Connecticut requires a number of different licensing options in the motor vehicle industry. This short article is going to focus on bringing clarity to the process of submitting your auto dealer license application so it gets approved the first time.
Expect to understand:
Before getting into each section of the application, here's a quick overview of the types of dealer licenses in Connecticut.
Repairers are further broken down into:
Each license type has a similar application process but with different requirements. Again, this post will focus on new and user dealers but the details for repairers will also be covered.
The application will require the personal identification and address of all owners (or yourself if you're the sole owner), partners, and officers or members.
Each of these individuals will have their experience verified by the Connecticut DMV. If relevant experience is from an out-of-state employer or business, an official letter, on official business letterhead is required to provide:
If relevant experience is from an in-state business that is no longer in business, the DMV will accept a letter from the applicant outlining the same details as if the business were out-of-state.
Each individual listed on the application will have to enroll in a fingerprint background check provided through the Department of Emergency Services and Public Protection.
Only one individual is required to sign the final application.
If you're part of a business entity like an LLC or Corporation that is getting licensed, there is additional paperwork you must include with your application.
For both LLCs and Corporations:
Additional requirements only for LLCs:
Request a Free Price Quote Today
Let us shop for you and find the lowest possible price.
There is no cost to you and there's no obligation to buy once you get pricing.
The dealership may not be the only business location as you'll see in a minute.
For a new, used, and both repairer licenses, the location where vehicles are sold or repaired will have to be inspected and approved by the:
These minimum requirements are typically required for each dealership/repairer location, but they can be waived if the additional location is adjacent to the primary location.
However, the adjacent location will require its own application process including insurance, surety bond, dealer plates, and associated application fees.
Unlike many states that have specific size requirements, Connecticut only requires specific signs to be displayed.
A photo of each of these signs is required with the application.
| Photo of each required sign | New Dealer | Used Dealer | Repairer |
|---|---|---|---|
| Lemon Law in repair and service areas | Required | Required | Not |
| VIN etching cost sign | Required | Not | Not |
| Dealer Conveyance fee sign | Required | Required | Not |
| Customer Rights sign | Required | Required | Required |
| Labor and Storage Price sign | Required | Required | Required |
A detailed drawing of the dealership with measurements is required. The Connecticut DMV stresses the drawing should be on an 8 by 11.5 piece of paper.
Here are the requirements for the drawing:
A surety bond is a type of insurance contract purchased by the licensed dealer and required by the Connecticut DMV to hold licensed auto dealers accountable for providing honest and ethical business services to their customers.
One of the responsibilities of the Connecticut DMV is to protect the public from dealerships or repairs who engage in fraudulent business activities to increase profits or steal from their customer base.
It's unfortunate, but there are dealerships who will:
These are the purposeful actions a surety bond protects a dealer's customer and the Connecticut Department of Revenue against.
If a dealer is found guilty of financially harming a customer or the state on purpose, the surety bond provides financial protection up to the amount of the bond.
The Connecticut DMV requires each license to provide a surety bond with the following amount:
| Dealer License | Requires an Auto Dealer Surety Bond | Bond Amount |
|---|---|---|
| New Vehicle Dealers | Yes | $60,000 |
| Use Vehicle Dealers | Yes | $60,000 |
| Vehicle Leasing Companies | Yes | $15,000 |
| General Repairer Shops | Yes | $25,000 |
| Limited Repairer Shops | Yes | $10,000 |
| Recycler (Junk Yard) | No | -- |
This amount is the maximum financial protection available to customers and the state.
The price of the surety bond depends on the type of license you're obtaining.
For new and used dealer licenses, the cost of the surety bond is determined by a rate quoted from a surety.
You can learn the details about the surety bond agreement, but a surety is the insurance company that issues the surety bond.
The rate quoted by the surety will depend on several factors including:
The rate (a small percentage) multiplied by the bond amount will be the price you pay.
Request a Free Price Quote Today
Let us shop for you and find the lowest possible price.
There is no cost to you and there's no obligation to buy once you get pricing.
We've already secured low fixed prices for the repairer surety bond and no credit check is required.
This means you can instantly purchase your bond today and have it issued to you within one business day.
The pricing is as follows:
| Dealer License | Bond Amount | Get Pricing Today |
|---|---|---|
| New Vehicle Dealers | $60,000 | Click for FREE Quote |
| Use Vehicle Dealers | $60,000 | Click for FREE Quote |
| Vehicle Leasing Companies | $15,000 | Click for FREE Quote |
| General Repairer Shops | $25,000 | Click for FREE Quote |
| Limited Repairer Shops | $10,000 | Click for FREE Quote |
If you prefer to speak with a bond specialist to get any lingering questions answered, call 1-800-608-9950.
While each surety uses similar factors to determine a rate, they will determine their rate based on their own underwriting guidelines and rates filed with the Connecticut Department of Insurance.
This means rates can vary wildly and that means prices can vary by hundreds of dollars.
Surety Bonds Direct is a specialized surety agency that can shop for the lowest possible rate and get you the lowest price.
Plus the quotes we provide cost you nothing and you have zero obligation to purchase from us.
There's zero risk on your end. Let us prove to you that we can get you the best pricing.
If you choose to request dealership plates, here are the rules:
Finally, depending on the type of license you're applying for, you must provide completed forms to prove proper use and business conduct.
This allows for the collection of sales tax on sold vehicles. You can obtain this form from the Department of Revenue.
Make sure the address on the sales tax permit matches the business address on this application.
If you are going to be a waste oil transporter, you will need to be approved by the CT Department of Environmental Protection.
If you're going to store vehicles, not related to selling vehicles, a Vehicle Storage Rates Requirement application form must be on file.
This application includes:
New and used dealers have the option to provide VIN etching service.
If the dealer chooses to provide this service, a Certificate of Filing Etching must be on file with the DMV and must be listed on each purchase order.
Non refundable $140 application fee for a 2 year license term.
| Transaction | Fee |
|---|---|
| New Dealer License | $700 |
| Used Dealer License | $560 |
| General or Limited Repairer License | $340 |
| Transaction | Fee |
|---|---|
| Dealer or Repairer Plate | $140 per plate |
| SX Commercial Plate | $145 per plate |
| Safety Plate | $5.00 per plate |
Finally the auto dealer surety bond and the Financial Responsibility Insurance certificate are the variable costs.
I hope this article helped bring some clarity to the steps and requirements.
While Connecticut has decent documents to help you get through this process, there are plenty of questions that popup along the way.
When you're ready to purchase your auto dealer bond, let Surety Bonds Direct help you find the lowest possible price.
Remember, providing you with a price quote costs you nothing and there's zero obligation to purchase.
Get your pricing today so you're able to make the best decision when it comes time to purchase.
If you have any questions about the surety bond requirement, call us at 1-800-608-9950.
