Getting a used car dealer license in Idaho
In Idaho, used-car dealers are licensed by Idaho Transportation Department DMV Dealer Services.
Before your first retail sale you’ll need a $20,000 surety bond, a pre-licensing course 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.
At a glance
- License
- Used-only retail vehicle dealer itd.idaho.gov (source, opens in a new tab)
- Issued by
- Idaho Transportation Department DMV Dealer Services itd.idaho.gov (source, opens in a new tab)
- Surety bond
- $20,000 retail; wholesale $40,000. Cash/CD alternative subject to statutory hold; three claim-free years may allow later bond exemption, not initial exemption. itd.idaho.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.
- Pre-licensing course
- All owners/applicants: eight-hour pre-license education. ITD3170 lists Idaho State Independent Automobile Dealers Association and Independent Training Services. itd.idaho.gov (source, opens in a new tab)
- Exam
- Written closed-book examination associated with pre-license education. itd.idaho.gov (source, opens in a new tab)
- Official fees
- ITD3170: $190 dealer application + $300 ICAR contribution = $490; supplemental location $44. itd.idaho.gov (source, opens in a new tab)
- Renewal
- All owners of used-only/wholesale-only dealerships: four hours annual continuing education. itd.idaho.gov (source, opens in a new tab)
- Site inspection
- Yes: district Motor Vehicle Investigator after application review. Compliant site receives 90-day temporary license, followed by audit before permanent license. itd.idaho.gov (source, opens in a new tab)
Step by step
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Make sure you need a used retail license
Selling used cars to the public in Idaho takes a used-only retail dealer license from the Idaho Transportation Department's DMV Dealer Services. A wholesale-only license has no retail authority and a higher bond, and powersports and manufacturer licenses are separate. itd.idaho.gov › vehicle-dealers (source, opens in a new tab)
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Get your dealership name approved first
Call ITD's Dealer Team for name approval before you buy the bond. Buying the bond first is a common mistake. itd.idaho.gov › vehicle-dealers (source, opens in a new tab) itd.idaho.gov › 3170.pdf (source, opens in a new tab)
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Every owner takes the course and the exam
All owners and applicants complete eight hours of pre-license education from a provider listed on form ITD3170, such as the Idaho State Independent Automobile Dealers Association or Independent Training Services, and pass a written, closed-book exam. Missing one owner holds up the whole application. itd.idaho.gov › vehicle-dealers (source, opens in a new tab) itd.idaho.gov › 3170.pdf (source, opens in a new tab)
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Set up the business
Register the entity or DBA, get a tax seller's permit and an EIN, and prepare a notarized personal history for each owner or officer. You also need a liability insurance certificate for $25,000/$50,000 bodily injury and $15,000 property damage. itd.idaho.gov › vehicle-dealers (source, opens in a new tab) itd.idaho.gov › 3170.pdf (source, opens in a new tab)
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Find a location that qualifies
You need an improved display area for at least five vehicles next to the office, owned or leased and separated from other businesses, with a physical divider if it adjoins another dealership. The office must lock and have a desk, a filing cabinet and a listed business phone answered in the dealership's name, and you declare hours staffed by a licensed salesperson. Local zoning must approve the site. itd.idaho.gov › vehicle-dealers (source, opens in a new tab) itd.idaho.gov › 3170.pdf (source, opens in a new tab)
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Put up the sign
The permanent exterior sign must be readable from the road and comply with zoning. ITD recommends at least 24 sq ft with 4-inch lettering showing your trade name, address and dealer number; that's a recommendation rather than a fixed minimum. itd.idaho.gov › vehicle-dealers (source, opens in a new tab)
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Get the bond
Retail dealers need a $20,000 bond (wholesale is $40,000). A cash deposit or CD can be used instead, subject to a statutory hold. You don't pay that amount: a surety company charges you a premium, a fraction of it, set mainly by your credit. itd.idaho.gov › vehicle-dealers (source, opens in a new tab)
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Apply
Submit form ITD3170 with each owner's personal history (ITD3171), the bond, the insurance certificate and the fees: $190 for the application plus a $300 ICAR contribution, $490 in all. ITD says to allow 30 days for processing. itd.idaho.gov › vehicle-dealers (source, opens in a new tab) itd.idaho.gov › 3170.pdf (source, opens in a new tab)
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Inspection, then a temporary license
A district motor vehicle investigator visits after the application is reviewed. A compliant site gets a 90-day temporary license, and an audit comes before the permanent one, so don't treat the temporary license as the finish line. itd.idaho.gov › vehicle-dealers (source, opens in a new tab) itd.idaho.gov › 3170.pdf (source, opens in a new tab)
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Keep it current
Every owner of a used-only dealership completes four hours of continuing education each year. itd.idaho.gov › vehicle-dealers (source, opens in a new tab)
The location
- Display lot
- Improved display area for at least five vehicles, adjacent to office, owned/leased and separated from other businesses; adjoining dealerships need physical divider. itd.idaho.gov (source, opens in a new tab)
- Office
- Locking office, desk, filing cabinet and listed business phone answered in dealership name; declare hours staffed by licensed salesperson. itd.idaho.gov (source, opens in a new tab)
- Sign
- Permanent exterior sign readable from road and compliant with zoning; ITD recommends at least 24 sq ft with 4-inch lettering, including trade name/address/dealer number. Recommended size is not presented as an absolute statutory minimum. itd.idaho.gov (source, opens in a new tab)
- Zoning and home-based lots
- Local zoning approval required. Application allows separate building or ground-floor office on home property with separate entrance and no access into residence, subject to local approval. itd.idaho.gov (source, opens in a new tab)
Before you apply
Entity/DBA registration, tax seller permit, EIN; notarized owner/officer personal histories; liability certificate $25,000/$50,000 bodily injury and $15,000 property under specified coverage. itd.idaho.gov (source, opens in a new tab)
Forms
ITD3170 Dealer/Manufacturer Application (rev 5/2024); ITD3171 Personal History and Application for Salesperson License. Plate paperwork supplied during inspection; bond/supporting forms linked from dealer hub. itd.idaho.gov (source, opens in a new tab)
Get the current versions from itd.idaho.gov; we don’t host copies.
Not the license you’re after?
Wholesale-only has no retail authority and a higher bond; powersports and manufacturer categories differ. itd.idaho.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: coordinating every owner’s education and planning for temporary licensing followed by audit.
Easy mistakes:
- Buying bond before name approval, missing an owner’s course/history, insufficient five-car area or treating temporary approval as permanent licensing.
Questions
How much does an Idaho dealer license cost?
$490 at application: $190 for the application and a $300 ICAR contribution. You also pay a premium on the $20,000 bond and for the liability insurance, plus the course and the location. itd.idaho.gov › 3170.pdf (source, opens in a new tab) itd.idaho.gov › vehicle-dealers (source, opens in a new tab)
Is there a test?
Yes. After the eight-hour course, every owner takes a written, closed-book exam. itd.idaho.gov › vehicle-dealers (source, opens in a new tab) itd.idaho.gov › 3170.pdf (source, opens in a new tab)
Can I run a dealership from home in Idaho?
Possibly. A separate building, or a ground-floor office with its own entrance and no access into the house, can qualify if local zoning approves it. itd.idaho.gov › 3170.pdf (source, opens in a new tab)
How long does it take?
ITD says to allow 30 days to process the application. After the site visit you get a 90-day temporary license, and an audit comes before the permanent one. itd.idaho.gov › vehicle-dealers (source, opens in a new tab)
Sources
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Not affiliated with the Idaho Transportation Department. Not legal advice. Requirements change; always confirm with the state.