Hawaii Motor Vehicle Dealers are required to apply for licensure. A motor vehicle dealer can be a new vehicle dealer, a used vehicle dealer (also known as a car dealer or auto dealer), a motor vehicle auction dealer, used motorcycle dealer or motor scooter dealer.
Application requirements are as follows:
Complete the application and pay the licensing fee (fees vary based on dealer type and island).
Provide a drawing and written description of the proposed dealership location, photographs of the show room, office, restrooms, exterior of the buidling (if sharing office space), and a copy of the lease or rental agreement.
Applicants must either establish a line of credit or obtain a surety bond. New car dealers need a line of credit of at least $500,000, while used car and motorcycle dealers must have a line of credit of $50,000, and auctions must have a $100,000 line of credit.
Motor Vehicle Dealers that are unable to obtain the appropriate credit have the alternative option to obtain a Surety Bond.
Bond amounts are:
Provide a financial statement (completed within the previous 12 months) that has been prepared and signed by a CPA. The name of the financial statement must match the applicant name. If applicable, partnerships must submit financial statement for each partner. If sole proprietor, attach an individual statement.
If using a trade or dba name, provide a file stamped copy of the Application for Registration of Trade Name.
If business is a corporation, partnership, limited liability company or limited liability partnership, provide a Certificate of Good Standing.
If a franchise, provide a signed copy of the Dealer's Sales and Service Agreement.
Complete salesperson applications or transfer forms (not applicable to sole proprietors or partnerships).
Applicants must be able to pass a criminal background check.
Dealerships without repair facilities must provide a certification letter as to which reputable facility will do repair work.
License and bonds renew June 30 of even numbered years.
The premium that you pay for a Hawaii Motor Vehicle Dealer Bond is dependent on credit, the bond amount required and experience in the industry. Bond amounts over $50,000 will require business and personal financial statements.
Hours: 8:00-5:00 CST, Monday through Friday