How to Get a Dealer License in Rhode Island
In Rhode Island, dealer licensing runs through the Rhode Island Division of Motor Vehicles (DMV) — Dealers' License and Regulations Office. To get a used car dealer license in Rhode Island you'll need a registered business, a compliant location, a $50,000 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 Rhode Island auto dealer license requirements, real costs, and the exact steps — in plain English. Rules change, so verify everything against the Rhode Island Division of Motor Vehicles (DMV) — Dealers' License and Regulations Office's current pages before you file.
- Surety bond
- $50,000
- License term
- Annual — the license year and the surety bond both end December 31, so the renewal application plus a fresh $50,000 bond must be filed yearly, and plate allocation is re-reviewed against the prior year's sales.
- Sales threshold
- Selling or brokering 5 or more motor vehicles in a calendar year makes you a dealer requiring a license (280-RICR-30-20-1 §1.5) — more than 4 in one calendar year triggers the requirement.
- Pre-licensing
- None — Rhode Island imposes no dealer pre-licensing education course or exam. Qualification is instead gated by a CPA-prepared financial statement, a $50,000 line of credit, a $50,000 surety bond, BCI background checks on all principals, and a hearing before the Dealers' License and Hearing Board.
License types in Rhode Island
| License type | What it covers |
|---|---|
| Used Vehicles Only | Retail sale of used motor vehicles; the business name must contain the words 'Auto Sales.' |
| New & Used Vehicles | Franchised new-vehicle sales plus used, requiring a manufacturer/distributor franchise agreement and the statutory protest window. |
| New Vehicles Only (Franchised Dealer) | New vehicles of the brands approved on the license; a franchise is required. |
| Motorcycle / Moped / Scooter Dealer | Dealer plates and premises restricted to mopeds, motorcycles, or scooters, with a smaller premises minimum. |
What it costs
| Item | Cost | Notes |
|---|---|---|
| Dealer license fee | $303.50 | Paid within 30 days after the Dealers' License and Hearing Board grants the license |
| Surety bond (annual) | $50,000 face | Premium you pay is a fraction of the face amount, priced by the surety on credit — not a state fee |
| Line of credit | $50,000 | Must be secured from a financial institution in the dealership's name — a cost of qualifying, not a state fee |
| BCI criminal background check | Varies | Each owner/partner/officer files a Bureau of Criminal Identification check with the RI Attorney General's office |
Step by step
- Pre-approve the name and location with the Dealers' License and Regulations Office (used dealerships must include 'Auto Sales' in the name).
- Assemble the financial package: application, CPA financial statement, and employee list (notarized), plus a $50,000 line of credit and a $50,000 surety bond in the business name.
- File BCI criminal checks for each owner/officer and gather entity documents (articles, officer minutes, fictitious-name filing, Certificate of Good Standing).
- Prove the premises: deed or one-year lease (2,400 sq ft building + 2,400 sq ft lot), zoning approval or municipal second-hand license, and photos of the building and lot.
- Complete the DMV investigation and hearing before the Dealers' License and Hearing Board.
- Within 30 days of approval, pay the $303.50 fee, secure a sales-tax permit, submit the dealer-plate insurance filing, and make a finalize appointment to receive the license and plates.
Premises & temp tags
Location: A dedicated, heated commercial building used exclusively for the vehicle business: at least 2,400 sq ft of enclosed heated floor space (office plus service/repair area) at ground level, plus at least 2,400 sq ft of outdoor lot display area. A service and repair shop, a sign of at least 24 sq ft, a business telephone, proof of ownership (deed) or a lease of at least one year, and proper municipal zoning approval for auto sales are all required. Moped/motorcycle/scooter-only dealers have a 1,200 sq ft building minimum.
Temp tags / plates: Dealers issue 20-day temporary plates to buyers; only authorized W-2 employees listed on the Dealers' Employee Authorization form (max three) may pick up temporary plates from the DMV. Dealers receive 3 dealer registration plates at initial licensing, then 3 additional plates per 100 sales per year, reviewed annually at renewal.
Rhode Island-specific things to know
- Every used-car dealership's licensed name must contain the words 'Auto Sales' — an easy-to-miss rule that blocks name approval.
- Twelve municipalities (including Providence, Cranston, Warwick, Pawtucket, and Woonsocket) require a separate second-hand license on top of the state license.
- No consignment sales — the dealer must own and title every vehicle it sells, and the business must operate full-time.
- Each used vehicle must pass a fresh RI safety inspection within 90 days or 500 miles before sale, and a 'SOLD AS IS' windshield notice is required whenever the used-car warranty is waived.
Official Rhode Island resources
- RI DMV — Dealer/Business Forms ↗
- RI DMV — Registrations, Plates & Titles ↗
- RI Dealer Rules & Regulations (280-RICR-30-20-1) ↗
Rhode Island dealer license FAQ
How much does a dealer license cost in Rhode Island?+
Dealer license fee: $303.50; Surety bond (annual): $50,000 face; Line of credit: $50,000; BCI criminal background check: Varies. Plus the $50,000 surety bond (you pay a small annual premium on that, not the full amount).
How big is the dealer bond in Rhode Island?+
Rhode Island requires a $50,000 surety bond. Per 280-RICR-30-20-1 and the New Dealership packet, all motor-vehicle dealers post a $50,000 surety bond payable to the Dealers' License and Regulations Office; it is filed annually and runs to December 31 regardless of issue date. This is in addition to a required $50,000 line of credit and a CPA-prepared financial statement showing $50,000+ in net tangible assets.
Do you need a physical lot to get a dealer license in Rhode Island?+
A dedicated, heated commercial building used exclusively for the vehicle business: at least 2,400 sq ft of enclosed heated floor space (office plus service/repair area) at ground level, plus at least 2,400 sq ft of outdoor lot display area. A service and repair shop, a sign of at least 24 sq ft, a business telephone, proof of ownership (deed) or a lease of at least one year, and proper municipal zoning approval for auto sales are all required. Moped/motorcycle/scooter-only dealers have a 1,200 sq ft building minimum.
How many cars can you sell in Rhode Island without a dealer license?+
Selling or brokering 5 or more motor vehicles in a calendar year makes you a dealer requiring a license (280-RICR-30-20-1 §1.5) — more than 4 in one calendar year triggers the requirement.
How long is a Rhode Island dealer license valid?+
Annual — the license year and the surety bond both end December 31, so the renewal application plus a fresh $50,000 bond must be filed yearly, and plate allocation is re-reviewed against the prior year's sales.
Is dealer training or an exam required in Rhode Island?+
None — Rhode Island imposes no dealer pre-licensing education course or exam. Qualification is instead gated by a CPA-prepared financial statement, a $50,000 line of credit, a $50,000 surety bond, BCI background checks on all principals, and a hearing before the Dealers' License and Hearing Board.
How do temporary tags work for Rhode Island dealers?+
Dealers issue 20-day temporary plates to buyers; only authorized W-2 employees listed on the Dealers' Employee Authorization form (max three) may pick up temporary plates from the DMV. Dealers receive 3 dealer registration plates at initial licensing, then 3 additional plates per 100 sales per year, reviewed annually at renewal.
Data verified 2026-07-17. Requirements change — confirm with the Rhode Island Division of Motor Vehicles (DMV) — Dealers' License and Regulations Office before filing.
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