How to Get an Idaho Dealer License

If you’re planning to sell new or used motor vehicles in Idaho, you must first obtain an Idaho Motor Vehicle Dealer License through the Idaho Transportation Department (ITD). The Auto Dealer Services Division oversees licensing, education, and compliance for all vehicle dealers across the state.

Types of Idaho Dealer Licenses

• New Motor Vehicle Dealer License: Allows you to sell brand-new vehicles from authorized manufacturers.
• Used Motor Vehicle Dealer (Retail) License: Permits retail vehicle sales to the public and wholesale transactions to other licensed dealers.
• Used Motor Vehicle Dealer (Wholesale) License: Restricts sales to wholesale transactions only, exclusively between licensed dealers.

Steps to Apply for an Idaho Dealer License

Before submitting your Idaho dealer license application, you must complete the following steps and gather all required documentation:

1. Choose and register your dealership name
2. Register your business with the Idaho Secretary of State
3. Obtain a Vehicle Dealer Performance Bond
4. Secure liability insurance
5. Pay into the Idaho Consumer Asset Recovery (ICAR) Fund
6. Meet all building and zoning requirements
7. Get an Employer Identification Number (EIN) from the IRS
8. Obtain a Seller Permit Number from the Idaho State Tax Commission
9. Fulfill all education requirements
10. Submit your Dealer License Application to ITD
11. Pass the dealership location inspection

Dealership Name Requirements

Your dealership name must be unique and not deceptively similar to any other dealership name in Idaho. To confirm availability, contact Dealer Services at 208-334-8681 or search the Idaho Secretary of State’s business database.

If you plan to operate under a DBA (Doing Business As) name, you must file it as an assumed name through the Secretary of State.

Registering with the Idaho Secretary of State

Visit sos.idaho.gov to register your business entity (LLC, Corporation, etc.), search for available names, and file business formation documents. You may also contact the Secretary of State’s office directly:

Dealer Bond Requirements

• $20,000 bond – for Retail Dealers
• $40,000 bond – for Wholesale Dealers
• $10,000 bond – for Motorcycle, ATV, UTV, and Snow Machine dealers

Dealer bonds protect consumers from financial loss due to dealer misconduct. Bond costs depend on your personal credit score. You can obtain a quote from providers such as idahodealerbond.com.

Insurance Requirements

Idaho law requires that all licensed dealers carry minimum liability coverage of:

• $25,000 – Bodily Injury (one person)
• $50,000 – Bodily Injury (two or more persons)
• $15,000 – Property Damage

An Acord 25 Form must be submitted with your dealer application. The insurance address listed must match the physical address of your dealership.

Idaho Consumer Asset Recovery (ICAR) Fund

Retail dealers are required to pay a one-time $300 fee into the Idaho Consumer Asset Recovery Fund. This fund helps reimburse consumers who experience losses from licensed dealers that go out of business or fail to deliver title and registration documents. Wholesale-only dealers are exempt from this requirement.

Building & Zoning Requirements

To qualify for a dealer license, your business location must meet the following standards:

• An enclosed commercial structure that is accessible and staffed during business hours.
• Local zoning approval from your city or county planning office.
• An office equipped with a desk, locking file cabinet, and phone line.
• A display area large enough to accommodate at least five vehicles, either owned or leased, and separated by physical dividers or barriers.

Supplemental & Temporary Lots

Dealers may apply for supplemental lots if they wish to operate from multiple locations. Each supplemental lot must meet all principal business requirements.

Temporary supplemental lots are permitted for off-site events like auto shows, auctions, or tent sales, but are valid for a maximum of 10 days.

Casual Vehicle Display

Idaho dealers are allowed to display up to six vehicles off-site for up to 30 days. However, these are strictly for display purposes — no sales transactions can take place at these locations. Dealers must notify ITD in advance before setting up any casual display.

Need More Help?

For the most current information on Idaho dealer licensing requirements, visit the Idaho Transportation Department’s Dealer Licensing page or call 208-334-8681.