The Complete Utah Dealer License Guide

Is launching a car dealership in Utah on your mind? If you’re considering this business venture, the path to realizing it starts with obtaining a Utah dealer license. 

In order to get licensed, you have to fulfill a list of criteria imposed by state authorities. They ensure you are a suitable candidate for the job of an auto dealer. 

In the current guide, you can find out the most important information about getting the necessary Utah dealer license smoothly. 

1. Find out the right auto dealer license type 

The licensing body is the Motor Vehicle Enforcement Division at the Utah State Tax Commission. It issues the following Utah car dealer license types that depend on the exact activities permitted:  

• New motor vehicle dealer 
• Used motor vehicle dealer
• Special equipment dealer
• New motorcycle, off-highway vehicle and/or small trailer dealer
• Used motorcycle, off-highway vehicle and/or small trailer dealer
• Salvage Acquisition
• Body shop
• Dismantler
• Crusher 

2. Inform yourself about the Utah dealer license requirements

When you have selected the license type that you want to obtain, it’s time to get acquainted with the licensing criteria. Utah auto dealers have to fulfill the following:

• Information about owners, partners and corporate officers
• Business entity information
• Photos and information about your business location and sign
• Photos of owners, partners and corporate officers
• Fingerprint Waiver Form
• Attendance of an 8-hour orientation course for all owners and officers
• Franchise letter from manufacturer authorizing sales (for new vehicle dealers only)
• Surety bond

3. Prepare your documents

Besides meeting the requirements listed above, you have to fill in the Bonded Motor Vehicle Business Application form (TC-301). 

There are a couple of additional documents that you have to obtain from other state authorities as well:

• Standard fingerprint card filled and verified by a local law enforcement agency
• Sales tax license from the Utah State Tax Commission
• Trade name from the Department of Commerce

For a full overview of all requirements, you can consult the How to Become a Dealer (TC-300) document. 

4. Get the required Utah auto dealer bond 

Most applicants for a dealer license have to obtain a surety bond. It functions as a security mechanism that safeguards the interests of your customers. 

The amounts of the Utah auto dealer bond depend on the license type that you need. They are as follows:

• $75,000 for new or used motor vehicle or large trailer dealers 
• $10,000 for motorcycle or small trailer dealers

You don’t have to pay the whole required amount to get bonded. Instead, you need to cover only a percentage of it, which depends on your personal and business finances. The stronger they are, the lower your premium would be. If your finances are in top shape, the rates you can expect are between 0.75% and 5%. 

5. Apply with your full document set

When you have prepared all of the required paperwork, you have to send it to:

Motor Vehicle Enforcement Division
210 North 1950 West
Salt Lake City, Utah 84134

The fees that you have to cover include:

• $127 licensing fee for new, used and special equipment dealers
• $51 licensing fee for new or used motorcycle, off-highway vehicle and/or small trailer dealers 
• $20 fingerprint fee per person for each owner, partner or corporate officer
• $12 dealer plate fee (maximum 2) 

Within 5 to 10 days after your application set reaches the Division, you will get an on-site inspection of your business location. If you meet all requirements, you will receive your license. 

6. Undergo the license renewal annually

The licensing period ends on June 30th of each year. To prolong your legal operations, you have to undergo the Utah dealer license renewal. You need to renew your surety bond and pay the required licensing fees. 

Would you like to obtain more information about getting a Utah auto dealer license and bond? Don’t hesitate to contact us at 877.514.5146.