Hawaii Used Vehicle Dealer License Requirements – 2025 Overview
Anyone engaging in the business of buying, selling, or dealing in motor vehicles in Hawaii must generally hold a license from the Motor Vehicle Industry Licensing Board. This page focuses on typical requirements for used‑vehicle dealers.
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 Hawaii?
Hawaii licenses motor vehicle dealers at the state level through the Motor Vehicle Industry Licensing Board, part of the Department of Commerce and Consumer Affairs.
- Regulator: Hawaii Motor Vehicle Industry Licensing Board
- Official dealer licensing site: https://cca.hawaii.gov/pvl/boards/motorvehicle/
2. Common dealer license types
The Board issues several Hawaii dealer license types, including:
- New Vehicles Dealer – may sell new and used vehicles under franchise agreements.
- Used Vehicles / Motorcycles / Scooters Dealer – focuses on used vehicles and certain motorcycles or scooters.
- Auction Dealer – sells vehicles at auction only.
3. Education, background checks, and key people
- Applicants must disclose ownership, officers, and any prior disciplinary or criminal history on Board forms.
- Individual salespeople also need separate licenses from the Board.
- Certain offenses or prior license revocations can delay or prevent approval.
4. Business location, office, and sign
To be licensed, your Hawaii dealership must generally have:
- An established place of business with a physical street address.
- An indoor office where books and records are kept and customers can complete transactions.
- A display area or lot for the vehicles you sell.
- Signage that complies with local county rules and clearly identifies the dealership.
- Compliance with local zoning, use, and permitting requirements.
5. Business entity, bond, and insurance
5.1 Business registration and tax
- Form your entity (corporation, LLC, partnership, etc.) and register with the Hawaii Department of Commerce and Consumer Affairs.
- Obtain a Hawaii General Excise (GE) Tax License and any local tax registrations.
5.2 Bond and insurance
- Hawaii dealers must maintain a motor vehicle dealer bond in the amount and form required by the Motor Vehicle Industry Licensing Board.
- Dealers also need liability insurance covering dealer operations and test drives.
6. High-level application steps
- Determine the dealer license type you need (new, used, auction).
- Form and register your business entity and obtain a Hawaii GE tax license.
- Secure a compliant business location with office, display area, and required signage.
- Arrange your dealer bond and liability insurance.
- Complete the Board’s Motor Vehicle Dealer application forms and gather required attachments, including entity documents and financial statements.
- Submit the application and fees to the Motor Vehicle Industry Licensing Board and participate in any required hearings or interviews.
7. After approval: ongoing compliance
- Dealer and salesperson licenses must be renewed on the schedule set by the Board; renew before expiration to avoid lapses.
- Maintain books and records for the retention period required by Hawaii law.
- Notify the Board of changes in ownership, location, or business structure.
- Comply with federal and state rules on odometer disclosures, advertising, and consumer protection.