How to get a used car dealer license in Washington
A practical walkthrough of the Vehicle Dealer application — fees, bond, timeline, and what to expect at each step. Verified against the official agency as of June 2026.
Getting a Vehicle Dealer used-car dealer license in Washington:
- Surety bond required
- $30,000
- Application fee
- $975 (original license)
- License term
- Annual
- Typical timeline
- 4 – 8 weeks
- Typical first-year cost
- $1,500 – $4,000
This guide is informational and does not replace official Washington requirements. Always verify with the Washington State Department of Licensing (DOL) before applying.
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Who can apply for a Vehicle Dealer license
Washington requires a Vehicle Dealer license for anyone in the business of buying, selling, or exchanging vehicles — generally five or more in a 12-month period. Used-car lots hold the used vehicle dealer subtype, issued by the Washington State Department of Licensing (DOL).
In Washington this is also commonly called an auto dealer license, car dealer license, or motor vehicle dealer license — all the same Vehicle Dealer authority to sell used vehicles.
- An established place of business in Washington zoned for vehicle sales, with an office, a display lot, and a permanent sign
- A $30,000 motor vehicle dealer surety bond
- A Washington business license and Unified Business Identifier (UBI) number
- Commercial general liability or garage-liability insurance on the location
- A criminal background check for the applicant and owners
- A passing inspection of the dealership location by DOL or the Washington State Patrol
Step-by-step process
- 1
Secure a compliant location
Get a Washington location zoned for vehicle sales with an office, a display area for your inventory, and a permanent sign showing your business name. DOL inspects the site before your license is issued.
- 2
Register your business and get a UBI
Form your Washington business entity and obtain a state business license with a Unified Business Identifier (UBI) number through the Department of Revenue's Business Licensing Service. You'll reference the UBI on the dealer application.
- 3
Post your $30,000 surety bond
Buy a $30,000 motor vehicle dealer surety bond and keep it active the entire time you're licensed. You pay an annual premium, not the full amount.
- 4
Complete the application and pay the fee
File the vehicle dealer application with DOL, pay the $975 original license fee, and include your bond, proof of business registration, insurance, and location documents. Owners submit to a background check.
- 5
Pass the location inspection
DOL or the Washington State Patrol inspects your dealership to confirm the office, lot, and signage meet requirements. Have everything operational before the inspector arrives.
- 6
Receive your license and dealer plates
Once approved, you're a licensed Washington vehicle dealer and can buy dealer plates to move and demonstrate inventory, buy at auction, and retail used vehicles.
Washington dealer license cost — fees breakdown
| Item | Amount |
|---|---|
Original license fee Main location, paid to DOL. | $975 |
Surety bond premium (annual) Premium on the $30,000 bond, by credit. | $300 – $2,400 |
Dealer plates Purchased after licensing. | Varies |
Business license + UBI DOR Business Licensing Service, plus city endorsements. | ~$90+ |
Liability insurance Garage/commercial liability on the location. | Varies |
Surety bond requirement
Washington requires every used-vehicle dealer to post a $30,000 surety bond. The bond protects buyers from misconduct (odometer fraud, undisclosed liens, deceptive trade practices) and the state from unpaid taxes.
You don't pay the full bond amount up front — you pay an annual premium to a surety company, typically 1-8%of the bond's face value. Your actual premium depends on personal credit and business history.
Washington requires a $30,000 motor vehicle dealer surety bond, filed with DOL and kept active for as long as your license is in force. You pay an annual premium (typically 1–8% of the bond) based on your credit, not the full $30,000.
Renewal
Washington vehicle dealer licenses renew annually. Keep your $30,000 bond and insurance current and your location compliant. DOL sends renewal information before expiration; renew on time to keep operating and keep your dealer plates valid.
Common questions
When do I need a Washington dealer license?+
Washington treats you as a vehicle dealer once you're in the business of buying and selling vehicles — generally five or more in a 12-month period. Selling at that volume without a Department of Licensing dealer license is illegal.
How much does a Washington dealer license cost?+
The original license fee is $975. On top of that, budget for the surety bond premium (often $300–$2,400/year on the $30,000 bond), your business license, insurance, and facility costs — most first-year totals land between $1,500 and $4,000.
Why is the Washington dealer bond $30,000?+
Washington sets the motor vehicle dealer bond at $30,000 to protect buyers and the state against fraud, unpaid taxes, or title problems. You don't pay the full amount — just an annual premium based on your credit.
Do I need a physical lot to get licensed in Washington?+
Yes. Washington requires an established place of business zoned for vehicle sales, with an office, a display lot, and a permanent sign. DOL or the State Patrol inspects the location before issuing the license — you can't run it purely from home.
How long does it take to get licensed in Washington?+
Most applicants are licensed in about 4 to 8 weeks once the location is ready, the bond and business license are in place, and the background check clears. Scheduling and passing the site inspection is usually the longest step.
How much does a Washington dealer license cost?+
Plan for about $1,500 – $4,000 in the first year. That covers the $975 (original license) application fee and the $30,000 surety bond — you pay an annual premium of roughly 1-8% of the bond, not the full amount — plus business-formation, facility, and dealer-plate costs. See the full fees breakdown above.
How do I get dealer plates in Washington?+
Dealer plates are separate from the license itself. Once your Vehicle Dealer license is approved, you apply for dealer plates and pay a per-plate fee (listed in the fees breakdown above). You can't obtain dealer plates before the license is issued.
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