Washington wholesale vehicle dealers will no longer have to worry about licensing requirements due to the passage of House Bill 1722. This new law takes effect on July 1, 2017.
Under the current law, the Department of Licensing (DOL), is required to issue wholesale vehicle dealer licenses for all motor vehicle dealers operating in the state of Washington. As a licensed wholesaler, you may only sell vehicles to licensed motor vehicle dealers, or other licensed wholesalers. In order to sell five or more vehicles, a wholesaler license was required. In addition to the license requirement, vehicle dealers must file a surety bond in the amount of $30,000.
Why is the wholesale vehicle dealer license requirement changing?
The Department of Licensing has received complaints from state and federal law enforcement agencies stating that there had been an ample amount of suspected criminal activity connected to people and vehicles that had a Washington wholesale vehicle dealer license. There are ongoing criminal investigations in states including Wyoming, Colorado, and Illinois. The wholesale vehicle dealer’s bond has continued to cause problems and the state is not benefiting economically from this bond.
How does this effect wholesale vehicle dealers?
The passage of Washington House Bill 1722 will officially eliminate ALL licensing requirements for wholesale motor vehicles dealers. The new law eliminates provisions permitting motor vehicle dealers, who have done business with a motor vehicle wholesaler, from making claims on a motor vehicle wholesaler’s bond.
How long will this process take?
The elimination process is set to take place over a two year time period. Starting July 1, 2017, The Department of Licensing may not issue any new wholesale vehicle dealer licenses. Effective the following year July 1, 2018 the DOL may not renew any wholesale vehicle dealer licenses. On July 1, 2019, the wholesale vehicle dealer license and all references to wholesale vehicle dealers will officially be removed from the law for good.