Getting a used car dealer license in Minnesota

In Minnesota, used-car dealers are licensed by Minnesota DPS Driver and Vehicle Services Dealer Licensing.

Before your first retail sale you’ll need a $50,000 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 dps.mn.gov (source, opens in a new tab)
Issued by
Minnesota DPS Driver and Vehicle Services Dealer Licensing dps.mn.gov (source, opens in a new tab)
Surety bond
$50,000 in DVS dealer application. assets.dps.mn.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
State license directory: initial $250; plates first four $86 each, fifth onward $51 each. mn.gov (source, opens in a new tab)
Renewal
One year from issuance month; renewal $150, late $100 per state directory. mn.gov (source, opens in a new tab)

Step by step

  1. Make sure you need a used dealer license

    Minnesota's DPS Driver and Vehicle Services (DVS) licenses used motor vehicle dealers. The used retail license also covers used wholesale, brokerage and auction activity; buying junked vehicles from salvage pools needs extra parts or scrap authority. dps.mn.gov › used-motor-vehicle-dealer-licensing-overview (source, opens in a new tab)

  2. Find a commercial location that will pass review

    You need a designated display lot at a commercial location and a permanent, enclosed commercial building on a permanent foundation that meets sanitation rules. Agricultural or industrial sites may need a special-use permit. Get this right: a denied applicant may have to wait a year to reapply. mn.gov › a-z (source, opens in a new tab) assets.dps.mn.gov › dvs-motor-vehicle-dealer-guide.pdf (source, opens in a new tab)

  3. Fill in the location checklist accurately

    Complete the Commercial Location Checklist (PS2410) and zoning form (PS2421), with your lease verification (PS2407) or ownership proof. DVS flags inaccurate checklists. Photos of the exterior sign are encouraged. assets.dps.mn.gov › DealerLicenseApplication.pdf (source, opens in a new tab) assets.dps.mn.gov › dvs-motor-vehicle-dealer-guide.pdf (source, opens in a new tab)

  4. Register the business, bond and insurance

    Register the entity or assumed name and gather owner ID. Get the $50,000 bond (PS2446) and liability insurance, plus workers' compensation (PS2420) if you have employees. Keep the bond and insurance continuous: a lapsed bond cancels the license and means reapplying. You don't pay that amount: a surety company charges you a premium, a fraction of it, set mainly by your credit. assets.dps.mn.gov › DealerLicenseApplication.pdf (source, opens in a new tab) assets.dps.mn.gov › dvs-motor-vehicle-dealer-guide.pdf (source, opens in a new tab)

  5. Apply

    Submit the dealer license application with ID and fees: $250 for the initial license, and $86 each for the first four plates (PS2405), then $51 each. assets.dps.mn.gov › DealerLicenseApplication.pdf (source, opens in a new tab) mn.gov › a-z (source, opens in a new tab)

  6. DVS review

    The state license directory lists 3–5 days for a decision. assets.dps.mn.gov › DealerLicenseApplication.pdf (source, opens in a new tab) mn.gov › a-z (source, opens in a new tab)

  7. Keep records and renew

    Keep records for three years (odometer statements five) where they can be inspected. The license runs a year from the month it's issued; renewal is $150, with a $100 late fee. mn.gov › a-z (source, opens in a new tab) assets.dps.mn.gov › dvs-motor-vehicle-dealer-guide.pdf (source, opens in a new tab)

The location

Display lot
Designated display lot at commercial location. mn.gov (source, opens in a new tab)
Office
Permanent enclosed commercial building on permanent foundation, sanitation compliance; records generally three years (odometer statements five) and accessible for inspection. mn.gov (source, opens in a new tab)
Sign
Exterior sign photos encouraged. mn.gov (source, opens in a new tab)
Zoning and home-based lots
Commercial location and zoning compliance; agricultural/industrial sites may need special-use permit. mn.gov (source, opens in a new tab)

Before you apply

Entity/assumed-name registration, owner identification, liability insurance and workers compensation where employees; commercial-location checklist, zoning and lease/ownership evidence. assets.dps.mn.gov (source, opens in a new tab)

Forms

Dealer License Application; PS2410 Commercial Location Checklist; PS2421 Zoning; PS2420 Workers Compensation; PS2446 Surety Bond; PS2405 Demonstration/In-Transit Plates; PS2407 lease verification, referenced in agency application. assets.dps.mn.gov (source, opens in a new tab)

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

Not the license you’re after?

Used retail license also permits used wholesale, brokerage and auction activity; acquiring junked vehicles from salvage pools requires additional parts/scrap authority. dps.mn.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: passing commercial-location review; state directory warns denied applicants may have to wait one year to reapply.

Easy mistakes:

Questions

How much does a Minnesota dealer license cost?

$250 for the initial license, plus $86 for each of the first four plates. The bond premium, insurance and a commercial location cost more. mn.gov › a-z (source, opens in a new tab) assets.dps.mn.gov › DealerLicenseApplication.pdf (source, opens in a new tab)

Can I run a dealership from home in Minnesota?

No. You need a commercial location with a permanent, enclosed commercial building. mn.gov › a-z (source, opens in a new tab) assets.dps.mn.gov › dvs-motor-vehicle-dealer-guide.pdf (source, opens in a new tab)

How long does it take?

The state license directory lists 3–5 days for a decision. mn.gov › a-z (source, opens in a new tab)

Sources

Not affiliated with the Minnesota DVS. Not legal advice. Requirements change; always confirm with the state.