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All state guides Pennsylvania dealer license

How to get a used car dealer license in Pennsylvania

You apply online in PALS to the State Board of Vehicle Manufacturers, Dealers and Salespersons for a vehicle dealer license ($190) and pass a facility inspection. Then you register with PennDOT, which requires a $20,000 bond, to get your Dealer Identification Number and dealer plates.

  • Sourced to PA Vehicle Board
  • Checked October 2026
  • Free
License
Vehicle dealer license
Surety bond
$20,000 (filed with PennDOT)
State fee
$190
Pre-license course
None on Board checklist
Background check
State police record check
License term
2 years, $274 renewal
What the state asks for

Pennsylvania dealer license requirements

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

Surety bond
$20,000 (filed with PennDOT)Official source

The Board's dealer license checklist lists no bond. PennDOT requires a $20,000 bond for each place of business, on Form MV-375, when you apply for dealer registration and plates.

State license fee
$190Official source

The Board's dealer license application fee since July 1, 2025. It is not refundable. A failed facility inspection adds a $45 re-inspection fee. PennDOT plate fees are separate.

Pre-license education
None on Board checklistOfficial source

The Board's application checklist for a vehicle dealer has 15 items, and none of them is a course or an exam.

Background check
State police record checkOfficial source

Each owner uploads a state police criminal history check for every state lived or worked in during the past five years, dated within 180 days. PennDOT also wants an original Pennsylvania State Police record.

Insurance
Liability proof for PennDOT platesOfficial source

The Board's checklist lists no insurance. PennDOT requires proof of liability insurance covering as many vehicles as the number of dealer plates you apply for. No dollar limit is printed on the form.

Business location
Building, office, 5-car displayOfficial source

A permanent enclosed building, a private office, a surfaced display area that holds at least five vehicles with doors open, a business landline and a sign. The Board inspects the site before it approves the license.

License term and renewal
2 years, $274 renewalOfficial source

Board licenses renew every two years. The current renewal period runs June 1, 2025 to May 31, 2027, and the dealer renewal fee is $274. PennDOT dealer plates renew for one or two years.

Sales allowed without a license
4 per calendar yearOfficial source

The law exempts a person who sells, exchanges or buys fewer than five vehicles in one calendar year, if that person paid sales tax when buying them. The fifth vehicle requires a dealer license.

Processing time
Not publishedConfirm with the agency

The Board does not publish a processing time for a dealer license. An application left incomplete for six months needs updated documents.

“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

Pennsylvania Department of State, State Board of Vehicle Manufacturers, Dealers and Salespersons

License you apply for

Vehicle dealer license

Official licensing page

Two bond amounts appear in PennDOT's papers

PennDOT's bond form lists $20,000 for each place of business for a dealer and $30,000 for a full agent. Its dealer requirements packet also includes an agent services checklist that asks for a $30,000 bond. If you plan to issue temporary registration plates, ask PennDOT Dealer Services which amount applies to you before you buy the bond.
Step by step

How to get a Pennsylvania 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 its name

    File the entity with the Department of State's Corporation Bureau and register any fictitious name. The Board asks for the approved registration documents. Choose a name that tells the public you are a vehicle dealership. It cannot suggest rental, leasing, wholesale or brokering.

    Corporation Bureau filing

  2. Secure a location that can pass inspection

    Get zoning documentation from the municipality and a certificate of occupancy before you commit. You need a deed or a lease of at least six months that shows the dealership address. The dealership must be a complete, separate entity from any other business or residence on the property.

    49 Pa. Code § 19.18

  3. Build out the office, display area and sign

    Set up a private office with a desk, lockable file cabinet and a business landline listed in the dealership's name. Surface and mark off a display area for at least five vehicles, put up a permanent sign with the licensed name and post your hours. The facility must be ready for inspection before you submit the application.

    Inspection before approval

  4. Collect owner records, photos and a diagram

    Each owner, partner, officer or member needs a five-year work history and a state police criminal history check for every state lived or worked in during the past five years, dated within 180 days. Pennsylvania checks come from epatch.pa.gov. Take the required photos and draw a signed, dated site diagram on letter-size paper.

    PALS application checklist

  5. Apply for the vehicle dealer license in PALS

    Create a PALS account, choose the Vehicle Board and the Vehicle Dealer license, upload the documents and pay the $190 fee, which is not refundable. An inspector contacts the person in charge to schedule the visit. A failed inspection costs $45 to repeat. You cannot operate until the license is issued.

    pals.pa.gov · $190

  6. License each salesperson

    Salespeople apply in PALS for their own license. The fee is $70, each one uploads a criminal history check, and your dealership completes the Employer's Certification form. A salesperson must be employed by a licensed dealership to keep the license.

    Vehicle Salesperson · $70

  7. Register with PennDOT for a DIN and plates

    After the Board issues your license, send PennDOT Form MV-349 with the $20,000 bond on Form MV-375, an original Pennsylvania State Police record for each owner, photos, photo ID copies, proof of insurance and your deed or lease. PennDOT assigns the Dealer Identification Number and issues dealer plates.

    Forms MV-349 and MV-375

Practical advice

Keep two folders, one for the Board license and one for PennDOT registration, plates and title work, and do the Board first. Have the lot fully finished before you file, because the inspection is scheduled from the application and a repeat visit costs $45. Order criminal history checks last so they are still inside the 180-day window when you submit.

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

Pennsylvania dealer location requirements

What the state checks at the business address.

  • A permanent enclosed building you own or rent. An office trailer with skirting and a permanent foundation counts.
  • Separated from adjoining businesses and residences by partitions or walls, with its own business identity.
  • A private office, apart from display and repair areas, with space to store books and records.
  • A display area large enough for at least five vehicles with their doors open. Outdoor areas must be graded and surfaced.
  • A single business landline inside the building, listed under the dealership's licensed name.
  • A sign with the licensed name, fixed to the building or erected in the display area, plus posted business hours.
  • A certificate of occupancy, proof of proper zoning, and a deed or a lease of at least six months.

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 Pennsylvania dealer license

Renewal and ongoing duties

Renew the Board license every two years ($274 for a dealer, $141 for each salesperson). Tell the Board about changes: a new physical location costs $60 and a name or mailing address change costs $30. Renew PennDOT dealer plates every one or two years, and keep the PennDOT bond at the full required amount at all times.

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

Pennsylvania dealer license FAQ

The questions first-time dealers ask most.

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

Set up a location that meets the Board's facility rules, then apply online in PALS to the State Board of Vehicle Manufacturers, Dealers and Salespersons for a vehicle dealer license. The fee is $190 and the Board inspects the facility before approval. Once licensed, register with PennDOT using Form MV-349 to get a Dealer Identification Number and dealer plates.

How much is the dealer bond in Pennsylvania?

The Board's dealer license checklist does not list a bond. PennDOT requires a $20,000 bond for each place of business, filed on Form MV-375 with your dealer registration application. The original bond form must be submitted, and the bond must stay at the required amount at all times.

How much does a Pennsylvania dealer license cost?

The Board's dealer license application fee is $190 and is not refundable. Renewal is $274 every two years. Each salesperson license application is $70. A failed facility inspection adds a $45 re-inspection fee. PennDOT charges separately for dealer plates, and you pay a surety for the $20,000 bond.

Do I need a pre-licensing course in Pennsylvania?

The Board's application checklist for a vehicle dealer does not include a course or an exam. It asks for business registration documents, criminal history checks, a work history for each owner, zoning and occupancy documents, photos, a site diagram and a facility inspection.

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

No. A licensed dealer must keep an established place of business with a permanent enclosed building, a private office, a display area large enough for at least five vehicles with doors open, a business landline and a sign. The Board inspects the facility before it approves the application.

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

Fewer than five in one calendar year. The Board of Vehicles Act exempts a person who sells, exchanges or buys fewer than five vehicles in a calendar year, as long as that person paid sales tax when purchasing them. The Board's own guidance says people who sell more than 4 vehicles a year 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 PA Vehicle Board or your attorney before you sign a lease or pay a fee.

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