Licensing Requirements

In order to become a licensed automotive dealer in the state of Idaho, you must undergo a series of steps―a long series of steps. For starters, you will want to determine whether your activity warrants the need for a license. Simply, if you sell five or more vehicles/vessels in a calendar year, and if they each require a title, then you are required by law to possess an Idaho dealer license.

Step 1: Determine Whether You Need a Dealer License

If the following scenarios describe your actions, then you surely need permission to operate as a dealership:

• I solicit the sale, exchange, or consignment of vehicles/vessels that are not titled in my name.

• I sell, display for sale, exchange, or consign vehicles/vessels that are not titled in my name, as the displayer.

• I sell, display for sale, exchange, or consign five or more vehicles/vessels during the year, even though their titles do not bear my name.

• I engage in the business of selling, exchanging, or consigning vehicles/vessels, or participate in any other actions that could commonly be construed as selling or exchanging vehicles/vessels.

• I display vehicles/vessels for sale, exchange, or consignment on property that is neither owned nor controlled by the owners of the said vehicles/vessels.

If the next scenarios do in fact describe your actions, consider yourself off the hook. There is no need to obtain a dealership license if you do the following:

• I sell fewer than five vehicles/vessels that bear my name on their titles per year.

• I am part of an insurance company, financial institution, or public utility company that disposes of any vehicle/vessel incidental to typical business activities.

• I manufacture or sell specialty vehicles, including fire trucks, fire engines, urban transit buses, ambulances, street sweepers, and hazardous material response vehicles.

Step 2: Name Your Dealership

Some may consider this the fun part (savor this moment; the rest of the tasks are a bit tedious). Before you apply as a dealer or before you obtain a dealer bond, you have to come up with a name for your dealership that is nowhere near the name of an already existing one. Call the Dealer Team at (208) 334-8681 to ensure that your proposed dealership's name is not deceptively similar to that of another.

Any dealership name with a D.B.A. (doing business as) must be filed as an assumed name with the Secretary of State's office, according to Section 53-504 of the Idaho Code. If a corporation, limited liability company, or a limited liability partnership owns the dealership, then you must go through the Secretary of State to submit verification. Call (208) 334-2300 for details.

Step 3: Obtain a Vehicle Dealer Performance Bond

You are required as a vehicle/vessel dealer by Idaho Code to obtain this bond and file it with the Department Of Transportation (DOT). Exact ownership, D.B.A., and dealership location must be shown on the bond exactly as it is listed on your Application for Dealer License.

Unless you are a motorcycle, ATV, or snow machine dealer (which only requires a $10,000 bond) you must obtain a $20,000 bond from a corporate surety licensed to do business within Idaho. Your second option is to post a bond in the form of cash or a certificate of deposit. This will remain on file for five years after your dealership ceases operations as a business. It is important to keep this bond in effect during the full licensing period, or until your license becomes invalid.

Step 4: Obtain a Building and Zoning

You must have a permanent structure with a foundation, built to meet applicable building codes, in which to carry out your business transactions. It must be located in an area zoned by local authorities as an acceptable location to do such business.

To determine whether your building stands in an appropriately zoned area, you must either get a zoning official to sign your license application or obtain a letter of zoning approval. The same goes for off-site sales, location changes, and supplemental lots.

Step 5: Get Schooled

If you are hoping to obtain a license for a new dealership selling used vehicles, then you must pass a written test before the state will issue the license.

If you are simply renewing your license to operate a used-vehicle dealership, you will have to undergo at least four hours of education acceptable to the department before you can renew your license.

You may send a manager in your place, but if he/she quits, you must have another manager or employee fulfill the annual education requirement. This does not apply to franchised dealers and wholesalers.

Step 6: Complete the Idaho Vehicle Dealer License Application

Round up all the names of owners, partners, directors, and corporate officers involved in the dealership, and have each provide a personal history.

Inactive corporate officers need not obtain identification cards. Make sure the name of the dealership and its address both match what is listed on the bond you will submit with your application. Once all owners, partners, officers, and directors sign the application in the presence of a notary, and you have submitted all required materials, give the department 30 days to process your application.

Step 7: Get Your Dealership Inspected

Once your application is approved, you will need to have your place of business inspected. First, the Dealer Licensing Team will contact the Motor Vehicle Investigator for your district. Then the investigator will contact you to make an appointment to inspect your dealership location. Once he/she verifies the location, display area, office, and sign, he/she will instruct you on how to complete the appropriate documents for titling.

Side Notes

Franchises

You are required to obtain a letter of franchise approval from the manufacturer if your dealership will sell new vehicles/vessels. This goes for every type of new vehicle/vessel sold.

Personal History and Salesman Application:

When you, the owner, hire a new sales rep, remember to complete an application (ITD-3171) for him/her. The NCR copy or photocopy of the application is his/her 30-day temporary license.

Department of Finance Requirements

Fees

• Initial Dealer License $115

• Owner/Officer ID $0; add $10 if a picture is taken

• Salesperson ID $15; add $10 if a picture is taken

• Dealer plates $17; includes $2 mailing fee

• Temporary 30-day registrations (out-of-state residents only) $100; books of 20 each

• Supplemental Lot License (per location) $25

• Temporary Supplemental Lot License (off site) $25; $50 for two or more dealers

• License reprints $10