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All state guides North Carolina dealer license

How to get a used car dealer license in North Carolina

You apply on form ISU-400 to the State Highway Patrol's Investigative Services Unit, which took over dealer licensing from the DMV License and Theft Bureau. You need a 12-hour course, a $50,000 bond, a 96 square foot salesroom and an officer's site approval before you file.

  • Sourced to NCSHP Dealer Section
  • Checked October 2026
  • Free
License
Motor vehicle dealer license (used motor vehicle dealer)
Surety bond
$50,000
State fee
$231 (2 years at $115.50)
Pre-license course
12-hour course
Background check
Conviction disclosure, no prints
License term
2 years
What the state asks for

North Carolina dealer license requirements

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

Surety bond
$50,000Official source

A corporate surety bond or cash bond: $50,000 for your first established salesroom and $25,000 for each additional one. The surety completes form ISU-409, and the original signed bond goes in with the application.

State license fee
$231 (2 years at $115.50)Official source

The dealer license certificate is $115.50 a year and licenses are issued for 2 years, so you pay $231 at filing. Dealer plates ($46.25 each per year for the first 5) and sales representative licenses ($25.50 a year) are extra.

Pre-license education
12-hour courseOfficial source

Used dealer applicants must show a certificate for an approved 12-hour licensing course completed within the last 12 months. To renew, the statute calls for a 6-hour course for each year of the license period.

Background check
Conviction disclosure, no printsOfficial source

On ISU-400 you certify whether any owner, partner, member or officer has certain convictions or a prior license denial, suspension or revocation. State law bars the agency from requiring fingerprints for a criminal history check.

Insurance
Garage liability for dealer platesOfficial source

A liability policy or garage liability coverage for your dealer plates. The certificate must show how many plates the policy covers and list the NCSHP Dealer Section as certificate holder. The packet prints no dollar limit.

Business location
96 sq ft salesroom, 3-inch signOfficial source

An established salesroom with at least 96 square feet of floor space in a permanent enclosed building, a trade-name sign in block letters at least 3 inches high, and written zoning approval. The statute sets no minimum lot size.

License term and renewal
2 yearsOfficial source

Every dealer license is granted for 2 years, and expiration dates are staggered through the year. Renewal fees are charged at the same annual rates, and used dealers must also show continuing education.

Sales allowed without a license
4 in any 12 monthsOfficial source

You count as a dealer once you buy, sell or exchange five or more motor vehicles within any 12 consecutive months for money or other value. Disposing of vehicles you bought and actually used yourself, or for family, is excluded.

Processing time
Not publishedConfirm with the agency

The Dealer Section does not publish a processing time for a new dealer license. Your site has to be inspected and approved by an Investigative Services Unit officer before you can submit the application.

“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

North Carolina State Highway Patrol, Investigative Services Unit, Dealer Section

License you apply for

Motor vehicle dealer license (used motor vehicle dealer)

Official licensing page

Licensing moved from the DMV to the Highway Patrol

The DMV License and Theft Bureau was transferred to the State Highway Patrol and renamed the Investigative Services Unit. Form numbers changed from LT to ISU (LT-400 is now ISU-400), and older LT versions are still posted on NCDOT's site. The statutes still refer to the Division, and the temporary tag order form still says to make checks out to NCDMV, so follow the instructions printed on the current ISU form.
Step by step

How to get a North Carolina dealer license

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

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  1. Take the 12-hour licensing course

    Used dealer applicants need a certificate from a 12-hour licensing course approved by the Division of Motor Vehicles, completed within the 12 months before you apply. Community colleges such as Davidson-Davie run approved classes. Keep the certificate, because it goes in with the application.

    G.S. 20-288(a1) · 12 hours

  2. Register the business and its trade name

    File articles with the North Carolina Secretary of State if you are forming a corporation or LLC, and file an assumed name with the county Register of Deeds if you will trade under another name. An out-of-state company needs a North Carolina certificate of authority. Copies of these filings go in with the application.

    Secretary of State, Register of Deeds

  3. Set up the salesroom and get zoning approval

    Secure an office of at least 96 square feet in a permanent enclosed building and put up a sign with the trade name in block letters at least 3 inches high. Get a written zoning approval letter from the city or county. The street address you list must be where the business actually operates.

    G.S. 20-286(6)

  4. Request the site inspection

    Ask for a new dealership inspection through the Investigative Services Unit portal (Request a Service, then Other) and upload your zoning letter, or call the unit's office for your troop. An officer inspects the salesroom. The site must be approved before you send your application to the Dealer Section.

    ISU portal or troop office

  5. Get the bond and garage liability insurance

    Have a surety company complete the ISU-409 bond for $50,000 and attach its power of attorney. Buy garage liability coverage for your dealer plates and ask for a certificate that shows the number of plates covered and lists the NCSHP Dealer Section, 3129 Mail Service Center, Raleigh NC 27697, as certificate holder.

    ISU-409 · $50,000

  6. Complete ISU-400 and the packet forms

    Fill in the ISU-400 application and have it notarized. The packet checklist also calls for ISU-405, the ISU-409 bond and a notarized ISU-426 for each sales representative, plus your course certificate, zoning letter, insurance certificate and entity documents. Submit original forms. Incomplete or illegible forms are not processed.

    ISU-400 (Rev. 02/26)

  7. File with the Dealer Section and pay the fees

    Mail the packet to the Dealer Section at 3129 Mail Service Center, Raleigh, NC 27697-3129, or use the Raleigh or Huntersville office. The license is $231 for two years. Dealer plates are $46.25 each per year for the first five, and each sales representative license is $25.50 a year. Some counties add a transit tax per plate.

    $231 plus plates

Practical advice

Use the current forms from ncshp.gov, numbered ISU and dated 02/26 or later. Older LT forms addressed to the DMV License and Theft Bureau are still online. Talk to the Investigative Services Unit office for your troop before you sign a lease, because the site has to pass inspection before you can file. Watch the date on your course certificate. It is only good for 12 months.

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

North Carolina dealer location requirements

What the state checks at the business address.

  • An established salesroom with at least 96 square feet of floor space in a permanent enclosed building. A tent or temporary stand does not count.
  • A sign at or immediately next to the salesroom showing the trade name in block letters at least 3 inches high on a contrasting background.
  • Written verification from the local authority that the location complies with state, county and municipal zoning rules.
  • The salesroom is where you keep the required books, records and files, and where the public can reach you at reasonable times.
  • The address on the application must be the real business location. A different mailing address is allowed only as a P.O. Box in the same city.
  • You may share a permanent building with another business, as long as your salesroom still meets every requirement.
  • A State Highway Patrol Investigative Services Unit officer must inspect and approve the salesroom before the license is issued.

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 North Carolina dealer license

Renewal and ongoing duties

The license runs 2 years. To renew, used dealers must show a 6-hour continuing education course for each year of the license period, along with a current bond and insurance. Notify the Highway Patrol before you relocate or close, hold an assigned title for every vehicle in stock, and keep your purchase and sale records for 5 years.

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

North Carolina dealer license FAQ

The questions first-time dealers ask most.

How do I get a used car dealer license in North Carolina?

Complete an approved 12-hour licensing course, set up a salesroom of at least 96 square feet with a compliant sign and zoning approval, and have a State Highway Patrol Investigative Services Unit officer inspect and approve it. Then send form ISU-400 with a $50,000 bond, a garage liability insurance certificate, your course certificate and the fees to the Highway Patrol's Dealer Section in Raleigh.

How much is the dealer bond in North Carolina?

$50,000 for your first established salesroom and $25,000 for each additional salesroom. You can post a corporate surety bond on form ISU-409 or a cash bond. The surety can cancel or decline to renew only with 30 days' written notice.

How much does a North Carolina dealer license cost?

The dealer license certificate is $115.50 a year, and licenses are issued for 2 years, so the license itself is $231. Dealer plates cost $46.25 per plate per year for the first five and $23.13 for each one after that. Sales representative licenses are $25.50 a year each. Wake, Orange and Durham counties add $17 per plate per year in transit tax, and Randolph County adds $1.

Do I need a pre-licensing course in North Carolina?

Yes, if you are applying for a used motor vehicle dealer license. You must show that you completed an approved 12-hour licensing course within the last 12 months. At renewal the statute requires a 6-hour course for each year of the license period. A few applicants are exempt, including licensed new vehicle dealers adding a used location within 30 miles of their showroom.

Can I get a North Carolina dealer license without a car lot?

You need an established salesroom, not a lot of a set size. The salesroom must have at least 96 square feet of floor space in a permanent enclosed building, a sign with 3-inch block letters, and zoning approval, and an officer must inspect it. State law does not set a minimum display lot, but local zoning may limit where you can display and sell vehicles.

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

Fewer than five in any 12 consecutive months. State law treats anyone who, for money or other value, buys, sells or exchanges five or more motor vehicles within 12 consecutive months as a dealer. People disposing of vehicles they acquired and actually used for themselves or a family member are excluded from the definition.

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 NCSHP Dealer Section or your attorney before you sign a lease or pay a fee.

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