How to Get an Idaho Dealer License in 8 Simple Steps

If you plan to sell five or more vehicles per year in Idaho, you’re legally required to obtain a dealer license from the Idaho Transportation Department (ITD). Whether you are going to open a retail car lot or start a wholesale dealership, the licensing process ensures that your business meets all state regulations.

To qualify, you’ll need to complete several key requirements. In this guide, we’ll walk you through the 8 essential steps to get your Idaho dealer license, so you can start operating as quickly as possible, while staying compliant with the law.

1. Determine Your License and Vehicle Sales Type

Before applying for a dealer license in Idaho, you’ll need to determine the type of license you need and the kinds of vehicles you plan to sell. Idaho offers two main types of dealer licenses:

• Retail – allows you to sell vehicles directly to the public
• Wholesale – allows you to sell only to other licensed dealers, not to the general public

In addition to these, you also need to identify the specific vehicle types you intend to sell. Options include:

New Vehicles

• Automobiles and trucks
• Recreational vehicles (RVs)
• ATVs, UTVs, motorcycles, or snowmobiles
• Trailers

Used Vehicles

• Only ATV, UTV, motorcycle, or snowmobile (no other vehicles)
• All used vehicles (including trailer, ATV, UTV, motorcycle, snowmobile, or vessel)

You can select multiple vehicle types, but they must all fall under either the new or used category. In Idaho, dealers cannot mix new and used vehicle types without the appropriate franchise agreements.

2. Secure a Business Location 

To get licensed, you must establish a permanent business location that meets Idaho Transportation Department (ITD) zoning requirements.

Main Location & Hours
Your primary dealership must handle daily operations. Any additional sites are considered supplemental lots and must be in the same or a neighboring county.

• Retail dealers must keep regular business hours and have a licensed salesperson present.
• Wholesale dealers must be open at least 4 staffed hours per week, Monday–Friday, between 8 AM and 5 PM.

Required Signage
You must install a permanent sign that is:

• At least 24 sq. ft. with 4-inch block letters
• Clearly visible from the nearest public road
• Showing your trade name, address, and dealer number
  Wholesale dealers may meet this by displaying a compliant sign in a window.

Office Requirements
The office must be enclosed and used only for business, with:

• A desk, chair, locking file cabinet, and a landline phone listed under the business name
• It cannot be in a residential space unless the entire ground floor is used commercially.

Display Area (Retail Only)
Retail dealers must have space for at least five vehicles or vessels, located at or next to the main business site. The area must be clearly marked with physical boundaries like curbs or fencing.

Zoning Restrictions
The dealership must be the primary use of the property. Shared or mixed-use spaces are allowed only if they meet strict layout and zoning rules.

3. Register Your Business

Before you can apply for your Idaho dealer license, there are a few business registrations you’ll need to take care of. First, you will need to register your business with the Idaho Secretary of State – this sets up your official business structure, like an LLC or corporation.

If you’re going for a retail license, you’ll also need to register with the Idaho State Tax Commission to get a seller’s permit in your dealership’s name. And if you’re planning to hire employees, you’ll need to register with the Idaho Department of Labor. Both of these steps can be done through the Idaho Business Registration System.

In addition, you will need to apply for an Employer Identification Number (EIN) from the IRS – this is your business’s tax ID. 

Finally, it’s advisable to check in with your local city or county clerk’s office to see if there are any extra registration steps or permits required in your area.

Note: Before submitting your licence application, you should call the Dealer Team at 208.334.8681 to make sure that the name of your dealership is not too similar to an existing dealership’s name.

4. Complete Pre-Licensing Education

If you’re applying for a used-only or wholesale-only dealer license in Idaho, at least one owner listed on the application must complete the mandatory 8-hour pre-licensing education course. The training concludes with a closed-book written exam, which you must pass to move forward with your application.

Franchised dealers are exempt from this requirement.

For license renewals, used-only and wholesale-only dealers must complete at least 4 hours of continuing education. This requirement must be met before your license can be renewed.

This training is offered by the Idaho State Independent Automobile Dealers Association or Independent Training Services. You can register for classes and find course schedules on their websites or by contacting them directly.

After completing the course and passing the exam, you’ll receive a certificate of completion. You must enclose it with your dealer license application. 

5. Obtain Required Insurance

To operate legally as an auto dealer in Idaho, you must secure liability insurance for your dealership. This step is essential, as it protects your business from financial losses related to bodily injury, property damage, or other incidents that may occur during day-to-day operations.

Idaho requires dealers to carry liability insurance that meets minimum coverage limits of:

• $25,000 for bodily injury to one person
• $50,000 for bodily injury to two persons
• $15,000 for property damage or destruction

Your insurance certificate must either specify coverage for “any auto” or clearly state that the policy complies with Idaho Code 49-1608A.

6. Get Your Idaho Auto Dealer Bond

Before applying for a vehicle or vessel dealer license in Idaho, you must obtain a bond issued by a corporate surety company authorized to do business in the state. This bond protects consumers from errors and unethical practices by the dealer.

According to Idaho Code, the bond amount must be:

• $20,000 for all retail dealers 
• $40,000 for all wholesale-only dealers
• $10,000 for dealers of motorcycles, ATVs, UTVs, truck campers, or snowmobiles 

Obtaining an Idaho auto dealer bond is a straightforward process. Many licensed providers offer fast online applications with instant quotes, making it easy to compare rates and terms.

Important: The information on your surety bond (owner(s), business name, and physical location) must exactly match the details provided on your dealer license application. Inaccuracies can delay or invalidate your application.

7. Prepare and Submit Your Application

Once you’ve met all the requirements outlined above, you’re ready to complete the official Idaho vehicle or vessel dealership application. The form will guide you through what needs to be included and which supporting documents to attach.

One key requirement is the Dealer/Owner and Salesperson Application (Form ITD- 3171), which must be completed by each owner, partner, corporate officer, or director listed on the application.

In addition, you’ll also need to include the appropriate fees, which we’ll discuss in more detail below.

Once everything is complete and all documents are signed and organized, mail your full application package to:

Idaho Transportation Department
Division of Motor Vehicles
PO Box 34
Boise, ID 83707-0034

8. Pass Dealership Inspection

ITD may take up to 30 days to process and approve your dealer license application. Once approved, the Motor Vehicle Investigator assigned to your district will contact you to schedule an on-site inspection.

During the audit, the investigator will verify that your business complies with all state laws and requirements. They’ll also guide you on completing necessary documentation for titling purposes.

If the inspection is successful, you’ll be issued a 90-day temporary license. After that period, a follow-up audit will be conducted. Upon passing it, you’ll receive your permanent dealer license.

Idaho Auto Dealer License Fee Structure

Getting your Idaho auto dealer license comes with several fees, so it’s important to know what to expect. Here’s a clear breakdown of the main costs involved: from your initial application to renewal, ID cards, and mandatory fees like the ICAR fee.

Depending on your dealership’s needs, you’ll have different plate options. You can find the fee for each type below.

And finally, beyond the main license and plate fees, there are a few other important charges you should be aware of. These are administrative costs, such as temporary registration books, supplemental lot licenses, and license reprints.

Important Updates for Idaho Auto Dealers

• Concession Trailer Title & Registration (Effective January 1, 2024)

Newly purchased concession trailers in Idaho must be titled and registered. For trailers purchased before this date, titling and registration are optional but strongly encouraged to ensure legal towing rights and proof of ownership.

• Updated Definition of Dealer’s Principal Place of Business (Proposed Effective Date: July 1, 2025)

As part of revisions to Rule 39.02.03, the Idaho DMV clarified the requirements for a dealer’s principal place of business. Dealers must maintain a permanent office, display area, signage, and a secure system for record keeping.

• Streamlined Consumer Claims Process (Proposed Effective Date: July 1, 2025)

Updates to Rule 39.02.03 also include a clearer process for consumers filing claims with the ICAR Fund. Claims must be submitted to the DMV Administrator for review by the ICAR Board, which will determine eligibility and payout.

Frequently Asked Questions

When do I need to renew an Idaho dealer license, and how do I do it?

Dealer licenses and plates in Idaho expire annually and must be renewed before the expiration date. You should submit your renewal along with all required documents. This includes proof of a valid surety bond and liability insurance, so be sure both are current.

If you’re a used-only or wholesale-only dealer, you must also complete at least 4 hours of approved continuing education before renewing.

For full details, refer to the official Idaho Dealer Handbook or contact ITD directly.

How long does it take to get an Idaho dealer license approved?

ITD typically takes up to 30 days to process your auto dealer application. After approval, your dealership will be inspected, and upon passing, you’ll receive a temporary 90-day license. After a successful follow-up audit, you will get your permanent license.

Can you operate a vehicle dealership in Idaho without a lot?

In Idaho, operating as an auto dealer without a designated lot is generally not allowed. State law requires all licensed vehicle dealers to maintain a “principal place of business” as the primary location for their operations. 

There are some exceptions for temporary operations, but most auto dealers must have a permanent, compliant lot to operate legally.