Is dealer education required for a used dealer license in Idaho?

Yes. All active owners of a used‑only or wholesale‑only Idaho dealership must complete an 8‑hour pre‑licensing class and pass an exam before a license is issued.

What kind of business location do I need for an Idaho dealer license?

You need an established place of business with an office, display lot, permanent sign, listed telephone, and zoning approval.

Do Idaho dealers need a bond and insurance?

Yes. Idaho requires a motor vehicle dealer surety bond and appropriate liability insurance; details are in ITD’s dealer application packet.

Idaho Used Vehicle Dealer License Requirements – 2025 Overview

Idaho requires a dealer license if you sell more than a few vehicles in a year. Used and wholesale applicants must complete pre‑licensing education, secure a location, and meet bonding and insurance requirements before ITD will issue a license.

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 Idaho?

The Idaho Transportation Department (ITD) licenses vehicle and vessel dealers through its DMV Dealer Licensing unit.

Regulator: Idaho Transportation Department – DMV Dealer Licensing
Official dealer licensing site: https://itd.idaho.gov/itddmv/

2. Common dealer license types

Common Idaho dealer license types include:

Retail dealer – sells vehicles directly to the public.
Wholesale dealer – sells vehicles only to other licensed dealers.
Vessel dealer – sells boats and certain watercraft.

3. Education, background checks, and key people

All active owners of a prospective used‑only or wholesale dealership must attend an 8‑hour pre‑licensing dealer education class and pass a closed‑book exam.
Each owner or officer must complete a Personal History form disclosing criminal and regulatory background.
Fingerprints and criminal history checks may be required when requested by ITD.

4. Business location, office, and sign

Idaho's definition of an established place of business generally includes:

A permanent business location with a building owned or leased by the dealer.
An enclosed office where records are kept and customers can meet with staff.
A display lot for vehicles being offered for sale.
A permanent sign in the dealership name, visible from the nearest roadway.
Proof of a listed telephone number for the dealership.
Compliance with local zoning and land‑use requirements.

5. Business entity, bond, and insurance

5.1 Entity and tax registration

Form your entity and register it with the Idaho Secretary of State, if required.
Obtain a federal FEIN and an Idaho sales tax permit for vehicle sales.

5.2 Dealer bond and insurance

Idaho requires a motor vehicle dealer surety bond. The current bond amount and form are listed in ITD’s dealer application packet and handbook.
Dealers must carry garage liability insurance with limits that satisfy Idaho Code and ITD standards.

6. High-level application steps

Decide whether you will operate as a retail or wholesale dealership (or both).
Complete the required 8‑hour dealer education class and exam for used/wholesale operations.
Form your business entity and get your Idaho sales tax permit.
Secure a compliant dealership location with office, lot, sign, and listed phone line.
Arrange your dealer bond and liability insurance according to ITD requirements.
Complete the Application for Vehicle or Vessel Dealership License (ITD 3170) and all personal history forms.
Submit the completed packet with fees to ITD and schedule your site inspection.

7. After approval: ongoing compliance

Renew your Idaho dealer license annually and keep your bond and insurance active.
Maintain accurate records of all vehicle purchases, sales, titles, and temporary permits for the required number of years.
Notify ITD of changes in ownership, business name, or location.
Comply with Idaho advertising rules, title delivery deadlines, and odometer disclosure laws.