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How to get a used car dealer license in Kansas

You mail form D-17A to Kansas Department of Revenue Dealer Licensing with a $50,000 bond, state and county tax clearances and proof of insurance. The license is issued after a site inspection and a dealer training class.

  • Sourced to KDOR Dealer Licensing
  • Checked October 2026
  • Free
License
Used vehicle dealer license
Surety bond
$50,000
State fee
$75 per year
Pre-license course
Dealer training class at issuance
Background check
Felony disclosure, no fingerprints
License term
1 year, expires December 31
What the state asks for

Kansas dealer license requirements

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

Surety bond
$50,000Official source

A corporate surety bond on form D-20, with the power of attorney attached. You may instead deposit at least $50,000 in cash or approved securities with the State Treasurer.

State license fee
$75 per yearOfficial source

Used vehicle dealer license fee for the calendar year or any part of it. The first dealer plate adds $275.50, and form D-17A lists each additional plate at $30.50.

Pre-license education
Dealer training class at issuanceOfficial source

There is no course to take before you apply. Once your file is approved, KDOR emails an invitation to a Dealer Training class, and you receive the license when you complete it. KDOR does not publish the class length.

Background check
Felony disclosure, no fingerprintsOfficial source

Form D-17A asks whether you were convicted of a felony in the past five years and whether a dealer license was ever denied, suspended or revoked. The form and its checklist do not call for fingerprints.

Insurance
25/50/25 liability minimumOfficial source

Public liability and property damage coverage at the Kansas minimum limits: $25,000 per person, $50,000 per accident and $25,000 property damage. The insurer sends the certificate to KDOR in the exact business name and address.

Business location
Office, lot, sign, listed phoneOfficial source

A building that is not a residence, a phone listed in the business name, a sign with letters at least 10 inches high, zoning approval and enough lot space for your vehicles. The division inspects it before licensing.

License term and renewal
1 year, expires December 31Official source

Dealer licenses expire December 31 of the calendar year they are issued for. KDOR emails renewals in early November. Renewal costs $75 and needs a current tax clearance.

Sales allowed without a license
4 per calendar yearOfficial source

KDOR treats anyone who sells 5 or more vehicles in a calendar year as a dealer. Buying a vehicle with the intent to resell it for profit makes you a dealer at any number.

Processing time
Decision within 30 days by statuteOfficial source

Kansas law says a license is granted or refused within 30 days after the director receives the application. KDOR's 6 to 8 week notice on form D-17A applies to new/used (franchise) dealer applications.

“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

Kansas Department of Revenue, Division of Vehicles, Dealer Licensing

License you apply for

Used vehicle dealer license

Official licensing page

KDOR's posted handbook still shows old amounts

The Dealer Licensing & Salesperson Handbook on the KDOR site is dated 6/2018. It lists a $30,000 bond and 25/50/10 insurance limits. State law now sets the bond at $50,000 (in effect since January 1, 2022) and the minimum property damage limit at $25,000, and form D-17A shows the $50,000 bond. Follow the statute and the current D-17A, and confirm plate fees with Dealer Licensing.
Step by step

How to get a Kansas dealer license

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

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  1. Register the business and get tax clearance

    Register for Kansas sales tax under the exact name you will use on the dealer application. Then request a Certificate of Tax Clearance online for the business and for each owner. A request submitted by 5 p.m. on a weekday is ready the next business day.

    ksrevenue.gov/taxclearance.html

  2. Secure and equip the location

    Own or lease a non-residential building with lot space, put up a sign with letters at least 10 inches high, and get a phone listed in the business name. Have the city or county zoning agent sign and seal the zoning section of form D-17A.

    K.S.A. 8-2404

  3. Get the county tax sign-off and references

    The county treasurer where the dealership sits signs the personal property tax certification on form D-17A. Sole proprietors and partnerships attach three credit references on business letterhead. Corporations and LLCs attach their Kansas Secretary of State filing instead.

    Form D-17A, items 3 and 12

  4. Arrange the $50,000 bond and insurance

    Have a surety authorized in Kansas issue the bond on form D-20 with its power of attorney, written in the legal name that matches your entity type. Ask your insurer to send KDOR a certificate of insurance showing the business name and address from the application.

    Form D-20 · $50,000

  5. Mail form D-17A with fees and exhibits

    Send the completed application, original bond, tax clearance certificates, sales tax certificate, entity papers or credit references, and the fees to Dealer Licensing in Topeka. The used dealer license is $75 and the first dealer plate is $275.50. New dealers can start with up to 3 plates per plate type.

    D-17A · $75 + $275.50 first plate

  6. Pass the inspection and attend dealer training

    The division inspects and approves your place of business. When the license is ready, KDOR emails an invitation to a Dealer Training class. You receive the dealer license when you complete the class.

    Inspection, then training

  7. Set up the dealer portal and salespeople

    Register on the KDOR Customer Service Center to reach the dealer portal, where you print 60-day temporary permits and manage the license. Each employee who sells needs a $25 salesperson license and must pass a written test. A licensed dealer who sells personally does not need one.

    Salesperson license · $25

Practical advice

Start the tax clearances first. They cover the business and every owner, and an old unpaid balance or a name mismatch with your sales tax registration will stall the file. Line up the county treasurer, the zoning agent and the insurer in the same week so their signatures and certificates all show the same business name and address.

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

Kansas dealer location requirements

What the state checks at the business address.

  • A building or structure you own or lease that is not used as a residence, set up as an office where you receive mail and keep records.
  • An operable telephone listed with the phone company under the name of the licensed business.
  • A sign with durable lettering at least 10 inches high, easily visible from the street (smaller only where local zoning requires it).
  • Zoning approval for the address. The local zoning agent completes, signs and seals the zoning section of form D-17A.
  • Lot space, owned or leased, large enough to display at least as many vehicles as the dealer plates assigned to you.
  • The division inspects and approves the location before licensing. The first inspection is free and each repeat inspection is $30.

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 Kansas dealer license

Renewal and ongoing duties

Renew before December 31 each year ($75, plus plate fees) with a fresh tax clearance. Keep the bond and insurance in force without a gap: when insurance is canceled the license is void on that date. Tell your surety about any name, address or ownership change. Salesperson licenses run on their own calendar and expire June 30.

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

Kansas dealer license FAQ

The questions first-time dealers ask most.

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

Set up a non-residential place of business with a sign, a listed phone and zoning approval. Get state tax clearance for the business and each owner, the county treasurer's sign-off, a $50,000 bond and liability insurance. Mail form D-17A with the $75 license fee and plate fees to KDOR Dealer Licensing. After the inspection, you attend a dealer training class and receive the license.

How much is the dealer bond in Kansas?

$50,000. Every used vehicle dealer must furnish a corporate surety bond in that amount under K.S.A. 8-2404, or deposit at least $50,000 in cash or approved securities with the State Treasurer. An older KDOR handbook still shows $30,000, which is out of date.

How much does a Kansas dealer license cost?

The used vehicle dealer license is $75 per calendar year. Dealer plates are extra: the first auto plate is $275.50, and form D-17A lists additional plates at $30.50 each. A supplemental location in the same county is $35. Your bond premium and insurance are paid to private providers.

Do I need a pre-licensing course in Kansas?

Not before you apply. Kansas has no pre-licensing course or exam for the dealer license itself. Once your application is approved, KDOR schedules you for a Dealer Training class and hands over the license when you finish it. Employees who sell must pass a written salesperson test.

Can I get a Kansas dealer license without a car lot?

No. Kansas requires an established place of business in a building that is not a residence, with a listed phone, a sign and zoning approval, and the division must inspect and approve it. You also need enough owned or leased lot space to display at least as many vehicles as the dealer plates you are assigned.

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

Up to four in a calendar year, as occasional sales of your own vehicles. KDOR treats a person who sells 5 or more vehicles in a calendar year as a dealer. It also treats anyone who buys a vehicle intending to resell it for profit as a dealer, whatever the number.

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 KDOR Dealer Licensing or your attorney before you sign a lease or pay a fee.

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