Getting a used car dealer license in North Dakota

In North Dakota, used-car dealers are licensed by North Dakota DOT Motor Vehicle Division.

Before your first retail sale you’ll need a $25,000 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

At a glance

License
Used motor vehicle dealer dot.nd.gov (source, opens in a new tab)
Issued by
North Dakota DOT Motor Vehicle Division dot.nd.gov (source, opens in a new tab)
Surety bond
$25,000 continuous bond. dot.nd.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
$100 annual license includes one plate; additional plate $20, maximum two initially. dot.nd.gov (source, opens in a new tab)
Renewal
Annual December31; $100 renewal, $100 late penalty. dot.nd.gov (source, opens in a new tab)
Site inspection
Yes: NDDOT inspection before issuance. dot.nd.gov (source, opens in a new tab)

Step by step

  1. Make sure you need a used dealer license

    North Dakota's DOT Motor Vehicle Division licenses used motor vehicle dealers. New and franchised dealers, and out-of-state dealers, are authorized differently. dot.nd.gov › motor-vehicle-dealer-resources-including-out-state-dealers (source, opens in a new tab)

  2. Find a site big enough

    The building and display area together must cover at least 2,500 sq ft, and the site needs zoning approval. A home can't be the qualifying building. dot.nd.gov › dealer-handbook.pdf (source, opens in a new tab) dot.nd.gov › motor-vehicle-dealer-resources-including-out-state-dealers (source, opens in a new tab)

  3. Set up the building

    You need an enclosed, permanent building of at least 250 sq ft, heated, lit and with a furnished office, plus a listed phone and your records on the premises. Tents and residences don't qualify. Put up a 32 sq ft sign with 10-inch letters, visible from the street. dot.nd.gov › dealer-handbook.pdf (source, opens in a new tab)

  4. Register the business, bond and insurance

    Register the business and get garage liability coverage and a $25,000 continuous bond (form SFN2933). You don't pay that amount: a surety company charges you a premium, a fraction of it, set mainly by your credit. dot.nd.gov › dealer-handbook.pdf (source, opens in a new tab) dot.nd.gov › forms.aspx (source, opens in a new tab)

  5. Apply

    Submit form SFN2932 with the bond. The license is $100 a year, including one plate; extra plates are $20, with a maximum of two at first. dot.nd.gov › motor-vehicle-dealer-resources-including-out-state-dealers (source, opens in a new tab) dot.nd.gov › dealer-handbook.pdf (source, opens in a new tab)

  6. Allow time for the inspection

    NDDOT inspects the site before issuing the license; allow 4–6 weeks. Submitting the application doesn't let you start selling. dot.nd.gov › motor-vehicle-dealer-resources-including-out-state-dealers (source, opens in a new tab) dot.nd.gov › dealer-handbook.pdf (source, opens in a new tab)

  7. Keep it current

    Licenses renew every year by December 31 for $100, with a $100 penalty if late. dot.nd.gov › dealer-handbook.pdf (source, opens in a new tab)

The location

Display lot
Building/display combination at least 2,500 sq ft. dot.nd.gov (source, opens in a new tab)
Office
Enclosed permanent building at least 250 sq ft, heated/lit, furnished office; no residence/tent. Listed telephone and records on premises. dot.nd.gov (source, opens in a new tab)
Sign
32 sq ft sign with 10-inch letters, visible from street. dot.nd.gov (source, opens in a new tab)
Zoning and home-based lots
Zoning approval; residence cannot be qualifying building. dot.nd.gov (source, opens in a new tab)

Before you apply

Garage liability coverage and business registration. dot.nd.gov (source, opens in a new tab)

Forms

SFN2932 Dealer License Application (directory revision April1,2026); SFN2933 bond (April2,2026). dot.nd.gov (source, opens in a new tab)

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

Not the license you’re after?

New/franchised dealer and out-of-state dealer authorizations differ. dot.nd.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: securing 2,500 sq ft and budgeting the inspection lead time.

Easy mistakes:

Questions

How much does a North Dakota dealer license cost?

$100 a year, including one plate. The bond premium, garage liability insurance and a 2,500 sq ft site cost more. dot.nd.gov › dealer-handbook.pdf (source, opens in a new tab)

How long does it take?

Allow 4–6 weeks for the inspection process before the license is issued. dot.nd.gov › motor-vehicle-dealer-resources-including-out-state-dealers (source, opens in a new tab)

Can I run a dealership from home in North Dakota?

No. A residence can't be the qualifying building. dot.nd.gov › dealer-handbook.pdf (source, opens in a new tab)

Sources

Not affiliated with the North Dakota DOT. Not legal advice. Requirements change; always confirm with the state.