Utah Dealer Licensing Guide
Getting Your Utah Motor Vehicle Dealer License
An orientation to the process, what to expect, in what order, and who to ask.
Before You Begin
This guide is a general orientation only. Always confirm current requirements directly with the Utah Motor Vehicle Enforcement Division before spending money or submitting anything.
Bond requirements are subject to legislative change.
Utah's bond requirements are set in statute and have been the subject of recent legislative activity. Verify the current amount with MVED or a licensed surety agent before purchasing. Do not rely on an older quote or summary.
The authority on this process
Utah State Tax Commission
Motor Vehicle Enforcement Division (MVED)
210 North 1950 West
Salt Lake City, UT 84134
Phone: 801-297-2600
The governing law
Utah Motor Vehicle Business Regulation Act, Utah Code Title 41, Chapter 3, and associated Tax Commission rules.
Welcome and Congratulations
Utah is unusually specific about the physical property, including boundaries, display capacity, office construction, and sign requirements. An MVED inspector will verify the site.
Wayne Reaves has worked alongside independent dealers for years. We are not a licensing service and do not file on your behalf, but this guide lays out the process so you know what is coming.
The inspection is not a formality.
The site needs to be finished and compliant before you submit. The license cannot be issued until the on-site inspection is passed.
The Shape of the Process
Utah expects most application materials to be assembled before the package is submitted.
- 01Principal Place of BusinessSecure a Utah location meeting zoning, boundary, display, office, and exclusivity requirements.
- 02Permanent SignInstall signage meeting MVED's current size, mounting, and identification rules.
- 03Pre-Licensing OrientationComplete the required initial training and plan for annual continuing training.
- 04Business Name & Related RegistrationsRegister the business or trade name and address financing registration if applicable.
- 05Sales Tax LicenseProvide proof of a valid Utah sales tax license for motor vehicle sales.
- 06Surety BondFile the state-form corporate surety bond for the applicable license type.
- 07Fingerprints & PhotographsSubmit owner fingerprints, waiver materials, owner photos, and site/sign photos.
- 08Application & InspectionSubmit the complete package and pass the MVED on-site inspection.
- 09Dealer PlatesRequest plates and maintain the required insurance and plate controls.
Why we do not list dollar amounts here: Bond, license, plate, and fingerprint fees can change. Utah bond requirements in particular have been under recent legislative attention. Use current MVED materials.
Your Principal Place of Business
Utah requires a principal place of business in the state that complies with local zoning for motor vehicle sales, is devoted to vehicle sales and directly incidental business, has clearly defined boundaries, and provides the required vehicle display capacity.
A permanent enclosed building must house the dealership office and provide secure storage for books and records. The principal portion of the dealership's business must be conducted from that location.
The exclusivity rule catches people.
Utah generally does not allow the principal place of business to share common area with another dealer, auction, dismantler, manufacturer, or unrelated business. Confirm the current rule before signing anything.
Check local zoning separately with your city or county.
The Sign
Utah sets specific requirements for the dealership sign, including minimum size, permitted mounting methods, and content that fully identifies the principal place of business and dealership name.
Confirm the current size, mounting, and wording requirements with MVED before ordering or installing the sign. A photograph of the sign and business location is submitted with the application.
Pre-Licensing Orientation & Ongoing Training
All dealer-license applicants must complete the required pre-licensing orientation. Utah also requires continuing training each year for renewal.
MVED publishes the approved training organizations. Confirm current course length, providers, and annual renewal-training requirements before registering.
Business Name & Related Registrations
Register the business or trade name with the Utah Department of Commerce. Which business structure is right for you is a question for an attorney or CPA and affects taxes, liability, and how the name appears on the bond and sign.
If you plan to finance sales
Dealers who finance their own sales or arrange financing may need a separate registration with the Utah Department of Financial Institutions.
If buy-here-pay-here or arranged financing is part of the business plan, confirm the applicable requirements early.
Mobile-home dealers and certain franchised dealers have additional requirements. Confirm with MVED if either applies.
Sales Tax License
Dealers must provide proof of a valid Utah sales tax license for motor vehicle sales. Registration is handled through the Utah State Tax Commission.
Surety Bond
Utah requires a corporate surety bond filed with MVED on the state's bond form. The amount depends on the license type.
The bond must remain in effect for as long as the dealer is in business. Operating without a current qualifying bond on file is not permitted, and a cash bond is not a temporary substitute while a replacement is arranged.
Confirm the current amount, correct form, and surety eligibility with MVED or a licensed surety agent before purchasing. Utah also requires the surety company to meet the state's qualification standards.
Choosing a provider
Wayne Reaves does not sell bonds or insurance, does not recommend a particular provider, and receives nothing if you choose one company over another. Compare quotes from licensed providers.
Fingerprints & Photographs
Every individual treated as an owner of the dealership under the current rules must submit fingerprints with the required waiver form and fee. Utah generally requires the fingerprint card to be completed and verified by a local law-enforcement agency.
Passport-quality photographs of each owner, partner, or corporate officer are also submitted, along with photographs of the sign and place of business.
Confirm the current fingerprint process and forms with MVED before going to the local agency.
Application, Fees & Inspection
Submit the application to MVED with the bond, photographs, fingerprint materials, and fees as a complete package.
Allow time for the on-site inspection after MVED receives the application. The license cannot be issued until the inspection has been passed.
Dealer Plates
Dealer plates are requested through the applicable plate section of the application, and Utah requires proof of insurance covering the plates.
Plate use is limited to the purposes allowed by statute and rule. Utah also sets an initial plate limit, with additional plates available as sales volume grows.
Lost or stolen plates trigger specific notice, law-enforcement, case number, and replacement requirements.
Confirm current plate limits, fees, replacement timing, and permitted uses directly with MVED before using dealer plates.
Renewal
Utah dealer licenses and plates run on an annual cycle tied to a fixed date. Renewal requires annual continuing training and a bond that remains continuously in effect.
Confirm the renewal date and requirements with MVED when the license is issued and calendar them well in advance.
Federal Obligations Start on Day One
State licensing is not the whole picture. Federal rules apply when you begin selling, including the FTC's Used Car Rule requiring a Buyers Guide on used vehicles offered for sale. Other federal rules apply to advertising, financing, and recordkeeping.
Ask your attorney or state association what applies to your operation.
How Wayne Reaves Fits In
We want to be straightforward about what we do and do not do.
What we do not do
- File applications
- Form business entities
- Sell bonds or insurance
- Provide legal or tax advice
- Interpret state requirements on your behalf
Those questions belong with MVED, your attorney, your CPA, and licensed agents.
We also do not receive compensation or referral fees from bond or insurance providers.
What we do
We build dealer management software and dealer websites for independent dealers.
- Inventory
- Deal tracking
- Customer records
- Reporting
- Compliance tools
- Dealer websites that put inventory in front of buyers
Where to Get Answers
Disclaimer
This guide is provided for general informational purposes only and is intended as a high-level overview of the dealer licensing process. It is not intended to be comprehensive and should not be relied upon as legal, tax, financial, insurance, regulatory, or licensing advice. Laws, regulations, agency procedures, forms, fees, bond and insurance requirements, deadlines, and other licensing requirements may change at any time and may vary based on license type, business structure, location, or individual circumstances.
Wayne Reaves Computer Systems Inc. does not represent or warrant that the information contained in this guide is complete, current, or applicable to every situation. Before making financial commitments, signing a lease, purchasing insurance or a bond, submitting an application, or otherwise acting in reliance on this information, verify all current requirements directly with the appropriate state and local licensing authorities and consult qualified legal, tax, insurance, or other professional advisors as appropriate.
Use of this guide does not create an attorney-client, advisory, fiduciary, or other professional relationship with Wayne Reaves Computer Systems Inc.