How to Get a Connecticut Dealer License [2020 Guide]

Published: Jul 10, 2020
connecticut dealer license

 

Do you want to launch a car dealership in Connecticut? Before you can start selling motor vehicles in the state, you have to obtain a Connecticut dealer license. 

The licensing process entails that you meet the requirements of the state Department of Motor Vehicles. This ensures that you will operate in legal compliance. 

In the guide below, you can find out the exact steps you need to take to start your auto dealership. 

1. Find out the right auto dealer license type 

First you need to select the type of Connecticut auto dealer license that matches your intended activities. The possibilities are:

  • New Vehicle Dealer
  • Used Vehicle Dealer
  • General Repairer License
  • Limited Repairer License

2. Get to know the Connecticut dealer license requirements

How to get a dealer license in CT? The Connecticut Department of Motor Vehicles (DMV) oversees the auto dealership industry in the state. You have to fulfill the criteria that it sets for the exact license type that you need. 

There are slight differences in the requirements for each type of license, but the main ones include:

  • Business entity information and formation documents 
  • Personal information about owners, partners and principal officers
  • Signature from a Fire Marshal and a Building Official on the application form
  • Personnel List (Form K-26)
  • Drawing Specifications (Form K-93)
  • Request for Marker Plates (Form K-6)
  • Completed State of Connecticut Department of Energy & Environmental Protection (DEEP) Referral sheet
  • Vehicle Storage Rates Requirements Application (Form K-89)
  • License Inspection Application (Form K-8)
  • Insurance certificate  
  • Franchise Appointment Certificate and Dealer Agreement and Standard Provision (for new car dealers only)

The full list of criteria can be consulted in the Procedure for Licensing document of the DMV. 

3. Prepare your paperwork

connecticut dealer licenseTo get started with the application, you have to complete the Connecticut dealer or repairer license application form (Form K7).

You also have to obtain the following documents from other institutions:

  • Employer Identification Number (EIN) from the IRS
  • Business entity registration from the Connecticut Department of Economic and Community Development
  • Sales tax number from the Connecticut Department of Revenue Services
  • Certificate of Approval for Proposed Location from your local authorities

4. Obtain the necessary Connecticut auto dealer bond 

All applicants for a Connecticut auto dealer license or repairer license have to get a surety bond. It is a security mechanism that protects your customers from potential illegal actions on your side. 

The Connecticut auto dealer bond amounts vary depending on your license type:

  • New and Used Vehicle Dealer  – $50,000
  • General and Limited Repairer License – $5,000

You need to supply the bond in the official form (K-158).

In order to get bonded, you have to pay a small fraction of the required amount. It is called the bond premium and depends on the strength of your finances. The factors that are considered include your personal credit score, business finances, and any fixed and liquid assets you may have. The rates that you can expect if these indicators are in good shape are in the range of 0.75% to 5%

Want to see the exact cost of your auto dealer bond? Fill in the short form below! 

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5. Apply with your full document set

Once you’ve completed the application form and obtained all necessary paperwork, you have to mail them to:

Department of Motor Vehicles

Dealers and Repairers Section

60 State Street, Wethersfield

CT 06161-2011

The licensing fees for the different CT dealer license types are the following:

  • $140 application fee for all license types (at the time of applying) 
  • New Vehicle Dealer – $700
  • Used Vehicle Dealer – $560
  • General or Limited Repairer – $340

The dealer or repairer plates cost $140 per plate, while the safety plate is $5. 

6. Renew your license

All the CT car dealer license types are active for 2 years. If you wish to extend your licensure beyond that period, you have to renew your license before it has expired. 

Have more questions about the Connecticut auto dealer license and bond requirements? You can reach us at 877.514.5146.

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Robin Kix

Robin Kix

Robin Kix is currently the Renewal Department Manager. Since joining Lance Surety in 2014, she has helped thousands of businesses throughout the nation remain compliant at the federal, state and local level. She has significant experience supporting commercial bond lines, particularly in the automobile, transportation and construction industries. Robin and her team work together to create a positive customer service experience at the time of every policy renewal, whether that be finding the best pricing or offering additional assistance.