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New Dealer Checklist

Getting Your Idaho Dealer License: A Step-by-Step Guide

Congratulations on taking the first step towards becoming a licensed car dealer in Idaho! This guide will explain the 11 requirements you need to fulfill to get your license. Don't worry, we'll break it down into manageable steps.

  1. Education: Take our ITD-approved dealer education pre-licensing course! It covers the state and federal laws and rules required to open and maintain a retail or dealership license. Register now!
  2. Dealership Name:
    • Check for name availability : Before applying, call the Dealer Team (208-584-4343 Ext. 5) to ensure your chosen name isn't already in use.
    • File your D.B.A. (optional): If your dealership has a "doing business as" name, register it with the Secretary of State's office (208-334-2300) for businesses formed as corporations, LLCs, etc.
  3. Vehicle Dealer Bond:

    4. This is a financial guarantee to protect consumers. The bond amount depends on your dealership type:

    • Retail: $20,000
    • Wholesale: $40,000
    • Only Motorcycles/ATVs/UTVs/Truck Campers/Snowmobiles: $10,000

    You can get a bond from a licensed surety company in Idaho, or use cash/certificate of deposit.

  4. ICAR Fund (Retail Only):

    5. Retail dealers contribute $300 to the Idaho Consumer Asset Recovery Fund to help protect customers in case a dealer goes out of business.

  5. Building and Zoning:
    • Your dealership needs to be a permanent commercial building that meets building codes and zoning regulations.
    • Obtain a letter of zoning approval or have a zoning official sign your dealer application. This is also required for off-site sales, location changes, and additional sales areas.
  6. Application for Idaho Vehicle Dealer License:
    • Fill out the application completely. Processing takes about 30 days.
    • Include details like:
      • All owners/corporate officers
      • Personal history for each owner/officer 
      • Dealership name and location (matching the information on your bond)
      • Signatures from all owners/officers (notarized)
  7. Seller Permit Number (Retail Only):

    8. Retail applicants need a seller's permit number issued by the Idaho Tax Commission (call (208) 334-7660 or (800) 972-7660).

  8. Employer Identification Number (EIN):

    9. Include your federal government-issued EIN with your application.

  9. Liability Insurance:

    10. Provide a liability insurance certificate that covers "any auto" or complies with Idaho Code 49-1608A. Minimum coverage is:

    • $25,000 bodily injury per person
    • $50,000 bodily injury per accident
    • $15,000 property damage
  10. Dealership Location Inspection:

    11. Once your application is approved, a Motor Vehicle Investigator will contact you to inspect your dealership location. They'll verify things like the location, display area, office setup, signage, and provide instructions on titling documents.

  11. Dealer Owner and Salesperson Application:

Complete form ITD-3171 for all owners and salespeople. This form acts as a temporary 60-day license once submitted to ITD with fees.


Your Dealership's Headquarters: Key Requirements

This covers the main requirements for your dealership's headquarters (also called the "principal place of business"). Other locations you might have are called "supplemental lots" and have some additional rules. Here's what you need to know about your headquarters:

Declared Hours:

  • Publish your hours of business and have a licensed salesperson available at your location.

Dealership Sign:

  • Make sure your sign is clear and easy to read from the main road.
    • Minimum size: 24 square feet (think 3ft x 8ft or 4ft x 6ft)
    • Minimum lettering size: 4 inches square
    • Include your dealership name, address, and dealer number.
      • Wholesale dealers can paint their sign on the office window next to the entrance.

Dealership Office:

  • This should be a dedicated space for your business operations. It needs to have:
    • A lockable office to store important documents.
    • A desk and filing cabinet for organization.
    • A phone listed in the general directory.
      • Calls should be answered in your dealership's name. You can forward them or use an answering machine.

Display Area (Retail Dealers Only):

  • You need a space big enough to showcase at least five vehicles/vessels you're licensed to sell.
  • This area should be:
    • Next to your dealership office.
    • Owned or leased by you.
    • Separated from other businesses by barriers or signage.
    • Physically divided from another dealership's display area if you're located side-by-side (think ropes, chains, etc.).

Restrictions on Dealership Use:

  • Your headquarters should be primarily used for your auto dealership business.
  • The office cannot be located in a hotel, rooming house, apartment building, or single/multiple-unit dwelling house.
    • Exception: If the entire ground floor is commercially used and your office is there too.