LICENSE TYPES
Utah issues thirteen different motor vehicle business licenses. Almost everyone reading this needs exactly one of them — the used motor vehicle dealer license. This page tells you which is which, which ones trigger the eight-hour course, and why there's no separate wholesale license to go looking for.
The short answer
If you plan to buy used cars and sell them to the public, you need a used motor vehicle dealer license. That one license covers both retail and wholesale — Utah does not issue a separate wholesale dealer license. The other twelve categories exist for specific trades: dismantlers, body shops, crushers, transporters, auctions, manufacturers, and so on.
Utah Code §41-3-201(2) says a person may not act as any of the following without first obtaining a license from the administrator:
| License | Who it's for |
|---|---|
| Dealer | Selling new or used vehicles — three or more in any 12-month period. This is the one most people need. |
| Salesperson | An individual selling on behalf of a licensed dealer. Held by the person, not the business. |
| Salvage vehicle buyer | Bidding on or purchasing salvage and nonrepairable vehicles at auction. Applied for on the TC-305. |
| Dismantler | Dismantling three or more vehicles in any 12-month period for parts or scrap. |
| Body shop | Rebuilding, restoring, repairing, or painting vehicle bodies for compensation. |
| Crusher | Crushing or flattening vehicles for scrap processing. |
| Remanufacturer | Reconstructing, constructing, or assembling three or more vehicles in any 12-month period. |
| Manufacturer | Constructing three or more new vehicles in any 12-month period. |
| Distributor | Distributing new vehicles to franchised dealers. |
| Transporter | Moving vehicles by driving or towing for hire. |
| Motor vehicle auction | Running an auction where vehicles are consigned and sold. |
| Factory branch and representative | A manufacturer's own branch office and its field reps. |
| Distributor branch and representative | The distributor equivalent. |
This is the single most-searched wrong assumption in the category, and it comes from other states. Plenty of states issue a stripped-down "wholesale" license that lets you buy at auction and sell only to other dealers, with lighter lot and display requirements. Utah does not.
In Utah, one used motor vehicle dealer license covers both sides: you can sell to the public and you can sell dealer-to-dealer under the same license. That is good news in one sense — there's no second application, no second fee, no choosing wrong. It's less good in another: you don't get to skip the location and display requirements by declaring yourself wholesale-only. Utah's principal place of business rules (§41-3-102(33)) apply either way, and they require a bounded, marked lot with room to display three or more vehicles plus public parking, and a permanent enclosed building big enough for your office and the safe keeping of your records.
If your interest in "wholesale" was really about auction access, the auction guide covers what actually gets you in the door.
The distinction isn't about what year the car is. Under §41-3-102(30), a new motor vehicle is one that has never been titled or registered and — for anything that isn't a trailer, travel trailer, or semitrailer — has been driven less than 7,500 miles. Under §41-3-102(45), a used motor vehicle is one that has been titled or registered to someone other than a dealer, or has been driven 7,500 miles or more.
So a current-model-year car with 9,000 miles on it and no prior title is still a used vehicle for licensing purposes. A new dealer license, in practice, comes with a franchise relationship attached — it's the license a factory-authorized store holds. Independent lots run on the used license.
This part is worth reading carefully, because the requirement is written by license type, not by person. Under §41-3-201(10)(a), the Division may not issue a license to a new applicant for any of the following unless the applicant completes an approved eight-hour orientation class:
And under §41-3-201(10)(c), the class has to be completed not just by the applicant but by the applicant's partners, corporate officers, bond indemnitors, and managers. That last part catches a lot of first-time applicants by surprise — if your spouse signed as a bond indemnitor, your spouse takes the course too. The course requirement is explained in full here, including whether there's a state test.
A dismantler, body shop, crusher, or transporter license is not on that list. If you're applying for one of those and nothing else, the eight-hour orientation isn't a prerequisite for it.
If your inventory plan involves Copart, IAA, or any salvage-heavy auction, you'll want to know about this one early. Under §41-3-201(3)(a), a person may not bid on or purchase a vehicle with a salvage or nonrepairable certificate at a motor vehicle auction unless that person is a licensed salvage vehicle buyer.
It's a separate license, applied for on the TC-305, and it rides alongside your dealer license rather than replacing it. There is a narrow carve-out for an in-state buyer holding a Utah business license and a Utah sales tax license — capped at five salvage vehicles in any 12-month period, with no nonrepairable vehicles at all — but it's too limited to build on. The details and limits of that exception are here, and the salvage and rebuilt title guide covers what you owe the buyer once you're selling that inventory.
Under §41-3-201(8), a dealer, manufacturer, remanufacturer, transporter, dismantler, crusher, or body shop must obtain a supplemental license under §41-3-201.7 for each additional place of business the licensee maintains. Your license attaches to a location, not just to you. A second lot means a second filing — worth knowing before you sign a lease on one.
| What you want to do | What you need |
|---|---|
| Buy used cars and sell them to the public | Used motor vehicle dealer license |
| Sell only to other dealers, at wholesale | Same used dealer license — there is no wholesale-only license |
| Buy salvage at Copart or IAA | Dealer license + salvage vehicle buyer license (TC-305) |
| Sell cars for someone else's dealership | Salesperson license |
| Part out vehicles for salvage | Dismantler license |
| Repair or paint bodies for pay | Body shop license |
| Sell motorcycles | Motorcycle dealer license (course required) |
| Sell trailers over 750 lbs | Small trailer dealer license (course required) |
| Open a second lot | Supplemental license for that location (§41-3-201.7) |
Once you know which license you're applying for, the cost breakdown and the TC-301 walkthrough cover the rest of the filing, and the full step-by-step guide puts them in order.
No. Utah does not issue a separate wholesale license. One used motor vehicle dealer license covers both retail sales to the public and wholesale sales to other dealers, and the location and display requirements apply either way.
A new motor vehicle is one never titled or registered that has been driven under 7,500 miles. Anything titled or registered to a non-dealer, or driven 7,500 miles or more, is used. Independent lots almost always operate on the used dealer license; the new dealer license goes with a franchise.
New or used motor vehicle dealer, direct-sale manufacturer, new or used motorcycle dealer, and small trailer dealer (§41-3-201(10)(a)). The applicant's partners, corporate officers, bond indemnitors, and managers must complete it too.
Yes — a salvage vehicle buyer license, applied for on the TC-305. It's in addition to your dealer license, not instead of it. Without it you may not bid on or purchase salvage or nonrepairable vehicles at a motor vehicle auction.
Yes — a salesperson license. It's listed in §41-3-201(2) as its own category and is held by the individual rather than the business.
Yes. A supplemental license is required for each additional place of business under §41-3-201(8) and §41-3-201.7.
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