Getting a used car dealer license in Connecticut

In Connecticut, used-car dealers are licensed by Connecticut DMV Dealers and Repairers Licensing Unit.

Before your first retail sale you’ll need a $60,000 surety bond and a business location that meets the state’s rules. The state also inspects the location.

This page gathers what a new independent lot needs, each fact linked to the official source it came from.

Sources checked

At a glance

Issued by
Connecticut DMV Dealers and Repairers Licensing Unit portal.ct.gov (source, opens in a new tab)
Surety bond
$60,000 motor vehicle dealer bond. portal.ct.gov (source, opens in a new tab) That’s the bond’s face amount, not what you pay: a surety company charges a yearly premium, usually a small percentage of it, set mainly by your credit.
Official fees
$140 application + $560 two-year used-dealer license = $700; dealer plate $140 + $5 safety fee = $145, initial maximum three. portal.ct.gov (source, opens in a new tab)
Site inspection
Yes: DMV site inspection through K8, following document review; local zoning/building/fire approvals also required. portal.ct.gov (source, opens in a new tab)

Step by step

  1. Make sure you need a used car dealer license

    Connecticut's DMV Dealers and Repairers Licensing Unit issues the used car dealer license. New car dealers, repairers, leasing and rental companies and recyclers hold different licenses, so don't go by their bond amounts or premises exemptions. portal.ct.gov › get-regulated-business-license (source, opens in a new tab) portal.ct.gov › k36pdf.pdf (source, opens in a new tab)

  2. Plan for a repair department

    This is what surprises people. A Connecticut used dealer needs more than a sales lot: a repair department that holds at least two vehicles at once, a qualified mechanic, and generally a waste-oil tank of at least 250 gallons with disposal arrangements, unless an exemption is approved. portal.ct.gov › k36pdf.pdf (source, opens in a new tab)

  3. Get local approvals for the site

    Local zoning, building and fire officials sign the application, and environmental rules may apply. Keep business records on site for two years and post your hours. portal.ct.gov › k36pdf.pdf (source, opens in a new tab)

  4. Register the business

    Prepare the entity or DBA documents and Certificate of Existence if they apply, and a sales tax permit at the same address as the site. portal.ct.gov › k36pdf.pdf (source, opens in a new tab)

  5. Submit the application

    File the notarized K7 application and the K8 inspection application, with a site drawing (K93), the service-of-process agent form (K198), the VIN-etching rate (K200), and photos of the signs and posted hours. Instructions are on form K36. portal.ct.gov › k36pdf.pdf (source, opens in a new tab) portal.ct.gov › get-regulated-business-license (source, opens in a new tab)

  6. Insurance, even without plates

    File the R1325e insurance certificate even if you're not requesting dealer plates. Leaving it out because you don't want plates is a common mistake. portal.ct.gov › k36pdf.pdf (source, opens in a new tab) portal.ct.gov › get-regulated-business-license (source, opens in a new tab)

  7. DMV review and site inspection

    After reviewing the documents, DMV inspects the site. portal.ct.gov › k36pdf.pdf (source, opens in a new tab) portal.ct.gov › get-regulated-business-license (source, opens in a new tab)

  8. Bond, fees and your license

    Finish with the $60,000 bond and the fees: $140 for the application and $560 for the two-year license, $700 in all. Dealer plates are $145 each, up to three at first. You don't pay that amount: a surety company charges you a premium, a fraction of it, set mainly by your credit. portal.ct.gov › k36pdf.pdf (source, opens in a new tab) portal.ct.gov › get-regulated-business-license (source, opens in a new tab)

The location

Display lot
Used-car display area plus repair department accommodating at least two vehicles simultaneously. portal.ct.gov (source, opens in a new tab)
Office
Suitable office; business records on site for two years; hours posted. Qualified mechanic and repair facilities; waste-oil tank generally at least 250 gallons and disposal arrangements, unless applicable exemption approved. portal.ct.gov (source, opens in a new tab)
Sign
Photographs of required signs and posted hours requested. portal.ct.gov (source, opens in a new tab)
Zoning and home-based lots
Local zoning, building and fire approvals on application; environmental compliance may apply. portal.ct.gov (source, opens in a new tab)

Before you apply

Entity/DBA documents and Certificate of Existence as applicable; sales-tax permit matching site; R1325e insurance certificate even with no plates; qualified mechanic; local approvals. portal.ct.gov (source, opens in a new tab)

Forms

K7 dealer/repairer application; K8 inspection application; K93 site drawing; K198 service-of-process agent; K200 VIN-etching rate; R1325e insurance certificate; K36 instructions. Forms linked from primary page. portal.ct.gov (source, opens in a new tab)

Get the current versions from portal.ct.gov; we don’t host copies.

Not the license you’re after?

New car dealer, general/limited repairer, leasing/rental and recycler licenses differ; do not use their bond amounts or premises exemptions. portal.ct.gov (source, opens in a new tab)

What trips people up

Our read of the requirements above, not official guidance or statistics.

The hardest part: accommodating the repair department, mechanic and waste-oil requirements in a first dealership site.

Easy mistakes:

Questions

How much does a Connecticut dealer license cost?

$700: a $140 application fee and $560 for the two-year license, plus $145 per dealer plate. The premium on the $60,000 bond and setting up the repair department cost more. portal.ct.gov › get-regulated-business-license (source, opens in a new tab) portal.ct.gov › k36pdf.pdf (source, opens in a new tab)

Do I really need a repair shop?

Yes. A used dealer needs a repair department for at least two vehicles and a qualified mechanic. portal.ct.gov › k36pdf.pdf (source, opens in a new tab)

How long is the license good for?

Two years. portal.ct.gov › get-regulated-business-license (source, opens in a new tab) portal.ct.gov › k36pdf.pdf (source, opens in a new tab)

Sources

Not affiliated with the Connecticut DMV. Not legal advice. Requirements change; always confirm with the state.