To get a car dealer license in Connecticut, you must apply through the DMV, meet eligibility requirements, pass a background check, and obtain a surety bond.
Obtaining a car dealer license in Connecticut involves several steps, including meeting state requirements, submitting an application to the DMV, and securing a surety bond. The process ensures that dealers operate legally and ethically within the state. This guide outlines the key steps and requirements for obtaining a dealer license in Connecticut.
Eligibility Requirements
- Be at least 18 years old
- Have a valid Connecticut driver's license
- Have no felony convictions in the past 7 years
- Secure a permanent business location
- Obtain a surety bond (amount varies by license type)
Application Process
- Choose the type of dealer license you need (e.g., new car, used car, wholesale)
- Complete the Dealer License Application (Form E1)
- Submit the application to the Connecticut DMV
- Pay the required application fee
- Pass a background check
- Obtain a surety bond
- Pass a DMV inspection of your business location
Surety Bond Requirements
| License Type | Bond Amount | Annual Cost | |
|---|---|---|---|
| New Car Dealer | $50,000 | $500 - $1,000 | |
| Used Car Dealer | $20,000 | $200 - $400 | |
| Wholesale Dealer | $10,000 | $100 - $200 |
Additional Requirements
- Obtain a Certificate of Occupancy for your business location
- Secure liability insurance for your dealership
- Obtain a sales tax permit from the Connecticut Department of Revenue Services
- Join the Connecticut Automotive Retailers Association (CARA)
Maintaining Your License
After obtaining your dealer license, you must:
- Renew your license annually
- Maintain your surety bond
- Comply with all state and federal regulations
- Keep accurate records of all transactions