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How to get a used car dealer license in North Dakota

You apply to NDDOT's Motor Vehicle Division on form SFN 2932 for a used motor vehicle dealer license, with a $25,000 bond and garage liability insurance. Your office, lot and sign must pass an NDDOT inspection first, and NDDOT says to allow 4 to 6 weeks for it.

  • Sourced to NDDOT
  • Checked October 2026
  • Free
License
Used motor vehicle dealer license
Surety bond
$25,000
State fee
$200 first year
Pre-license course
None required
Background check
No fingerprints listed
License term
1 year, expires December 31
What the state asks for

North Dakota dealer license requirements

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

Surety bond
$25,000Official source

A continuous surety bond running to the State of North Dakota, filed on NDDOT form SFN 2933 before the license is issued. The license is issued in the business name shown on the bond.

State license fee
$200 first yearOfficial source

$100 annual license fee, which includes one dealer plate, plus a one-time, nonrefundable $100 initial inspection fee. Extra dealer plates are $20 each.

Pre-license education
None requiredOfficial source

NDCC chapter 39-22 and the SFN 2932 application list no pre-licensing course or exam. You sign a statement that you have reviewed Title 39 and will comply with it.

Background check
No fingerprints listedOfficial source

The statute and the SFN 2932 application list no fingerprint or criminal background check. You give the business's federal employer ID number, or your Social Security number if you apply as an individual.

Insurance
Garage liability, no set limitOfficial source

Proof of a continuous liability policy for the business that covers general, business automobile, and sales, repair or service operations as they apply. The statute sets no dollar minimum.

Business location
250 sq ft office, 2,500 sq ft siteOfficial source

A permanent enclosed building of at least 250 square feet next to your main display lot. Building and lot together must cover at least 2,500 square feet on property zoned or approved for vehicle sales.

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

Every dealer license expires December 31. Renewal is $100 with one plate included, plus a $100 late fee if you miss the deadline. NDDOT may not renew a dealer that made fewer than 8 retail sales the year before.

Sales allowed without a license
No number in statuteOfficial source

North Dakota law sets no vehicle count. Anyone engaged in the business of buying, selling or exchanging motor vehicles, or buying them for resale, needs a dealer license. Confirm your situation with NDDOT.

Processing time
4 to 6 weeks for inspectionOfficial source

NDDOT asks applicants to allow 4 to 6 weeks for the site inspection to be completed before a dealer license is issued. It does not publish a total processing time.

“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 Dakota Department of Transportation, Motor Vehicle Division

License you apply for

Used motor vehicle dealer license

Official licensing page

Low-volume dealers can lose the license at renewal

NDDOT may not renew a new or used dealer license if you made fewer than 8 retail sales in the previous year. Only vehicles that need a title and registration count, so trailer or powersports sales under your license do not help. Also note that the Dealer Handbook posted by NDDOT is dated April 2021. Check details against the current application and statute.
Step by step

How to get a North Dakota 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 motor vehicle dealer license

    NDDOT issues several dealer license types. The used motor vehicle dealer license lets you buy, sell and exchange used motor vehicles. To also sell trailers or motor-powered recreational vehicles under it, your bond has to meet the bond rules for those dealer types.

    NDCC 39-22-14 and 39-22-16

  2. Set up the business under one legal name

    Form the business and get a federal employer identification number. The application asks for it, or for your Social Security number if you apply as an individual. NDDOT issues the license in the business name on your bond, so use the same name on the bond, the insurance policy and the application.

    FEIN required on SFN 2932

  3. Secure a site that meets the size rules

    You need a permanent enclosed building of at least 250 square feet next to your display lot, and at least 2,500 square feet of building and lot combined. Get the property zoned or approved for vehicle sales by the local zoning authority before you commit to it. A home office does not qualify.

    NDCC 39-22-15

  4. Put up the sign and equip the office

    Install a sign of at least 32 square feet with the dealership name in letters at least 10 inches high, visible from the street. List a telephone in the dealership's name, set normal business hours, and equip the office with heat, light and standard office equipment. Plan to keep all records and titles there.

    32 sq ft sign, 10 inch letters

  5. Get the $25,000 bond and liability insurance

    Have a surety company licensed in North Dakota complete NDDOT's bond form for $25,000. Buy a continuous liability policy that covers your general, business automobile and sales or service operations. Proof of both goes in with the application.

    SFN 2933 · NDCC 39-22-19

  6. File SFN 2932 with the fees

    Mark the application as initial and select used motor vehicle dealer. Send it to the Motor Vehicle Division in Bismarck with the bond and proof of insurance. Pay the $100 license fee, the $100 nonrefundable initial inspection fee and $20 for each extra dealer plate, by check payable to the Department of Transportation.

    SFN 2932 · $200 plus plates

  7. Pass the inspection before you sell

    A Motor Vehicle representative inspects the location and records whether it passed. NDDOT asks you to allow 4 to 6 weeks for the inspection before the license is issued. Do not buy or sell vehicles as a business until you hold the license.

    Allow 4 to 6 weeks

Practical advice

Measure before you sign a lease. The 250 square foot building, the 2,500 square foot combined site and the 32 square foot sign are written into the statute, and a small lot can miss any of them. Every license expires December 31, so ask Dealer Services at 701-328-1285 how a license issued late in the year is treated at renewal, and plan your first year around the 8 retail sale minimum.

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 Dakota dealer location requirements

What the state checks at the business address.

  • A permanent enclosed building of at least 250 square feet that you own, rent or lease. A residence, tent or temporary stand does not qualify.
  • The building must sit next to your main display lot, and the building and lot together must cover at least 2,500 square feet.
  • The property must be zoned or otherwise approved for vehicle sales by the local zoning authority.
  • A sign of at least 32 square feet showing the dealership name in letters at least 10 inches high, clearly visible from the street.
  • A telephone publicly listed in the dealership's name, and the business open to the public during normal business hours.
  • A heated, lighted office with standard office equipment, where all business records and vehicle titles are kept.
  • Any secondary lot must be within 5 miles of the main location and carry its own 32 square foot sign with the dealer's name and phone number.

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 Dakota dealer license

Renewal and ongoing duties

Renew by December 31 each year on SFN 2932 with the $100 fee, or pay a $100 late fee. Keep the bond and liability insurance continuous. You need at least 8 retail sales in the prior year to renew. Dealers may not sell motor vehicles on Sunday, and you need NDDOT's permission before you move to a new 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

North Dakota dealer license FAQ

The questions first-time dealers ask most.

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

Set up a qualifying location (a 250 square foot permanent building next to your lot, 2,500 square feet in total, with a 32 square foot sign), get a $25,000 surety bond and garage liability insurance, then file form SFN 2932 with NDDOT's Motor Vehicle Division and pay $200 in license and inspection fees. NDDOT inspects the site before it issues the license and asks you to allow 4 to 6 weeks for that inspection.

How much is the dealer bond in North Dakota?

$25,000 for a new or used motor vehicle dealer. It is a continuous surety bond that runs to the State of North Dakota and is filed on NDDOT form SFN 2933. The surety can cancel it with 30 days' written notice, so keep the premium paid.

How much does a North Dakota dealer license cost?

The used motor vehicle dealer license fee is $100 a year and includes one dealer plate. A first-time applicant also pays a nonrefundable $100 initial inspection fee, so the first filing costs $200. Additional dealer plates are $20 each. The bond premium and insurance are separate costs.

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

No course or exam appears in the dealer licensing statute or on the SFN 2932 application. You sign a statement that you have received and reviewed the provisions of Title 39 of the North Dakota Century Code that apply to your dealership and will comply with them.

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

No. The law requires an established place of business next to your primary display lot. That means a permanent enclosed building of at least 250 square feet, with at least 2,500 square feet of building and lot combined, on property zoned for vehicle sales. A residence, tent or temporary stand does not count.

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

North Dakota law does not give a number. A dealer license is required for anyone engaged in the business of buying, selling or exchanging motor vehicles, or who advertises as doing so or buys vehicles for resale. Unlicensed dealing can bring a $100 fee for a first violation and higher fees for repeat violations. Ask NDDOT if you are unsure whether your sales count.

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

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