How to Get a Dealer License in Hawaii
In Hawaii, dealer licensing runs through the Hawaii Motor Vehicle Industry Licensing Board (DCCA — Professional & Vehicle Licensing Division). To get a used car dealer license in Hawaii you'll need a registered business, a compliant location, a $25,000–$200,000 (surety bond is a fallback) 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 Hawaii auto dealer license requirements, real costs, and the exact steps — in plain English. Rules change, so verify everything against the Hawaii Motor Vehicle Industry Licensing Board (DCCA — Professional & Vehicle Licensing Division)'s current pages before you file.
- Agency
- Hawaii Motor Vehicle Industry Licensing Board (DCCA — Professional & Vehicle Licensing Division)
- Surety bond
- $25,000–$200,000 (surety bond is a fallback)
- License term
- Biennial — all licenses expire June 30 of each even-numbered year regardless of issue date, and fees are not prorated. Dealer (MVD/MVB) licenses that miss the deadline cannot be renewed late or pay a late fee; the licensee must re-apply as a brand-new applicant (bond/line of credit, financials, premises re-inspection).
- Sales threshold
- Hawaii uses an 'engaged in the business' test rather than a simple annual vehicle count — a license is required for anyone who engages in the business of selling or negotiating the purchase of motor vehicles for profit (HAR §16-86-6). Verify the exact statutory definition in HRS §437-1.1.
- Pre-licensing
- No coursework, but salespersons must take and pass a licensing examination (HRS §436B-9). Hawaii is exam-based rather than education-based for salespersons; there is no documented separate classroom-hours requirement.
License types in Hawaii
| License type | What it covers |
|---|---|
| Motor Vehicle Dealer (new and/or used) | Selling new and/or used vehicles — a new-vehicle dealer license authorizes selling both new and used; sub-tiered by new, used, and motorcycle/scooter. |
| Motor Vehicle Salesperson (CS) | Any individual engaged in sales activity, explicitly including Finance & Insurance (F&I) staff — requires passing a licensing exam. |
| Motor Vehicle Branch Location (MVB) | An additional lot or location of an existing licensed dealer. |
| Motor Vehicle Auction (AUC) | Vehicle auctions and auctioneers, bonded on the same terms as a new-vehicle dealer. |
What it costs
| Item | Cost | Notes |
|---|---|---|
| Used Vehicle Dealer license (Honolulu) | $393–$588 | Total varies by which half of the biennium you apply in; includes app, license, Compliance Resolution Fund, and half-renewal |
| New Vehicle Dealer license (Honolulu) | $611–$1,172 | Higher when applying in the first half of the biennium (includes half-renewal) |
| Salesperson license (CS) | $107–$194 | Includes app, license, and Compliance Resolution Fund fee; +$20 for a temporary license |
| Line of credit or surety bond | Varies | Line of credit is required first; bond premium (if used) is a fraction of the $25k–$200k face value |
| General Excise Tax registration (Form BB-1) | Varies | Dealers register for GET on gross receipts — Hawaii has no sales tax |
Step by step
- Form the business and register with the DCCA Business Registration Division (Certificate of Good Standing / trade name).
- Secure the premises — sign a lease of at least one year for a compliant lot (office, 3 display stalls or showroom, restrooms) and prepare the self-inspection report, site plan, and photos.
- Obtain financing security — an inventory/flooring line of credit ($500k new / $50k used), or a tiered surety bond if a line of credit cannot reasonably be obtained; prepare a CPA-signed financial statement.
- Complete the dealer/auction application (MOVE-12) and attach the Dealer Sales & Service Agreement for franchises.
- Submit the application, supporting documents, and fees to the Board (allow 15–20 business days for a complete application).
- License each salesperson separately (application, employing-dealer certification, exam, fees), register for GET, then renew biennially by June 30.
Premises & temp tags
Location: You must have a real, permanent, inspected lot before licensing: an office that is secured for customer files and not shared with any other business, a showroom or a display area with at least 3 stalls, and on-site restrooms. You submit a self-inspection report with a labeled site plan and photographs, plus a lease of at least a one-year term signed by both parties (a letter is not sufficient) and a landlord certification of the zoning.
Temp tags / plates: Temp tags and plates are handled by the counties (Honolulu, Hawaii, Maui, Kauai), not the state Board. Buyers must transfer title and register within 30 days of purchase; licensed dealers process transfers through the county 'Dealer Express' channel and operate on county-issued dealer plates. Point buyers to their county DMV for specifics.
Hawaii-specific things to know
- Hawaii has no sales tax — it levies a General Excise Tax (GET) on the dealer's gross receipts, filed on Form G-45 periodically and G-49 annually, plus a Form G-27 use-tax return for imported vehicles (GET is commonly 4%, or 4.5% on Oahu with the county surcharge — confirm the current rate at tax.hawaii.gov).
- Line-of-credit-first, bond-second: unlike most states with a fixed dealer bond, Hawaii requires an inventory/flooring line of credit as the primary security and only accepts a surety bond as a fallback.
- Two-government split — licensing is state/board-run and exam-based, but titling and registration are county-run; a dealer deals with the DCCA for the license and each county DMV for plates, titles, and transfers.
- No late renewal for dealers — missing June 30 of an even year forces a full new application (bond/line of credit, financials, premises re-inspection), not a simple reinstatement.
Official Hawaii resources
- DCCA — Motor Vehicle Industry Licensing Board ↗
- DCCA — Motor Vehicle Forms & Publications ↗
- Motor Vehicle Statutes & Rules (HRS Ch. 437 / HAR Ch. 86) ↗
Hawaii dealer license FAQ
How much does a dealer license cost in Hawaii?+
Used Vehicle Dealer license (Honolulu): $393–$588; New Vehicle Dealer license (Honolulu): $611–$1,172; Salesperson license (CS): $107–$194; Line of credit or surety bond: Varies; General Excise Tax registration (Form BB-1): Varies. Plus the $25,000–$200,000 (surety bond is a fallback) surety bond (you pay a small annual premium on that, not the full amount).
How big is the dealer bond in Hawaii?+
Hawaii requires a $25,000–$200,000 (surety bond is a fallback) surety bond. Hawaii's PRIMARY security is an inventory/flooring line of credit ($500,000 for new-vehicle dealers, $50,000 for used or motorcycle dealers). A surety bond is accepted only 'when a line of credit cannot reasonably be obtained' (HAR §16-86-12), tiered by volume: $25,000 for used dealers under 60 units/month, $100,000 for used dealers at 60+/month, $50,000 or $200,000 for new-vehicle dealers, and $10,000 for motorcycle/scooter dealers. This line-of-credit-first structure surprises mainland operators.
Do you need a physical lot to get a dealer license in Hawaii?+
You must have a real, permanent, inspected lot before licensing: an office that is secured for customer files and not shared with any other business, a showroom or a display area with at least 3 stalls, and on-site restrooms. You submit a self-inspection report with a labeled site plan and photographs, plus a lease of at least a one-year term signed by both parties (a letter is not sufficient) and a landlord certification of the zoning.
How many cars can you sell in Hawaii without a dealer license?+
Hawaii uses an 'engaged in the business' test rather than a simple annual vehicle count — a license is required for anyone who engages in the business of selling or negotiating the purchase of motor vehicles for profit (HAR §16-86-6). Verify the exact statutory definition in HRS §437-1.1.
How long is a Hawaii dealer license valid?+
Biennial — all licenses expire June 30 of each even-numbered year regardless of issue date, and fees are not prorated. Dealer (MVD/MVB) licenses that miss the deadline cannot be renewed late or pay a late fee; the licensee must re-apply as a brand-new applicant (bond/line of credit, financials, premises re-inspection).
Is dealer training or an exam required in Hawaii?+
No coursework, but salespersons must take and pass a licensing examination (HRS §436B-9). Hawaii is exam-based rather than education-based for salespersons; there is no documented separate classroom-hours requirement.
How do temporary tags work for Hawaii dealers?+
Temp tags and plates are handled by the counties (Honolulu, Hawaii, Maui, Kauai), not the state Board. Buyers must transfer title and register within 30 days of purchase; licensed dealers process transfers through the county 'Dealer Express' channel and operate on county-issued dealer plates. Point buyers to their county DMV for specifics.
Data verified 2026-07-17. Requirements change — confirm with the Hawaii Motor Vehicle Industry Licensing Board (DCCA — Professional & Vehicle Licensing Division) before filing.
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