Getting a used car dealer license in North Carolina

In North Carolina, used-car dealers are licensed by North Carolina State Highway Patrol, Investigative Services Unit Dealer Section.

Before your first retail sale you’ll need a $50,000 surety bond, a 12-hour pre-licensing course 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

At a glance

License
Motor vehicle dealer (used retail) ncshp.gov (source, opens in a new tab)
Issued by
North Carolina State Highway Patrol, Investigative Services Unit Dealer Section ncshp.gov (source, opens in a new tab)
Surety bond
$50,000 first location; $25,000 each additional location; surety or permitted cash bond. ncshp.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.
Pre-licensing course
12-hour pre-license course completed within prior 12 months. Wake Tech offers agency-approved training. ncshp.gov (source, opens in a new tab)
Official fees
Two-year license: $231 ($115.50/year). First five plates: $92.50 each per two-year term. Additional plates $46.26 each. County regional tax may add cost. ncshp.gov (source, opens in a new tab)
Renewal
Two-year licenses/plates; 6-hour CE annually with each year’s certificate. License $115.50/year. ncleg.gov (source, opens in a new tab)
Site inspection
Yes. ISU officer inspects before application submission. ncshp.gov (source, opens in a new tab)

Step by step

  1. Make sure you need a retail dealer license

    North Carolina's dealer licenses are issued by the State Highway Patrol's Investigative Services Unit (ISU). A wholesale office doesn't authorize retail sales, and manufacturers and sales representatives are licensed differently. ncshp.gov › investigative-services-unit (source, opens in a new tab) ncshp.gov › New Dealer Packet.pdf (source, opens in a new tab)

  2. Take the 12-hour pre-license course

    Complete the 12-hour course within the 12 months before you apply. Wake Tech offers agency-approved training. ncshp.gov › New Dealer Packet.pdf (source, opens in a new tab) waketech.edu › auto-dealers (source, opens in a new tab)

  3. Set up a location that qualifies

    You need a permanent, enclosed retail salesroom of at least 96 sq ft, a trade-name sign in contrasting block letters at least 3 inches high, and written proof of zoning compliance. Records are kept for five years. A wholesale office layout doesn't meet the retail rules. ncshp.gov › New Dealer Packet.pdf (source, opens in a new tab) ncleg.gov › SL2025-22.pdf (source, opens in a new tab)

  4. Get the premises inspected before you apply

    An ISU officer inspects the location before you submit the application. Arranging that first is the hardest part, and submitting before the inspection is a common mistake. ncshp.gov › New Dealer Packet.pdf (source, opens in a new tab) ncshp.gov › investigative-services-unit (source, opens in a new tab)

  5. Get the bond and insurance

    The bond is $50,000 for your first location ($25,000 for each additional one), as a surety bond or a permitted cash bond. You don't pay that amount: a surety company charges you a premium, a fraction of it, set mainly by your credit. Dealer plates also need garage or comprehensive insurance. ncshp.gov › New Dealer Packet.pdf (source, opens in a new tab)

  6. Put the packet together

    Use the current forms (Rev. 02/26): ISU 415 dealer requirements, ISU 400 application, ISU 409 surety bond and ISU 405 dealer plate application, notarized where required, with your entity or assumed-name documents and criminal history disclosures. ncshp.gov › New Dealer Packet.pdf (source, opens in a new tab) ncleg.gov › SL2025-22.pdf (source, opens in a new tab)

  7. Submit it with the fees

    The license runs two years and costs $231. The first five plates are $92.50 each for the two-year term, and additional plates are $46.26 each; county regional tax may add to that. ncshp.gov › New Dealer Packet.pdf (source, opens in a new tab)

  8. Keep it current

    Licenses and plates renew every two years, and you need 6 hours of continuing education every year, with each year's certificate. ncleg.gov › SL2025-22.pdf (source, opens in a new tab) ncshp.gov › New Dealer Packet.pdf (source, opens in a new tab)

The location

Office
Retail salesroom permanent/enclosed, ≥96 sq ft. Records retained five years. ncshp.gov (source, opens in a new tab)
Sign
Trade-name sign with contrasting block letters at least 3 inches high. ncshp.gov (source, opens in a new tab)
Zoning and home-based lots
Written zoning compliance required. ncshp.gov (source, opens in a new tab)

Before you apply

Entity/assumed-name documents, zoning, criminal disclosures and garage/comprehensive insurance for dealer plates. ncshp.gov (source, opens in a new tab)

Forms

ISU 415 dealer requirements; ISU 400 new dealer/change application; ISU 409 dealer surety bond; ISU 405 dealer plate application. Packet contains forms (Rev. 02/26). ncshp.gov (source, opens in a new tab)

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

Not the license you’re after?

Wholesale office does not authorize retail; manufacturer/distributor and sales-representative licenses differ. ncshp.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: arranging premises inspection before submitting the packet.

Easy mistakes:

Questions

How much does a North Carolina dealer license cost?

$231 for the two-year license, plus $92.50 per plate for the first five plates (county regional tax may apply). The bond premium, insurance, course and location cost more and vary. ncshp.gov › New Dealer Packet.pdf (source, opens in a new tab)

When is the location inspected?

Before you apply. An ISU officer inspects the premises before you submit the application. ncshp.gov › New Dealer Packet.pdf (source, opens in a new tab)

Do I need continuing education?

Yes: 6 hours every year. ncleg.gov › SL2025-22.pdf (source, opens in a new tab) ncshp.gov › New Dealer Packet.pdf (source, opens in a new tab)

Sources

Not affiliated with the North Carolina DMV. Not legal advice. Requirements change; always confirm with the state.