This can be done but it’ll require a little bit of a work around.
At the moment Webflow doesn’t allow you to nest a collection inside another collection, so for example if you have your collection “dealers” and a collection “states” you can’t then show the ‘states’ and inside of each of them the ‘dealers’
BUT (and this is a big but)
you can use a plugin called Mix it Up to sort your collection ‘dealers’ by ‘states’. Here’s the reference topic so you can go and see how to implement it in your site.
Hope this helps.