Delaware Auction License

Delaware Auction License

In order to receive a Delaware Auction License, you must first complete a series of processes. This article will lead you through each of those processes in the most straightforward and straightforward manner possible. Traders in Delaware should remember to submit their applications to the Delaware Division of Motor Vehicles. Here are the steps you need to take for the start!

When is it necessary to have a Delaware Auction License?

As a retailer, if you sell five or more transports in a 12-month period you have to obtain a permit. How?

First of all, decide which type of license you’ll require:

  • New Vehicle Dealer: Sell new transports after entering into a formal arrangement with an auto manufacturer to lawfully sell its new vehicles; you can also sell used ones of any make with this permit.
  • Dealer in Used Automobiles: Sells all makes and models of used ones, but no new transports of any kind.
  • Wholesale Dealer: Sells vehicles to other licensed traders directly rather than to the general public.
  • Mobile Home Dealership: We exclusively buy and sell new and used mobile homes.
  • Vehicle Auction Service: Sells vehicles as a middleman between certified traders, but does not own the transports sold; cannot sell new transports, but can process the sale of any make.

Submit an application for a criminal background check

You must submit a criminal history background check and a state permit before you can begin your business. You need to include these documents with your Dealer License Application. Remember to send a copy of your criminal history background check to the State Bureau of Identification as well.

The fee is $52.50.

Long-term business address

You must have an office location with a phone number mentioned in your business name. Your parking lot must be large enough to accommodate at least five automobiles. It’s also necessary to have a display sign that clearly displays your approved dealership name (be sure it’s available).

Zoning approval as well as an entrance permit

Because various cities and states have distinct regulations, the methods for obtaining an auto seller permit may vary from city to city. However, regardless of where your dealership is located, it must adhere to the local zoning regulations.

Copy of your liability insurance policy’s proof of coverage

The DMV requires confirmation of liability insurance, as well as information on how many trader tags are covered.

Business permit for the year

The Division of Revenue requires you to obtain a business permit every year. You may need to file a Combined Registration Application depending on your business. The price is $100 (plus an additional $75 for wholesalers).

Automobile dealer bond

An auto trader bond has a low cost as a percentage of the entire liability amount. Your financial strength, such as your personal credit, will impact the cost of liability. To get licensed, all traders must first secure a bond. For a new car trader permit, a $25,000 liability is required.

Arrange for a site inspection of your business

Make an appointment with the Delaware Department of Motor Vehicles to have your business inspected. You need to pay a $10 fee for each trader tag. Traders should offer an estimate of the number of cars they expect to sell in their first year of operation.

Complete the dealer licensing application

Get the application form and make sure to read the trader procedure handbook so you know what documents you’ll need for your unique permit type.

Make sure to apply the following forms and submit them to the DMV in Dover:

Division of Motor Vehicles
Dover Administration Office
303 Transportation Circle
P.O. Box 698
Dover, Delaware 19903
Dover Dealer Section: 302-744-2571


Mariana T

Mariana T

Mariana is a journalist with four years of experience in the military-political field. But recently she decided to try herself in other fields as well, so she switched it to content writing. Now she committed to producing exceptional and creative types of content, including articles, internet content, advertisements, and publications.