code Section 3005: Motor Vehicle Dealer License Fee
