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How to get a used car dealer license in Illinois

You apply to the Illinois Secretary of State for a used vehicle dealer license, and the $1,000 license fee is due before you attend the required 8-hour state training class. You also need a $50,000 bond, 100/300/50 liability insurance, a fingerprint background check and premises that pass inspection.

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License
Used vehicle dealer license
Surety bond
$50,000
State fee
$1,000 ($500 after June 15)
Pre-license course
8 hours, state-run class
Background check
Live-scan fingerprints required
License term
Calendar year, ends December 31
What the state asks for

Illinois dealer license requirements

The figures a first-time used car dealer needs before applying to Illinois SOS. Each row shows how well it is supported.

Surety bond
$50,000Official source

A $50,000 bond or certificate of deposit for each location, in the business name, running at least to December 31 of the license year. The Secretary of State says dealers must be bonded for their first 60 consecutive months.

State license fee
$1,000 ($500 after June 15)Official source

The annual license fee for your main location is $1,000, or $500 on a first application after June 15. Each extra location is $50, or $25 after June 15. Dealer plates are separate: $45 for the master set and $13 per duplicate set.

Pre-license education
8 hours, state-run classOfficial source

First-time used dealer applicants attend an 8-hour training class given by the Secretary of State, 8 a.m. to 5 p.m. A copy of your application and the license fee must reach the training office at least 2 weeks before the class.

Background check
Live-scan fingerprints requiredOfficial source

Every applicant gets a criminal background check through an Illinois State Police approved live-scan fingerprint vendor and sends the receipt with the application. A forcible felony in the last 10 years means denial.

Insurance
$100,000/$300,000/$50,000Official source

A certificate of liability insurance in the business name for each location: $100,000 bodily injury per person, $300,000 per accident and $50,000 property damage. It must not expire before December 31.

Business location
Office, lot, sign, posted hoursOfficial source

A permanent office that is not in a residence, a surfaced lot or indoor showroom, a permanent sign visible from the road, a listed phone, and posted hours of at least 4 straight hours a day, 5 days a week.

License term and renewal
Calendar year, ends December 31Official source

Every dealer license expires December 31 of the year it was issued for. Renewal notices go out in September, and the Secretary of State asks for your renewal by November 15 so the new certificate and plates arrive by January 1.

Sales allowed without a license
4 per yearOfficial source

You need a used vehicle dealer license to sell or deal in 5 or more used vehicles during the year. Acting as a broker or go-between for a dealer or a buyer takes a license at any volume.

Processing time
2 to 4 weeksOfficial source

The Secretary of State asks you to allow 2 to 4 weeks for document and fee processing and for its staff's investigation, which includes the site inspection, before the license is issued.

“Official source” means the state agency’s own page, form or law. Where the state’s sources did not settle a point, the row says so instead of showing a guess.

Who issues the license

Illinois Secretary of State, Vehicle Services Department, Dealer Licensing Section

License you apply for

Used vehicle dealer license

Official licensing page

Check the June 15 cutoff and the recovery fund fee

The $500 half-year fee is worded three ways. State law applies it to an application made after June 15. The application form says first registration June 15 to December 31. The training page says $1,000 for a class before June 15 and $500 from June 16. Near that date, confirm the amount with the training office. State law also sets a Dealer Recovery Trust Fund fee of up to $500. Ask if you owe it at first filing.
Step by step

How to get a Illinois dealer license

The order that works for a first application. Tick each step off as you finish it.

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  1. Choose the used vehicle dealer license

    Illinois issues no wholesale, auction or broker license, and it will not license you just to attend dealer auctions. A used car lot applies as a used vehicles only dealer on the Dealer License Application. Set up the business and register with the Illinois Department of Revenue, because the application asks for your Retailers' Occupation Tax number.

    Dealer License Application, VSD 324

  2. Prepare premises that will pass inspection

    Set up a permanent office outside any residence, a surfaced lot or indoor showroom, a permanent sign visible from the road, a listed business phone and posted hours. Get the notice of proper zoning form completed. In Chicago a copy of your city business license is accepted instead. A lease must run through December 31 of the license year.

    Illinois Administrative Code 1020.10

  3. Register for the 8-hour training and pay the fee

    Pick a class from the Secretary of State's list. At least 2 weeks before it, mail a copy of your completed application and a check for the license fee to Dealer License Training in Springfield: $1,000 for a class before June 15, $500 for a class on June 16 or later. Leave the plate fees out at this stage. Without these items you are not admitted to the class.

    Dealer training: 217-785-2050

  4. Get fingerprinted for the background check

    Book a live-scan appointment with a vendor approved by the Illinois State Police and keep the receipt. An application without the fingerprint receipt is returned. A forcible felony conviction in the last 10 years leads to denial, so settle any question about your record before you pay for the class.

    625 ILCS 5/5-105

  5. Buy the bond and the insurance

    Get an original $50,000 Illinois vehicle dealer's bond, or a certificate of deposit, in the business name. Get a certificate of insurance for at least $100,000 per person, $300,000 per accident and $50,000 property damage. The business name and address on both must match the application, and neither may expire before December 31.

    $50,000 bond · 100/300/50

  6. Attend the class and assemble the packet

    Complete the training and keep the receipt. Add the lease, zoning form, bond, insurance certificate and fingerprint receipt, plus proof of a hazardous waste generator number if you run a repair shop. State law also has you name an Illinois resident who acts as the dealer's agent or legal representative.

    Instructions for Dealer License, VSD 659

  7. File the original application in Springfield

    Mail the signed and notarized original application with every supporting document together to the Dealer Licensing Section, 501 S. Second St., Springfield, IL 62756. A packet with anything missing is rejected. Do not file until the site is ready, because the Secretary of State schedules the inspection once it has reviewed your packet.

    Dealer Licensing: 217-782-7817

  8. Pass inspection, then get plates and TRP access

    Allow 2 to 4 weeks for processing and the inspection. A newly licensed dealer can get one master set of dealer plates ($45), up to seven duplicate sets ($13 each) and up to eight additional duplicate sets ($151 each). Your username and password for Temporary Registration Permits are assigned after the license is issued.

    2 to 4 weeks

Practical advice

Put the class date and its 2-week deadline on one calendar, and remember that the license fee travels with the class paperwork. Every license ends December 31, so a first application after June 15 costs half but covers only the rest of that year. Hold the final packet until the office, sign and lot are finished, because the inspection is scheduled from that filing.

Before you apply

Seven things to settle before any state application: the business, the owners, the money and the property.

Read the startup playbook
The lot and the office

Illinois dealer location requirements

What the state checks at the business address.

  • Office space in a building on a fixed foundation, with the equipment and records needed to run the business. It cannot be in a residence.
  • A working business phone with its number published in the local directory. The dealership address and phone cannot be your home address and phone.
  • The dealership name on the front entrance door, plus a sign on that door listing the days and hours you are open.
  • Open at least 5 days out of every 7 for at least 4 consecutive hours a day, with an employee on site who can do business with the public.
  • A lot surfaced with rock or better, separate from any other business and lit if you open after dark. A lit indoor showroom can replace the lot.
  • A permanent sign with the dealership name, visible from the highway that leads to the business and lit if you open after sundown.
  • If you lease, a lease that runs through December 31 of the license year. Two dealers cannot be licensed at the same location.

Zoning comes first

A site that meets the state’s rules can still fail local zoning. Get written approval for vehicle sales from the city or county, and ask the landlord for a lease that depends on the license being issued, before you sign.
Once you are licensed

Keeping a Illinois dealer license

Renewal and ongoing duties

The license ends every December 31. Send the renewal by November 15 with an insurance certificate that runs through the next December 31, and your bond if you were first licensed in the past 60 months. Report any change to the facts on your application within 30 days. Keep your books and records for three years and open to inspection.

Federal rules that apply here too

  • The FTC Buyers Guide, posted on every used vehicle you offer for sale.
  • The FTC Safeguards Rule: a written plan for protecting customer financial information.
  • IRS Form 8300 when a customer pays more than $10,000 in cash.
  • A federal odometer disclosure on each transfer.
How each federal rule works
FAQ

Illinois dealer license FAQ

The questions first-time dealers ask most.

How do I get a used car dealer license in Illinois?

Apply to the Illinois Secretary of State, Dealer Licensing Section, on the Dealer License Application (VSD 324). First-time used dealers attend an 8-hour state training class, and the license fee is due before the class. You also file a $50,000 bond, a liability insurance certificate, a fingerprint background check receipt, your lease and a zoning form. The Secretary of State inspects your place of business before it issues the license.

How much is the dealer bond in Illinois?

$50,000 for each location, as a bond or a certificate of deposit in the business name. It must run at least to December 31 of the license year. The Secretary of State says dealers must be bonded for their first 60 consecutive months in business, as long as they have not been late or short in sending title and registration fees or taxes.

How much does an Illinois dealer license cost?

The annual license fee is $1,000 for your main location, or $500 on a first application after June 15. Each additional location is $50, or $25 after June 15. Dealer plates are extra: $45 for the master set and $13 for each duplicate set. State law also sets a Dealer Recovery Trust Fund fee of up to $500 a year, so ask the Dealer Licensing Section whether it applies to your first application.

Do I need a pre-licensing course in Illinois?

Yes. Anyone applying for a used car dealer's license for the first time must attend an 8-hour training given by the Illinois Secretary of State before a license is issued. The class runs from 8 a.m. to 5 p.m. A copy of your completed application and the license fee must reach the training office at least 2 weeks before your class.

Can I get an Illinois dealer license without a car lot?

No. You need an established place of business with a permanent office that is not in a residence, a surfaced lot or a lit indoor showroom, a permanent sign and posted business hours. Illinois does not issue a wholesale, auction or broker license, and it will not issue a dealer license only so you can attend dealer auctions.

How many cars can I sell in Illinois without a dealer license?

Four in a year. State law requires a used vehicle dealer license to sell or deal in 5 or more used vehicles during the year. You also need the license at any volume if you act as an intermediary, agent or broker for a dealer or a vehicle buyer, or advertise that you are in the business.

Sources

Checked October 2026. This is general information, not legal, tax or insurance advice. Fees, bond amounts and forms change, and local zoning rules vary. Confirm current requirements with Illinois SOS or your attorney before you sign a lease or pay a fee.

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