How to Get a Dealer License in Delaware
In Delaware, dealer licensing runs through the Delaware Division of Motor Vehicles (DMV), a division of DelDOT. To get a used car dealer license in Delaware you'll need a registered business, a compliant location, a None required surety bond, and the fees below. Whether you're opening a car lot, going wholesale-only, or starting a buy-here-pay-here operation, this guide walks the Delaware auto dealer license requirements, real costs, and the exact steps — in plain English. Rules change, so verify everything against the Delaware Division of Motor Vehicles (DMV), a division of DelDOT's current pages before you file.
- Surety bond
- None required
- License term
- Annual term — the license, all dealer plates, and dealer IDs expire at midnight December 31 and may be renewed in the 90 days before expiration, conditioned on the 5-vehicle minimum.
- Sales threshold
- No minimum is required to obtain a license, but to renew a dealer must have sold at least 5 vehicles between January 1 and December 31 (21 Del. C. §6304) — fewer than 5 means renewal is denied unless the Director waives it for good cause in writing.
- Pre-licensing
- None. No pre-licensing course or exam. Applicants must be 18+, hold a Delaware driver's license and 90 days of Delaware residency (franchised dealers exempt), and pass a State Bureau of Identification fingerprint/criminal-history check.
License types in Delaware
| License type | What it covers |
|---|---|
| Used Vehicle Dealer | Retail and dealer/auction sales of used vehicles; must title all inventory into the dealership name. |
| New Vehicle Dealer | New-vehicle sales under a manufacturer franchise, handling Certificates of Origin. |
| Wholesaler | Sells or exchanges only with other dealers or licensed auto auctions — cannot sell to the public, handle new vehicles, sell on consignment, or issue temp tags; may operate from a residence. |
| Motorcycle / Trailer / RV / Mobile Home / Auction | Separate classifications by asset type, each licensed under 21 Del. C. Ch. 63. |
What it costs
| Item | Cost | Notes |
|---|---|---|
| DMV dealer license fee | $0 | The Division charges no fee for the license itself (21 Del. C. §6302(f)) |
| Dealer business license (Division of Revenue) | $100 / year | Required annual business license paid to the Delaware Division of Revenue |
| Additional wholesale license (Division of Revenue) | $75 | For wholesale dealers, on top of the business license |
| Dealer plates | $10 each / year | Expire December 31 |
| Dealer reassignment forms | $10 each | Issued by DMV in lots of no fewer than 5 (21 Del. C. §2504(c)) |
Step by step
- Establish eligibility (18+, and for non-franchise dealers a Delaware license plus 90-day residency) and secure a compliant location with zoning approval, 5-vehicle display space, office, phone, sign, and computer/printer.
- Register the business name with the county Prothonotary and obtain the $100 dealer business license from the Division of Revenue (plus the $75 wholesale license if applicable).
- Obtain liability insurance and, if the premises front a State-maintained road, a DelDOT entrance permit.
- Request the dealership application from DOTDealerLicensing@Delaware.gov, complete it, and submit fingerprints for the SBI criminal-history check.
- Submit the application to the DMV Administrative Office in Dover with zoning approval, business-license receipt, insurance proof, and any franchise letter.
- Pass the DMV on-site inspection, then pay $10 per dealer plate, obtain plates and reassignment forms, and set up print-on-demand temp tags via the dealer portal.
Premises & temp tags
Location: You need an established place of business that meets local zoning (zoning approval is filed with the application), with sales/office space and display space for 5 or more vehicles, a telephone listed in the business name, liability insurance, an exterior sign at least 24" x 36" showing the approved name, and an on-site computer and laser printer to print temporary tags. A DMV agent inspects the location before approval, and dealers may not share a lot, office, or location with another dealer. Wholesalers are exempt from the display-lot and sign rules and may work from a residence.
Temp tags / plates: Delaware uses a mandatory print-on-demand temporary-tag system — dealers must keep a computer and laser printer on-site and issue temp tags through the DMV dealer portal. Motorcycle dealers are exempt from print-on-demand, wholesalers may not issue temp tags at all, and auctions may issue 30-day temporary plates after verifying a valid license and insurance.
Delaware-specific things to know
- Delaware has no state sales tax, but a Motor Vehicle Document Fee applies instead — roughly 4.25% of the purchase price (minimum $8) under 30 Del. C. §3002. Confirm the exact rate against the statute before relying on it; only one trade-in may be deducted per document-fee calculation.
- There is no dealer surety bond and no DMV license fee — the only license costs are the $100 (and $75 wholesale) Division of Revenue business licenses.
- Dealers may not co-locate — sharing a lot, office, or location with another dealer is prohibited, and a second dealership needs its own license and separate tag, temp-tag, and reassignment logs.
- The wholesale carve-out is broad but restrictive: wholesalers can run from a private home and skip the lot/sign rules, but are barred from the public, new vehicles, consignment sales, and issuing temp tags.
Official Delaware resources
- Delaware DMV — Dealer Services ↗
- Delaware DMV — Dealership Manual (statute + rules) ↗
- Delaware Motor Vehicle Dealer Statutes (21 Del. C. Ch. 63) ↗
Delaware dealer license FAQ
How much does a dealer license cost in Delaware?+
DMV dealer license fee: $0; Dealer business license (Division of Revenue): $100 / year; Additional wholesale license (Division of Revenue): $75; Dealer plates: $10 each / year; Dealer reassignment forms: $10 each. Plus the None required surety bond (you pay a small annual premium on that, not the full amount).
How big is the dealer bond in Delaware?+
Delaware requires a None required surety bond. Delaware imposes NO state motor-vehicle-dealer surety-bond requirement — the word 'bond' does not appear anywhere in the 57-page DMV Dealership Manual that reproduces the full licensing statute. This makes Delaware one of the few states with no dealer bond. Do not publish a bond amount.
Do you need a physical lot to get a dealer license in Delaware?+
You need an established place of business that meets local zoning (zoning approval is filed with the application), with sales/office space and display space for 5 or more vehicles, a telephone listed in the business name, liability insurance, an exterior sign at least 24" x 36" showing the approved name, and an on-site computer and laser printer to print temporary tags. A DMV agent inspects the location before approval, and dealers may not share a lot, office, or location with another dealer. Wholesalers are exempt from the display-lot and sign rules and may work from a residence.
How many cars can you sell in Delaware without a dealer license?+
No minimum is required to obtain a license, but to renew a dealer must have sold at least 5 vehicles between January 1 and December 31 (21 Del. C. §6304) — fewer than 5 means renewal is denied unless the Director waives it for good cause in writing.
How long is a Delaware dealer license valid?+
Annual term — the license, all dealer plates, and dealer IDs expire at midnight December 31 and may be renewed in the 90 days before expiration, conditioned on the 5-vehicle minimum.
Is dealer training or an exam required in Delaware?+
None. No pre-licensing course or exam. Applicants must be 18+, hold a Delaware driver's license and 90 days of Delaware residency (franchised dealers exempt), and pass a State Bureau of Identification fingerprint/criminal-history check.
How do temporary tags work for Delaware dealers?+
Delaware uses a mandatory print-on-demand temporary-tag system — dealers must keep a computer and laser printer on-site and issue temp tags through the DMV dealer portal. Motorcycle dealers are exempt from print-on-demand, wholesalers may not issue temp tags at all, and auctions may issue 30-day temporary plates after verifying a valid license and insurance.
Data verified 2026-07-17. Requirements change — confirm with the Delaware Division of Motor Vehicles (DMV), a division of DelDOT before filing.
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