Skip to content
All state guides Minnesota dealer license

How to get a used car dealer license in Minnesota

You apply to Minnesota Driver and Vehicle Services (DVS) for a used motor vehicle dealer license with a $50,000 bond and a $250 fee. The location must pass a commercial building checklist, and since January 1, 2026 every owner needs a fingerprint background check.

  • Sourced to DVS
  • Checked October 2026
  • Free
License
Used motor vehicle dealer license
Surety bond
$50,000
State fee
$250
Pre-license course
None required
Background check
Fingerprints, all owners
License term
1 year, $150 renewal
What the state asks for

Minnesota dealer license requirements

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

Surety bond
$50,000Official source

A corporate surety bond filed on DVS form PS2446. It covers losses to the state and to anyone who buys from or sells to you if you break the dealer laws or fail to pay taxes and fees.

State license fee
$250Official source

$250 for the first license: a $100 initial fee plus the $150 annual fee. Dealer plates are extra, at $86 each for the first four and $51 each after that.

Pre-license education
None requiredOfficial source

DVS does not list a pre-licensing course or exam for a used dealer license. It publishes training videos and guides for dealers, but the application does not ask for a course certificate.

Background check
Fingerprints, all ownersOfficial source

Since January 1, 2026, every owner, officer, board member, governor and shareholder with 5 percent or more needs a fingerprint check through the BCA. It costs $32 by mail or $42 in person.

Insurance
30/60/10 plus UM/UIM and PIPOfficial source

Liability coverage on every vehicle held for sale: $30,000 per person, $60,000 per accident, $10,000 property damage, $25,000/$50,000 uninsured and underinsured, and $20,000 medical plus $20,000 non-medical PIP.

Business location
Commercial building + 5-car displayOfficial source

A permanent, enclosed commercial building with its own entrance and address, a display area for at least 5 vehicles, a sign, posted hours, and a lease of at least one year if you do not own it.

License term and renewal
1 year, $150 renewalOfficial source

The license runs for one year starting with the month it is issued. Renewal is $150, and a late renewal adds a $100 late fee.

Sales allowed without a license
5 vehicles in 12 monthsOfficial source

You need a dealer license once you sell or lease more than five vehicles in a 12-month period, or if you are in the business of selling vehicles at all. Pioneer and classic vehicles are not counted.

Processing time
3 to 5 daysOfficial source

DVS lists a processing time of three to five days. By law it first grants a 90-day temporary license, inspects the site in that period, and must grant or deny the license within 180 days.

“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

Minnesota Department of Public Safety, Driver and Vehicle Services

License you apply for

Used motor vehicle dealer license

Official licensing page

Background checks started January 1, 2026

The fingerprint background check is a new requirement. The posted application form is dated 11/19 and does not mention it, so follow the DVS background check page as well as the form. DVS does not run the check itself. You send the consent form and fingerprints to the BCA, and your application is incomplete until the results reach DVS.
Step by step

How to get a Minnesota dealer license

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

Your progress0 of 7 steps
Saved on this device

  1. Set up the business and list every owner

    Register the business and get your Minnesota tax ID number. List every owner, officer, board member, governor and shareholder with 5 percent or more, because each one signs the application and is background checked. Use the same legal name on the lease, bond and insurance.

    MN Tax ID number

  2. Qualify the building and zoning first

    Find a commercial building that meets every line of the commercial location checklist, then have your local zoning official sign the zoning verification. DVS tells applicants to file only once the location meets the whole checklist. A misstatement on the checklist can get the license denied.

    PS2410, PS2421, PS2407

  3. Have every owner fingerprinted

    Each person named on the application completes the background check consent and a fingerprint check through the Bureau of Criminal Apprehension (BCA). Mail a paper fingerprint card with $32, or book a BCA appointment for $42. DVS treats your application as incomplete until it receives the results.

    PS2402 · $32 by mail, $42 in person

  4. Buy the bond and the insurance

    Have a surety issue the $50,000 bond on the DVS form. Buy liability coverage for every vehicle held for sale at Minnesota's minimum limits, including uninsured, underinsured and personal injury protection. Keep the declarations page for the application.

    PS2446 · $50,000

  5. File the application with DVS

    Send the application, signed by every person named on it in front of a notary, with a copy of each owner's driver's license, the checklist, zoning form, lease form or proof of ownership, bond, workers' compensation certificate, insurance page and plate order. The $250 fee is paid by check or money order to DVS.

    PS2401 · $250

  6. Pass the site inspection

    When a complete application and fee are filed, the law has DVS grant a 90-day temporary license and inspect the place of business during that period. DVS can extend it 30 days so you can fix problems, and it must grant or deny the license within 180 days.

    Minn. Stat. 168.27, subd. 11

  7. Order plates and open

    Dealer plates are $86 each for the first four and $51 each after that, and plate fees are not prorated. Display the license in a prominent place at the dealership, and keep your records available for inspection for at least four consecutive hours once a week.

    PS2405

Practical advice

Treat the commercial location checklist as the real test. Walk the building with it before you sign a lease: separate outdoor entrance, separate address, floor to ceiling walls, room to display five vehicles. An applicant who is denied must wait one year to reapply, so email the DVS dealer unit about any shared or mixed-use building before you commit to it.

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

Minnesota dealer location requirements

What the state checks at the business address.

  • A permanent, enclosed commercial building on a permanent foundation, with sewer and water service or other sanitation that meets local code.
  • A separate, identifiable entrance that leads outdoors and its own address. Customers cannot reach the dealership through another business or a residence.
  • A display area, indoors or outdoors, large enough for at least 5 vehicles and used only by your dealership.
  • An outside sign that names the dealership, in letters that contrast sharply with the background, readable in daylight from the nearest road or street.
  • Normal business hours posted where the public can see them, with staff or an automatic answering service available during those hours.
  • If you lease, a lease of at least one year, shown on form PS2407. Owners attach proof of ownership instead.
  • Local zoning approval, signed by your zoning official on form PS2421.

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 Minnesota dealer license

Renewal and ongoing duties

Renew every year for $150. A late renewal adds $100, and a renewal started more than 60 days after the license expires needs a new background check, as does adding an owner. Keep the bond and insurance in force, because DVS can cancel the license if either one lapses or if you stop operating at the licensed location.

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

Minnesota dealer license FAQ

The questions first-time dealers ask most.

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

Apply to Driver and Vehicle Services (DVS) with form PS2401. You need a commercial building that passes the commercial location checklist, zoning verification, a $50,000 surety bond, liability insurance, a workers' compensation certificate and a fingerprint background check for every owner. The first license costs $250. DVS grants a 90-day temporary license, inspects the site, then issues the one-year license.

How much is the dealer bond in Minnesota?

$50,000 for a used motor vehicle dealer. It is a corporate surety bond filed on DVS form PS2446. Only dealers in certain small trailers and motorized bicycles post the lower $5,000 bond.

How much does a Minnesota dealer license cost?

The first license is $250, which is a $100 initial fee plus the $150 annual fee. Renewal is $150 a year, with a $100 late fee. Dealer plates are $86 each for the first four and $51 each after that. The background check is $32 by mail or $42 in person at the BCA, per person, and the bond and insurance premiums are separate.

Do I need a pre-licensing course in Minnesota?

No. DVS does not list a course or an exam for a used dealer license, and the application does not ask for a training certificate. DVS does publish training videos and guides for dealers.

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

Not as a used dealer. You need a commercial building with its own entrance and address and a display area, indoors or outdoors, that holds at least 5 vehicles. Wholesaler, lessor and broker licenses need only commercial office space, but those are different licenses.

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

Up to five in a 12-month period. State law treats the sale, purchase or lease of not more than five vehicles in 12 months as isolated or occasional sales. Sell or lease more than five, or operate as a business selling vehicles, and you need a dealer license.

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 DVS or your attorney before you sign a lease or pay a fee.

Spotted something out of date? Tell us

Plan the rest of the launch

Get started

Open your Minnesota dealership on one platform

AutoDealer.io runs inventory, deals, F&I, title paperwork and your dealer website, built for independent dealers. Start your free trial.

Start your free trial Talk to us