Getting a used car dealer license in Kansas

In Kansas, used-car dealers are licensed by Kansas Department of Revenue, Division of Vehicles, Dealer Licensing.

Before your first retail sale you’ll need a $30,000, surety bond and a business location that meets the state’s rules.

This page gathers what a new independent lot needs, each fact linked to the official source it came from.

Sources checked

At a glance

Issued by
Kansas Department of Revenue, Division of Vehicles, Dealer Licensing ksrevenue.gov (source, opens in a new tab)
Surety bond
Agency handbook lists $30,000, form D20. ksrevenue.gov (source, opens in a new tab) That’s the bond’s face amount, not what you pay: a surety company charges a yearly premium, usually a small percentage of it, set mainly by your credit.
Official fees
Older agency handbook: used license $75/year and repeat inspection $30. ksrevenue.gov (source, opens in a new tab)
Renewal
Older handbook: annual Dec 31 expiration, $75 license fee. ksrevenue.gov (source, opens in a new tab)
Site inspection
Handbook provides for initial Division inspection; additional inspection after failed site review listed at $30. ksrevenue.gov (source, opens in a new tab)

Step by step

  1. Make sure you need a used dealer license

    The Kansas Department of Revenue's Division of Vehicles licenses used vehicle dealers. Wholesale, salvage, auction, manufacturer and salesperson licenses are separate. ksrevenue.gov › dovdealer.html (source, opens in a new tab) ksrevenue.gov › dlrhb-complete.pdf (source, opens in a new tab)

  2. Register the business and sales tax

    Set up the entity and register for sales tax under exactly the same business name you'll use everywhere else. ksrevenue.gov › dovdealer.html (source, opens in a new tab) ksrevenue.gov › dlrhb-complete.pdf (source, opens in a new tab)

  3. Get your tax clearances

    You need a state tax clearance for the owners and the business, and a county personal-property tax clearance. Secretary of State good standing isn't a tax clearance, and the county clearance is the one people miss. Gather three credit references if they apply to you. ksrevenue.gov › dovdealer.html (source, opens in a new tab) ksrevenue.gov › dlrhb-complete.pdf (source, opens in a new tab)

  4. Set up the premises

    You need an owned or leased lot separate from your home, an office that can receive mail, and an operable phone listed for the business. Get zoning certification from the county or city for vehicle sales, and put up a sign with the business name. ksrevenue.gov › dlrhb-complete.pdf (source, opens in a new tab) ksrevenue.gov › dovdealer.html (source, opens in a new tab)

  5. Insurance, bond and photos

    Get business and inventory insurance and the bond: the Division's handbook lists $30,000, on form D20. Take photos of the storefront and sign. You don't pay that amount: a surety company charges you a premium, a fraction of it, set mainly by your credit. ksrevenue.gov › dovdealer.html (source, opens in a new tab) ksrevenue.gov › dlrhb-complete.pdf (source, opens in a new tab)

  6. Apply and pass the inspection

    Submit the dealer application and fees for review; the Division inspects the site. Its older handbook lists the license at $75 a year, and a repeat inspection after a failed site review at $30. ksrevenue.gov › dovdealer.html (source, opens in a new tab) ksrevenue.gov › dlrhb-complete.pdf (source, opens in a new tab)

  7. Use the dealer portal

    Once licensed, you handle dealer transactions through the online dealer portal. The Division's older handbook lists annual renewal by December 31 for $75. ksrevenue.gov › dovdealer.html (source, opens in a new tab) ksrevenue.gov › dlrhb-complete.pdf (source, opens in a new tab)

The location

Display lot
Established owned/leased lot separate from residence. ksrevenue.gov (source, opens in a new tab)
Office
Sufficient office, mail reception and operable business-listed telephone. ksrevenue.gov (source, opens in a new tab)
Sign
Business-name sign and storefront/sign photos required. ksrevenue.gov (source, opens in a new tab)
Zoning and home-based lots
County/city zoning certification specific to vehicle activity; location separate from residence. ksrevenue.gov (source, opens in a new tab)

Before you apply

Sales-tax registration matching business name, state tax clearance for owners/business, county personal-property tax clearance, entity articles and three credit references as applicable; business/inventory insurance. ksrevenue.gov (source, opens in a new tab)

Forms

D20 bond; application and current supporting forms through dealer portal. ksrevenue.gov (source, opens in a new tab)

Get the current versions from ksrevenue.gov; we don’t host copies.

Not the license you’re after?

Wholesale, salvage, auction, manufacturer and salesperson licenses differ. ksrevenue.gov (source, opens in a new tab)

What trips people up

Our read of the requirements above, not official guidance or statistics.

The hardest part: satisfying both state tax clearance and county personal-property tax clearance.

Easy mistakes:

Questions

How much does a Kansas dealer license cost?

The Division's older handbook lists $75 a year, plus $30 for any repeat inspection. The bond premium, insurance and premises cost more. ksrevenue.gov › dlrhb-complete.pdf (source, opens in a new tab)

What tax clearances do I need?

A state tax clearance for the owners and the business, and a county personal-property tax clearance. ksrevenue.gov › dovdealer.html (source, opens in a new tab) ksrevenue.gov › dlrhb-complete.pdf (source, opens in a new tab)

Can I run a dealership from home in Kansas?

No. The lot and business must be separate from your residence. ksrevenue.gov › dlrhb-complete.pdf (source, opens in a new tab)

Sources

Not affiliated with the Kansas Division of Vehicles. Not legal advice. Requirements change; always confirm with the state.