Delaware Used Vehicle Dealer License Requirements – 2025 Overview
Delaware requires a dealer license if you buy, sell, or deal in motor vehicles as a business. This page highlights common requirements for used and wholesale dealers; always consult the Delaware Dealer Manual and DMV forms for complete rules.
Important: This is a general summary only. Always confirm the latest requirements, forms, and fees on the official state web pages before applying.
1. Who licenses dealers in Delaware?
The Delaware Division of Motor Vehicles licenses all new, used, and wholesale motor vehicle dealers through its Dealer Services section.
- Regulator: Delaware Division of Motor Vehicles – Dealer Services
- Official dealer licensing site: https://www.dmv.de.gov/VehicleServices/dealers/index.shtml
2. Common dealer license types
Examples of Delaware dealer license types include:
- New Vehicle Dealer
- Used Vehicle Dealer
- Wholesale Dealer
- Trailer or Motorcycle Dealer
3. Education, background checks, and key people
- Applicants must submit a criminal history background check and signature authorization as part of the dealer application.
- The owner must typically be a Delaware resident with a Delaware driver’s license issued at least a set period before applying (see DMV guidance for the current residency rule).
- All owners and officers must be disclosed; prior license actions or serious criminal history can affect approval.
4. Business location, office, and sign
Delaware requires an established place of business, generally including:
- A permanent business location with a physical address in Delaware.
- An enclosed office where books and records are maintained.
- A display lot adequate for vehicles offered for sale.
- A permanent sign in the dealership name, visible from the roadway.
- Proof of compliance with local zoning and land‑use ordinances.
5. Business entity, bond, and insurance
5.1 Business entity and licenses
- Form your entity and, if required, register with the Delaware Division of Corporations.
- Obtain a Delaware business license and applicable tax accounts.
- Secure a federal FEIN if needed.
5.2 Auto dealer bond
- Delaware dealers must file an auto dealer surety bond using the amount and form specified by DMV; the bond helps protect customers from certain violations.
5.3 Insurance
- Maintain garage liability insurance meeting Delaware minimums and covering dealer plates and test drives.
6. High-level application steps
- Determine your license type and review the Delaware Dealer Manual and application instructions.
- Form your business entity and obtain a Delaware business license and tax registrations.
- Secure a compliant dealership location, sign, and zoning approval.
- Complete your criminal background check and gather personal history documents.
- Arrange your dealer surety bond and liability insurance.
- Complete the Delaware Dealer License Application and attach all supporting documents and fees.
- Submit the packet to the DMV Dealer Services office and prepare for any site inspection.
7. After approval: ongoing compliance
- Renew your Delaware dealer license and business license within the required time frame.
- Maintain current bond and insurance; notify DMV of cancellations or changes.
- Keep complete records of all vehicle purchases, sales, titles, and temporary tags.
- Comply with Delaware Code provisions on advertising, disclosures, and odometer statements.