Getting a used car dealer license in Kentucky

In Kentucky, used-car dealers are licensed by Kentucky Motor Vehicle Commission.

Before your first retail sale you’ll need a $100,000 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

License
Used Motor Vehicle Dealer (includes wholesale) mvc.ky.gov (source, opens in a new tab)
Issued by
Kentucky Motor Vehicle Commission mvc.ky.gov (source, opens in a new tab)
Surety bond
Commission may require a bond, assets or reliable financial arrangements up to $100,000 after financial review; not an automatic fixed bond for every used applicant. mvc.ky.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
$175 processing + $25 per owner criminal check. mvc.ky.gov (source, opens in a new tab)

Step by step

  1. Make sure you need a used dealer license

    Kentucky's Motor Vehicle Commission issues the Used Motor Vehicle Dealer license, which includes wholesale. Wholesale-only, new and franchise, leasing, auction, recycling and mobility licenses differ, and owners also need salesperson licenses. mvc.ky.gov › Dealer-Requirements.aspx (source, opens in a new tab) mvc.ky.gov › Application-Information.aspx (source, opens in a new tab)

  2. Set up the lot and office

    You need at least 2,000 sq ft of hard-surfaced display and customer parking (gravel is fine if it's free of vegetation), with no through traffic or parking shared with another business. The office must be at least 100 sq ft on a permanent foundation next to the lot, with desk, chairs, files, phone, electricity, a computer and a fax. It must be a permanent commercial building that meets local zoning; a residence can't qualify. If other businesses are nearby, you need a separate address and mailbox. mvc.ky.gov › Dealer Requirements 2025.pdf (source, opens in a new tab)

  3. Install the sign before you apply

    A permanent sign with your exact business name, visible from the nearest roadway, in letters at least 9 inches high, must be up before you submit. mvc.ky.gov › Dealer Requirements 2025.pdf (source, opens in a new tab)

  4. Prepare the financial statement

    The Commission reviews a financial statement and may require a bond, assets or other reliable financial arrangements of up to $100,000; it isn't a fixed bond for every applicant. Errors here delay approval and can trigger a bond requirement or denial. mvc.ky.gov › Application-Information.aspx (source, opens in a new tab) mvc.ky.gov › Dealer Requirements 2025.pdf (source, opens in a new tab)

  5. Complete the application

    Fill in the 2026 version of form TC98-1, printed one-sided (two-sided applications are returned), with your ownership disclosure. Fees are $175 for processing plus $25 per owner, partner or officer for the criminal history check. mvc.ky.gov › Resources.aspx (source, opens in a new tab) mvc.ky.gov › Dealer Requirements 2025.pdf (source, opens in a new tab)

  6. File before the meeting cutoff

    The Commission decides at a monthly meeting, usually on the second Friday. Your completed packet is due at least ten working days before; that's a cutoff, not a promised approval time. mvc.ky.gov › Application-Information.aspx (source, opens in a new tab) mvc.ky.gov › Dealer Requirements 2025.pdf (source, opens in a new tab)

  7. After approval: fees and insurance

    Once the Commission approves you, pay the dealer and salesperson fees and provide garage liability insurance of $250,000 per person, $500,000 per occurrence and $250,000 property damage when it's requested. mvc.ky.gov › Application-Information.aspx (source, opens in a new tab) mvc.ky.gov › Dealer Requirements 2025.pdf (source, opens in a new tab)

The location

Display lot
At least 2,000 sq ft display/customer parking; hard surface (gravel accepted without vegetation), no through traffic or shared parking with another business. mvc.ky.gov (source, opens in a new tab)
Office
Office at least 100 sq ft, permanent foundation, adjacent to lot; desk/chairs/files, phone, electricity, computer and fax. mvc.ky.gov (source, opens in a new tab)
Sign
Permanent exact-name sign visible from nearest roadway, lettering at least 9 inches; installed before submitting application. mvc.ky.gov (source, opens in a new tab)
Zoning and home-based lots
Permanent commercial building compliant with local zoning/building rules; residence cannot qualify. Separate address and mail receptacle if other businesses nearby. mvc.ky.gov (source, opens in a new tab)

Before you apply

Financial statement; ownership disclosure; $25 criminal-history check per owner/partner/officer. Garage liability $250,000/person, $500,000/occurrence, $250,000 property, requested after Commission approval. mvc.ky.gov (source, opens in a new tab)

Forms

TC98-1 Dealer Application UPDATED 2026, linked on official Resources page. Print one-sided; two-sided applications returned. Dealer Requirements rev 03/2025. mvc.ky.gov (source, opens in a new tab)

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

Not the license you’re after?

Wholesale-only, new/franchise, leasing, auction, recycling and mobility licenses differ; owners also need salesperson licensing. mvc.ky.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: completing the location and financial packet in time for the monthly meeting cutoff.

Easy mistakes:

Questions

How much does a Kentucky dealer license cost?

$175 for processing and $25 per owner for the criminal history check, then dealer and salesperson fees after approval. The insurance and premises cost more, and the Commission may also require a bond. mvc.ky.gov › Application-Information.aspx (source, opens in a new tab) mvc.ky.gov › Dealer-Requirements.aspx (source, opens in a new tab)

Do I need a bond in Kentucky?

Not automatically. After reviewing your financial statement, the Commission may require a bond, assets or financial arrangements of up to $100,000. mvc.ky.gov › Dealer-Requirements.aspx (source, opens in a new tab)

When will I get a decision?

At the Commission's monthly meeting, usually the second Friday, if your completed packet arrived at least ten working days before. mvc.ky.gov › Application-Information.aspx (source, opens in a new tab)

Can I run a dealership from home in Kentucky?

No. It must be a permanent commercial building, and a residence can't qualify. mvc.ky.gov › Dealer Requirements 2025.pdf (source, opens in a new tab)

Sources

Not affiliated with the Kentucky Transportation Cabinet. Not legal advice. Requirements change; always confirm with the state.