Getting a dealer license is the first step toward opening your dealership in any state. If you’re starting a dealership in Utah, you’ll be happy to know this process requires fewer steps than it does in some other states. Still, it’s essential to follow the process diligently to ensure you get approved on your first try. We’ve gathered everything you need to know about putting together thisapplication so you can get your dealership up and running as quickly as possible. Feel free to use this as a checklist, but always remember to refer to the information from the DMV in case any requirements or regulations change.  

5 Steps to Getting Your Utah Dealer License 

1. Identify Which License You Need 

In Utah, there are three types of dealer licenses depending on the type of business you plan to open¹:

• New motor vehicle dealer
• Used motor vehicle dealer 
• New motorcycle/off-highway vehicle/small trailer dealer 

All other vehicle types may require different licenses, which you can learn more about on the DMV website. 

2. Establish a Permanent Business Location 

Before proceeding with the application process, you’ll need to establish a permanent location for your business. In the state of Utah, there are some regulations your location must meet²: 

• The location must be permanent and only used for the auto dealership, separate from all other businesses. 
• The location must contain a sign permanently attached that shows the official name of the dealership. 
• The sign must be at least 24 sq. ft. in area. 
• The location must have a display area with space for at least three cars. 
• The building must be easy to access with a sign, office, and display adjacent. 

3. Get an Auto Dealer Bond

If you’re applying to be a motor vehicle dealer, the bond amount you’ll need to obtain is $75,000. If you are selling small recreational vehicles, like ATVs, snowmobiles, and motorcycles, the bond amount is $10,000. 

The amount you’ll actually pay for the bond is a percentage of the total value, calculated based on a handful of your personal financial details, including your credit score. You will get a specific number when you apply for the bond quote. 

4. Complete to the Pre-Licensing Course

Utah has an 8-hour course that anyone looking to open a dealership has to complete. It’s available online and costs $100 to complete through the Motor Vehicle Enforcement Division (MVED). There are other distributors who offer the course as well; you can see a list of qualified options through the MVED website or by calling 801-297-2600. 

5. Submit the Application and Fees

In Utah, there are a handful of other documents you’ll need to complete and submit with your final application. Here is a checklist of everything you need to complete so that you can be sure you have everything needed:

• FBI fingerprint card and waiver (form TC-465). You’ll need one for each owner of the business. 
• A sales tax number from the state. Submit application TC-69. 
• Passport photo of each owner. 
• Photo of the business location that shows the sign. 
• Original training certificate proving you completed the 8-hour course. 
• Franchise agreement for new dealers. 
• Plate selection application (form TC-301). This will allow you to get dealer plates. 

When submitting your application, fees vary:

• New or used vehicles: $127
• New or used motorcycles/small trailers, etc.: $51
• Fingerprint card: $25 each
• Dealer plates: $12 each plus $2.50 handling fee. 

Submit the application and mail it all in to: 

Motor Vehicle Enforcement Division

210 N. 1950 W

Salt Lake City, UT 84134

This is not intended as legal advice. If you have questions about dealer licensing requirements, please seek the assistance of legal counsel.

Let ACV Auctions Help You Open for Business in Utah

Once you’ve obtained your Utah dealer license, you’ll need a lot filled with cars to get your business up and running. ACV Auctions can be your partner in sourcing used car inventory from Utah or across the nation.. Our online auction platform gives you the opportunity to bid for any vehicles you need, backed by detailed vehicle condition reports with images, engine sounds of each car so you can trust what you buy. Our personal team of inspectors completes every report, allowing us to ensure a high standard across our platform. It’s free to get started, so get in touch with us now to find every vehicle you could need. 

Sources

1. JW Surety Bonds. “Utah Auto Dealer License Guide.” Retrieved October 2, 2023. https://www.jwsuretybonds.com/states/utah/auto-dealer-license 
2. Risk Strategies Lance Surety Bonds. “The full guide to getting your Utah dealer license” Retrieved October 2, 2023. https://www.jwsuretybonds.com/states/utah/auto-dealer-license