Connecticut Auto Dealer License Requirements – 2025 Overview
Connecticut licenses dealers and repairers through the DMV’s Regulated Business Licensing program and the Dealers and Repairers Licensing Unit. This summary focuses on standard new and used auto dealer licenses.
Important: This is an unofficial summary. Always review the latest DMV instructions, including the K-36 procedure document and K-7 application, before applying.
1. Who regulates dealers in Connecticut?
Auto dealer and repairer licenses are issued by the Connecticut Department of Motor Vehicles.
- Regulator: Connecticut DMV – Dealers and Repairers Licensing Unit
- Regulated business license overview: Get a regulated DMV business license – CT DMV
- Dealer and repairer license instructions (K-36): K-36 Procedure for Obtaining a Connecticut Automotive or Electric Low Speed Dealer or Repairer License (PDF)
2. Connecticut dealer and repairer license types
Connecticut offers several license categories, including:
- New car dealer.
- Used car dealer.
- General repairer and limited repairer.
- Other specialty license types as defined by DMV.
The K-36 instructions and DMV business license page explain the differences between these categories and the requirements that apply to each.
3. Business location and facility standards
Connecticut requires dealers to maintain a facility that is capable of supporting sales and, in many cases, repair operations.
- Permanent business location with office space open to the public.
- Display and storage area for new and used vehicles.
- Repair department capable of holding multiple vehicles, where required for the license type.
- Parts department, customer rights signage, labor and storage price signage, and other posted notices as described in DMV guidance.
- At least one qualified mechanic for certain dealer and repairer license types.
4. Business setup, bond, and insurance
4.1 Entity and tax registration
- Form your business entity and register it with the Connecticut Secretary of the State if required.
- Obtain a sales tax permit using the K-7 application and register with the Department of Revenue Services.
4.2 Surety bond
Connecticut dealer applicants must provide a surety bond. Current guidance for many dealer license types references a $50,000 bond, but the precise amount depends on the license category and current DMV policy. Always confirm the bond amount and wording in the most recent DMV instructions or with your bonding company.
4.3 Insurance
Dealer and repairer licensees must maintain appropriate liability insurance and, where applicable, garage coverage that meets Connecticut requirements. Proof of insurance is typically filed with the DMV as part of the application.
5. Connecticut dealer application process
The K-36 procedure document outlines the steps to obtain a dealer or repairer license. A typical process includes:
- Determine the appropriate license type (new dealer, used dealer, general repairer, etc.).
- Secure a compliant business location and set up the required departments, signage, and equipment.
- Form your entity and obtain a sales tax permit.
- Arrange your dealer surety bond and required insurance.
- Complete the K-7 Application for Automobile or Electric Low Speed Dealer’s or Repairer’s License and related forms.
- Submit the application, bond, fees, and supporting documents to the Dealers and Repairers Licensing Unit.
- Prepare for DMV inspection and any required hearings or reviews.
6. After approval: ongoing Connecticut dealer compliance
- Renew your dealer or repairer license, bond, and insurance in line with Connecticut requirements.
- Maintain your facility, including repair and parts departments, signage, and records.
- Comply with advertising, sales, and disclosure rules enforced by the DMV.
- Respond promptly to DMV communications and any customer complaints or investigations.