If you’ve been thinking about starting your own dealership in Utah, you’ve probably realized there’s a lot more to it than just finding cars to sell. From dealer bonds to dealer insurance, from dealer training to securing dealer plates and flooring lines of credit, the process can feel overwhelming.
The Independent Auto Dealers Association of Utah (IADAU) is here to simplify the process and help you succeed. Here’s everything you need to know to get started — and stay compliant — as a Utah dealer.
Step 1: Complete the Required Dealer Training
Utah requires all new and renewing dealers to complete approved dealer training before obtaining or renewing a license.
- New dealers: Must complete an 8-hour pre-licensing course.
- Renewals: Must complete the required continuing education annually.
The best part? The Independent Auto Dealers Association of Utah provides state-approved dealer training at no cost to our members — in-person or online. This ensures you get the knowledge you need without the added expense.
Step 2: Secure Your Dealer Bond
A dealer bond is a legal requirement in Utah. This bond protects consumers and the state in case of dealer fraud or failure to meet obligations.
- Why you need it: It builds trust and fulfills a key licensing requirement.
- How to get it: The Independent Auto Dealers Association of Utah can help you obtain your dealer bond through verified vendors we trust, ensuring you get competitive rates and fast processing.
Step 3: Get Dealer Insurance
Before you can operate, you’ll need dealer insurance to protect your inventory, customers, and business operations. Policies typically include:
- Garage liability insurance
- Inventory (open lot) coverage
- Workers’ compensation (if you have employees)
Our association partners with experienced agencies to help you get competitive rates on the coverage you need.
Step 4: Apply for Your Dealer License
With your training completed, bond secured, and insurance in place, you can submit your application to the Utah Motor Vehicle Enforcement Division (MVED). Be prepared to provide:
- Business location photos
- Proof of insurance
- Bond certificate
- Training certificate
- Application fee
Step 5: Secure Flooring (Inventory Financing)
If you plan to sell multiple vehicles, you may need a flooring line of credit to purchase and maintain inventory.
- What it is: A short-term loan that allows you to stock your lot.
- How to get it: Lenders look at your business plan, credit, and experience. IADAU members can access trusted lender referrals who work specifically with independent dealers.
Step 6: Get Dealer Plates
Once licensed, you can apply for Utah dealer plates, which allow you to legally drive your inventory for business purposes (test drives, transportation, etc.).
- The number of plates issued depends on your sales volume and business needs.
- Plates must be renewed annually with your dealer license.
Why Join the Independent Auto Dealers Association of Utah?
We provide everything you need to start, grow, and protect your dealership:
- Free state-approved dealer training for members
- Access to preferred dealer insurance providers
- Help obtaining dealer bonds through verified vendors
- Networking with other Utah dealers
- Referrals for flooring lenders and auction access
- Updates on changing laws and compliance requirements
Ready to become a licensed dealer in Utah?
Join the Independent Auto Dealers Association of Utah today and get the training, resources, and connections you need to succeed.
Contact us today to learn more about training dates, membership benefits, and licensing requirements.
