How to Get a Motor Vehicle Dealer License in Washington
This guide is for informational purposes only. SuretyBonds.com does not regulate or manage motor vehicle dealer licensing in Washington. Contact the Department of Licensing for the latest official requirements.
How to Become a Motor Vehicle Dealer in Washington
In Washington, you must apply for a motor vehicle dealer license if you sell more than four cars per year.
The Washington State Department of Licensing (DOL) requires you to submit specific documents and pass an inspection to get a license.
Continue reading for step-by-step application instructions, renewal information and a total cost breakdown.
How Do I Get a Motor Vehicle Dealer License in Washington?
To apply for a vehicle dealer license in Washington, follow these six steps:
Step 1: Verify eligibility
In Washington, any business or auctioneer who buys or sells motor vehicles needs a dealer license. This includes:
- New cars
- Used cars
- Trucks
- Motor homes/RVs
First, establish what type of vehicles you’ll be selling. New and used vehicle dealers have slightly different requirements, while RV dealers also have additional contract obligations.
Step 2: Set up your business
Next, complete the business license application to register your company with the state. Pay the $50 new business fee.
Your facility must also be on a commercial property and comply with all applicable business requirements. The DOL will inspect your dealership before approving your application.
Step 3: Purchase a surety bond
Under RCW 46.70.070, all dealers need a $30,000 surety bond. This is a financial guarantee that you’ll uphold state regulations and operate ethically.
Apply for your free Washington motor vehicle dealer bond quote today.
Step 4: Gather supporting documents
Next, gather the following documents:
- Copy of your property tax statement or lease agreement for the business site
- Personal Criminal History Statement for each owner
- Financial/Source of Funds Statement
- Written agreement with your manufacturer (new RV sellers only)
- List of vehicle manufacturers and a Sales and Service Agreement for each (new vehicle dealers only)
- Certificate of Dealer Education (used vehicle dealers only)
Step 5: Apply online or by mail
Complete the Vehicle Dealer Addendum and attach all supporting materials. You can apply online through the Department of Revenue or by mail to the address below:
State of Washington
Business Licensing Service
PO Box 9034
Olympia, WA 98507-9034
Be sure to include payment for all applicable license and plate fees.
Step 6: Comply with licensing regulations
After receiving your license, you must sign a contract to allow the state to search your vehicle registration information.
You also need to post your license at each dealership location.
How Much Does It Cost to Get an Auto Dealer License?
You can expect to pay at least $1,715.75 to get your Washington auto dealer license. However, this amount can vary greatly based on the following costs:
- Surety bond: Credit-based, often $300*
- Application fee: $975
- Business license fee: $50
- Dealer plates: $50.75 per plate
- Education fee (used dealers only): $340
*This reflects the average SuretyBonds.com Washington vehicle dealer bond rate for a one-year term. Apply online for your free personalized quote.
What Extra License Requirements Do Used Auto Dealers Have?
Used vehicle dealers must complete eight hours of approved dealer education through either:
- the Washington State Independent Automobile Dealers Association, or
- the Independent Dealers Education Association.
The live class typically costs $340. Only one owner needs to attend.
Once completed, you’ll receive a Certificate of Dealer Education to attach to your license application.
You’ll also need to complete 5 hours of continuing education each year through the same providers.
Do I Need a Sub-Agency License?
For each of the following, you’ll need a sub-agency license in addition to your original license:
- Each additional location
- Each name you do business under other than your DBA name
- Each website URL that is not a derivative of your DBA name, including URL redirect addresses
You’ll need to complete a separate sub-agency application for each location/name/URL and pay the $100 fee. You’ll also need an additional $30,000 bond per dealership location.
Can I Sell Vehicles at Car Shows Without a Dealer License?
If you’re temporarily selling vehicles at an event, such as a car show, you can apply for a short-term permit instead.
What Is the E-Permits System?
The DOL requires all dealers to register for the E-Permits system, which is the only way you can issue, revoke or reprint temporary license plates for customers. You can also buy plates directly in the system.
To request access, follow the instructions in the License eXpress for Vehicle Businesses User Guide.
Each of your staff members also needs a License eXpress account. As the administrator, you’ll need to generate a unique account access code for all employees issuing E-Permits.
For more information, see the DOL’s E-Permit Instructions.
How to Renew Your Motor Vehicle Dealer License
You can renew your license online through the DOR website or follow the instructions on your renewal letter to renew by mail.
You’ll need to pay the following fees:
- License renewal: $325
- Dealer plate renewal: $38.75 per plate
- Surety bond: Varies
- Sub-agency renewal: $25 per location
Used dealers must also complete 5 hours of continuing education annually through an approved provider.
Note: Business structure and address changes will cost an additional fee.
Last Updated: August 7, 2025
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