The shift away from in-person inspections has created a loophole that puts both honest businesses and Washington consumers at risk. We are seeing a rise in "paper-only" dealerships where dozens of licenses are tied to a single small office with no actual cars on site. This lacks the accountability required by law and makes it harder for buyers to get help with warranty or title issues.

WSIADA sent the following letter to Governor Ferguson to highlight these concerns. We are asking the state to restore physical inspections as part of the licensing process to ensure every dealer follows the same high standards. Protecting the integrity of our industry is the only way to maintain a fair marketplace for everyone.

March 23, 2026

Governor Bob Ferguson
Legislative Building
PO BOX 40002
Olympia, WA 98501

Via e-mail

Dear Governor Ferguson,

The Washington State Independent Auto Dealers Association (WSIADA) writes to request your support of Senate Bill 6005, relating to transportation fiscal matters, specifically Sec. 208, subsection 30.

WSIADA represents approximately 550 non-franchise, small business auto dealers across Washington State who serve consumers through the sale of pre-owned vehicles. In 2019, the Department of Licensing changed the initial licensing process for motor vehicle dealer applicants, eliminating in-person place of business inspections and replacing them with an emailed attestation form. Applicants are now asked to certify compliance with RCW and WAC requirements by checking boxes on a PDF, without verification of an actual operating location.

We are now seeing this structure misused across the state.

There are locations with more than 90 licensed dealers operating out of spaces the size of a small office, with no vehicles on site and no true place of business. This is not isolated, and it continues to grow. This creates a real risk for Washington consumers. When there is no legitimate place of business, customers have no meaningful recourse for warranty issues, merchantability concerns, or access to required records. It also raises concerns around lack of required insurance coverage and the failure to remit proper taxes and fees to the state.

At the same time, these licenses provide access to national auto auctions and dealer plates, allowing individuals to operate under the appearance of legitimacy while not complying with the same standards as licensed dealers. We are also seeing a connection between these licenses and increased online vehicle fraud through platforms such as Facebook Marketplace and similar sites.

Place of business requirements exist to protect consumers and to ensure accountability within the marketplace. Today, that protection has been weakened, and compliant dealers are operating alongside individuals who are not meeting the same standards.

WSIADA is the only nonprofit association in Washington dedicated to supporting independent auto dealers through Washington State required new dealer licensing and continuing education to maintain endorsements. We work closely with all independent dealers, not just our members, to prepare them for compliance, inspections, and responsible operation within state law.

The number one request we hear from our members is clear: they want to operate correctly, and they want bad actors held accountable. Our members are not asking for less oversight. They are asking for consistent enforcement that protects consumers and preserves a fair marketplace.

The Department of Licensing has also indicated that they are facing a backlog in investigations, which limits the state's ability to respond after issues occur. Restoring in-person inspections as part of the licensing process is a practical and necessary step to address these challenges before harm is done.

We respectfully ask that you approve this section of the budget. WSIADA stands ready to work with your office and the Department of Licensing to support implementation and continue strengthening compliance across our industry.

Gratefully,

Jessi Roberts
Executive Director
WSIADA