Getting a used car dealer license in Montana

In Montana, used-car dealers are licensed by Montana DOJ MVD Vehicle Services Bureau.

Before your first retail sale you’ll need a $50,000 surety bond and a business location that meets the state’s rules. The state also inspects the location.

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

Sources checked · details re-checked against official sources

At a glance

License
Used motor vehicle dealer mvdmt.gov (source, opens in a new tab)
Issued by
Montana DOJ MVD Vehicle Services Bureau mvdmt.gov (source, opens in a new tab)
Surety bond
$50,000 continuous bond for used motor vehicles. mvdmt.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
Dealer license $30; each set of numbered dealer plates $25 a year. The Bureau works out your total after reviewing the application. mca.legmt.gov (source, opens in a new tab)
Renewal
You renew every year in your assigned quarter by filing an annual report with a $30 filing fee. A used dealer who doesn't meet the minimum sales requirement pays $25 more. mca.legmt.gov (source, opens in a new tab)
Site inspection
Yes: Highway Patrol, local law enforcement or DOJ Compliance Specialist, using MV105. mvdmt.gov (source, opens in a new tab)

Step by step

  1. Make sure you need a used dealer license

    Montana's MVD Vehicle Services Bureau, part of the Department of Justice, licenses used motor vehicle dealers. Motorcycle, quadricycle and boat dealers have different bond amounts. mvdmt.gov › MV22-General-Information-and-Requirements-for-Application-for-a-Motor-Vehicle-Dealer-License.pdf (source, opens in a new tab)

  2. Set up the premises

    You need nonresidential premises with a display lot, and a permanent office for your records with a listed phone (or a posted cell number), a computer, printer and internet, and posted customary hours. Get written local zoning approval. The sign must show your business and the type of vehicles, in 6-inch letters readable from 150 feet. mvdmt.gov › MV22-General-Information-and-Requirements-for-Application-for-a-Motor-Vehicle-Dealer-License.pdf (source, opens in a new tab)

  3. Phase I: qualification review

    Submit the Dealer Application (MV25), with the MV22 instructions. The Bureau reviews whether you qualify and works out the fees; the license itself is $30. mvdmt.gov › MV22-General-Information-and-Requirements-for-Application-for-a-Motor-Vehicle-Dealer-License.pdf (source, opens in a new tab) mvdmt.gov › dealer-forms (source, opens in a new tab)

  4. Phase II: inspection, bond and insurance

    Next, the site is inspected by the Highway Patrol, local law enforcement or a DOJ compliance specialist on form MV105. Provide the $50,000 continuous bond, a liability policy of at least one year covering dealer and demo-plate vehicles, the zoning evidence and the fees. You don't pay that amount: a surety company charges you a premium, a fraction of it, set mainly by your credit. mvdmt.gov › MV22-General-Information-and-Requirements-for-Application-for-a-Motor-Vehicle-Dealer-License.pdf (source, opens in a new tab) mvdmt.gov › dealer-forms (source, opens in a new tab)

  5. Allow time for plates

    The Bureau says the application review takes about three weeks, and plates take another 3–4 weeks after the license. Each set of dealer plates is $25 a year. mvdmt.gov › MV22-General-Information-and-Requirements-for-Application-for-a-Motor-Vehicle-Dealer-License.pdf (source, opens in a new tab) mca.legmt.gov › 0610-0040-0010-0010.html (source, opens in a new tab)

  6. Keep it current

    Renew every year in your assigned quarter by filing an annual report with a $30 fee; a used dealer who doesn't meet the minimum sales requirement pays $25 more. mca.legmt.gov › 0610-0040-0010-0240.html (source, opens in a new tab) mvdmt.gov › MV22-General-Information-and-Requirements-for-Application-for-a-Motor-Vehicle-Dealer-License.pdf (source, opens in a new tab)

The location

Display lot
Nonresidential premises with display lot. mvdmt.gov (source, opens in a new tab)
Office
Permanent office/records; listed phone or posted cellphone; computer, printer, internet and posted customary hours. mvdmt.gov (source, opens in a new tab)
Sign
Business/vehicle-type sign; 6-inch letters, readable 150 feet. mvdmt.gov (source, opens in a new tab)
Zoning and home-based lots
Written local zoning approval; nonresidential building. mvdmt.gov (source, opens in a new tab)

Before you apply

Liability policy for at least one year covering dealer/demo-plate vehicles. mvdmt.gov (source, opens in a new tab)

Forms

MV25 Dealer Application; MV105 inspection; MV22 instructions. Forms directory linked. mvdmt.gov (source, opens in a new tab)

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

Not the license you’re after?

Motorcycle/quadricycle and boat categories have different bond amounts. mvdmt.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: allowing for both staged approval and later plate delivery.

Easy mistakes:

Questions

How much does a Montana dealer license cost?

$30 for the license and $25 a year for each set of dealer plates; the Bureau confirms your total after review. The bond premium and insurance cost more. mca.legmt.gov › 0610-0040-0010-0010.html (source, opens in a new tab) mca.legmt.gov › 0610-0040-0010-0020.html (source, opens in a new tab)

How long does it take?

About three weeks for the application review, then another 3–4 weeks for plates after the license is issued. mvdmt.gov › MV22-General-Information-and-Requirements-for-Application-for-a-Motor-Vehicle-Dealer-License.pdf (source, opens in a new tab)

Can I run a dealership from home in Montana?

No. The premises and building must be nonresidential. mvdmt.gov › MV22-General-Information-and-Requirements-for-Application-for-a-Motor-Vehicle-Dealer-License.pdf (source, opens in a new tab)

Sources

Not affiliated with the Montana MVD. Not legal advice. Requirements change; always confirm with the state.