Delaware Chronological Dealer Pre-License Checklist

  1. Create Delaware Business Entity - You must establish your business entity before you apply for your license. Before you apply for your license you must establish a business entity with the state of Delaware, obtain an employer ID number, a yearly dealer business license from the Delaware Department of Finance, Division of Revenue, and register with the Prothonotary's Office in the county you are located. This process can be handled for you for a minimal fee. Just click on the "Create Delaware Business Entity" link then click the yellow "Start a Business Now" button, then select "Delaware" from the drop down menu and select the options that are best for you. If you have any questions you will be connected to Tracy Newman our Business Entity Registration Specialist.
  2. Obtain Dealer Surety Bond - Use this link for our Automated Bond Quoting System. With good credit your bond should cost around $200 to $300. With bad credit you can make low monthly payments on your bond. If you click on the "Obtain Dealer Surety Bond" link you will be connected to my automated surety bond quoting system that will match your credit score with the bond company that specializes in issuing bonds to dealers with your credit score. I believe this will lead to the lowest bond quote on the first quote. Use the link to quote and bond in moments. (Please note: You need a $25,000 Motor Vehicle DealerObligee: State of Delaware, Division of Revenue for your dealer license)
  3. Find Location - Delaware allows wholesale dealers to operate out of their home with no dedicated office, lot, or sign. Wholesale dealers must also purchase an additional wholesale license for $75.  Location must be zoned for a dealer license. The State of Delaware requires retail dealers to an office space, room for at least 5 vehicles, and a sign on the building that measures at least 24 x 36 inches that lists the dealership name. You must also have a working phone installed in the office and a computer/laser printer on premises for print on-demand temp tags. A licensed Delaware dealer is not permitted to share a lot, office or location with another dealer.
    Use Google or an AI search tool using terms such as Delaware Dealer Office, Dealer Lot For Rent or Sale. You can also check Craigslist, LoopNet, Crexi, CommercialSearch, and Rightmove. Or just drive around your area in places you do not normally go. There is a location for your new business.
  4. Fingerprints - You must be fingerprinted to show that you have not been involved in motor vehicle crimes. The State wants to ensure they are not licensing anyone with past automotive crimes. You  must register for fingerprints at IDentoGo and enter the service code 27RVGT. After you have registered at IDentoGO you will have your fingerprints taken a an electronic kiosk at one of two locations in the State of Delaware. The kiosks are located at the State Bureau of Identification – Dover 600 S. Bay Road, Suite 1 Dover, Delaware 19901 and the State Bureau of Identification – Georgetown Thurman Adams Center 546 S. Bedford Street Georgetown, Delaware 19947. You must have the correct IDentoGO Service code which is 27RVGT . If you have questions about the fingerprints contact State Bureau of Identification at (302) 739-2134 or email dsp_backgroundcheckinquiries@delaware.gov .
  5. Obtain Business Insurance-The State of Delaware requires dealers to be insured at all times. The minimum amount required for dealers is $15,000 for any 1 person and $30,000 for all persons injured in any 1 accident.The proof of coverage must specify either the number of dealer plates insured or state "All Owned Vehicles". Your insurance agent will be able to explain the coverages more in depth.
  6. Complete Dealer License Application MV-29 - When you have completed all of your pre-license steps you must complete MV-29 and mail with all other documents to Delaware Division of Motor Vehicles (DMV) Dover Administration Office at P.O. Box 698, Dover, DE 19903.
  7. Dealer License is Granted - The State should issue your Dealer License in 30 to 45 days. If you have any dealer licensing questions you send an email to DOTDealerLicensing@Delaware.gov . Once your dealer license is issued, you can then enter dealer auctions, buy vehicles at wholesale, and sell them at retail .

    8.  

    Thank You Very Much!

    Good luck with your new business,
    Delus Johnson

    Delus Johnson