Rhode Island Used Vehicle Dealer License Requirements – 2025 Overview
To engage in the business of selling vehicles in Rhode Island, you must be licensed as a dealer by the DMV. This page summarizes typical used dealer requirements.
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 Rhode Island?
Rhode Island’s Division of Motor Vehicles (DMV) licenses car, truck, and motorcycle dealers through the Dealers' Licenses & Regulations Office.
- Regulator: Rhode Island Division of Motor Vehicles – Dealers' Licenses & Regulations Office
- Official dealer licensing site: https://dmv.ri.gov/licenses-permits-ids/dealer-licenses
2. Common dealer license types
Dealer license types in Rhode Island include:
- New Car Dealer
- Used Car Dealer
- Motorcycle Dealer
- Transport and Related Licenses
3. Education, background checks, and key people
- Applicants must complete DMV dealer application forms and provide information on all owners and officers.
- Background and financial responsibility may be reviewed as part of the licensing process.
4. Business location, office, and sign
Rhode Island requires an established place of business that generally includes:
- A fixed business location within Rhode Island.
- An indoor office for records and customer transactions.
- A display lot for vehicles offered for sale.
- A permanent sign in the dealership name, visible from the public roadway.
- Compliance with municipal zoning and any required business permits.
5. Business entity, bond, and insurance
5.1 Entity and tax registration
- Register your business entity and trade name with the Rhode Island Secretary of State as required.
- Obtain appropriate Rhode Island tax IDs for sales and use tax collection.
5.2 Dealer bond and insurance
- Rhode Island dealers must provide a dealer bond in the amount specified by DMV regulations.
- Maintain liability insurance that covers dealer plate use and operations; proof is required with the application.
6. High-level application steps
- Decide which Rhode Island dealer license type best fits your business (new, used, or motorcycle dealer).
- Form and register your business entity, obtain tax IDs, and secure a compliant location.
- Arrange your dealer bond and liability insurance according to DMV requirements.
- Complete the DMV’s Dealer License Application and all related forms.
- Submit your packet and fees to the Dealers' Licenses & Regulations Office.
- Prepare for inspection and any necessary hearings or Board review.
7. After approval: ongoing compliance
- Renew your dealer license, plates, bond, and insurance on the DMV schedule.
- Maintain records of all purchases, sales, titles, and temporary plates for the required retention period.
- Notify DMV of changes to your business name, ownership, or location.
- Comply with Rhode Island consumer protection laws, advertising rules, and title requirements.