How to get your license: Motor vehicle wholesaler
Law changes went into effect March 29, 2016
The Washington State legislature passed a bill (ESSB 6606) modifying the laws relating to wholesale vehicle dealers.
What are the changes?
- A wholesale vehicle dealer is now defined as "a vehicle dealer who buys vehicles from or sells vehicles to other Washington licensed vehicle dealers."
- The bill also changed the place of business requirements for wholesale dealers. A wholesale vehicle dealer's business location can have "no more than two other wholesale or retail vehicle dealers in the same building."
Who needs a license?
Any business that buys from or sells to Washington licensed dealers any of these types of vehicles:
- Used cars
- Used trucks
- Used motor homes
If you don’t have a wholesaler license, it’s illegal to:
- Sell more than 4 vehicles registered to you in any 12 months.
- Buy and sell vehicles for the purpose of making a profit.
- Sell any number of vehicles that aren’t registered to you.
Business site requirements
Your business site must:
- Always have a telecommunications system that answers and/or relays incoming calls, such as:
- an answering service,
- telephone answering machine, or
- voice or beeper pagers.
- Have an onsite area to maintain books, records, and files.
- Have clearly identified records, office facilities, and inventory physically separated from any other vehicle dealer sharing the same location.
- Have a permanently affixed exterior sign on the land or building with the business name and business type (such as auto wholesaler).
- Have an office facility in a commercial building in WA and meet local zoning and land use laws.
- Have no more than 3 wholesale or retail dealers in one building.
- List all storage facilities for inventory with us (DOL).
You’re not required to maintain normal business hours or a phone book listing.
To get a license, you must have all the following:
- $30,000 bond. Available through many insurance companies.
- Copy of the business site property tax statement or rental/lease agreement.
- The following forms:
- Business License Application
- Vehicle, Vessel, Vehicle Manufacturer, Registered Tow Truck Operator, or Wrecker Business Bond
- Vehicle Dealer Manufacturer Addendum
- Financial/Source of Funds Statement
- Sole proprietor or partnership, each person submits a separate form.
- Corporation, LLC, or LLP, submit 1 form that includes only the assets and liabilities of the business.
- Personal Criminal History Statement – 1 for each owner, partner, corporate officer and member of the business.
How to apply
Mail all materials and fee with a check or money order payable to Department of Revenue:
State of Washington
Business Licensing Service
PO Box 9034
Olympia, WA 98507-9034
Use our Dealer Checklist to make sure you’ve included everything in your application.
Questions? Need help?