Getting a used car dealer license in Pennsylvania

In Pennsylvania, used-car dealers are licensed by Department of State, Board of Vehicle Manufacturers, Dealers and Salespersons.

Before your first retail sale you’ll need a $20,000 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 · details re-checked against official sources

At a glance

License
Vehicle dealer license; then PennDOT dealer identification/plates pa.gov (source, opens in a new tab)
Issued by
Department of State, Board of Vehicle Manufacturers, Dealers and Salespersons pa.gov (source, opens in a new tab)
Surety bond
$20,000 manufacturer/dealer bond per place of business. Full-agent bond is a different category. pa.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
Board initial dealer application $190; dealer registration plate $70. pa.gov (source, opens in a new tab)
Renewal
Biennial; current period June 1, 2025–May 31, 2027; dealer renewal $274. pa.gov (source, opens in a new tab)

Step by step

  1. Know that there are two approvals

    In Pennsylvania you need a vehicle dealer license from the State Board of Vehicle Manufacturers, Dealers and Salespersons (Department of State), and then dealer identification and plates from PennDOT. Coordinating the two is the hard part. Salesperson licenses and PennDOT agent authority are separate again. pa.gov › become-a-vehicle-dealer (source, opens in a new tab) pa.gov › pub_459.pdf (source, opens in a new tab)

  2. Set up the business

    Prepare your business or entity documents, and get a State Police criminal history check (SP 4-164) for every owner, partner and officer. pa.gov › pub_459.pdf (source, opens in a new tab) pa.gov › mv-349.pdf (source, opens in a new tab)

  3. Find a building and office that qualify

    You need a permanent enclosed building you own or rent; an office trailer with skirting on a permanent foundation qualifies. Inside, a private office separate from the display and service areas with room for your books and records, and a business phone line listed under the dealership's licensed name. Post your regular business hours. pacodeandbulletin.gov › s19.18.html (source, opens in a new tab)

  4. Set up the display area and sign

    The display area must be open to the public and big enough for at least five vehicles with their doors open, separated from neighbouring businesses' parking and from homes by grass strips, ropes and pennants, painted lines or similar. Put up a sign with the dealership's licensed name, fixed to the building or in the display area. pacodeandbulletin.gov › s19.18.html (source, opens in a new tab) pa.gov › mv-375.pdf (source, opens in a new tab)

  5. Check zoning and occupancy

    The site must comply with building codes, zoning and other land-use ordinances, and you need a certificate of occupancy. pacodeandbulletin.gov › s19.18.html (source, opens in a new tab)

  6. Apply to the Board

    Apply through the Board's licensing system. The initial dealer application is $190. pa.gov › become-a-vehicle-dealer (source, opens in a new tab) pa.gov › pub_459.pdf (source, opens in a new tab)

  7. Then register with PennDOT

    Only after the Board licenses you, apply to PennDOT for your dealer identification and plates on form MV-349, with the $20,000 dealer bond on form MV-375. A dealer registration plate is $70. The dealer bond isn't the full-agent bond, so don't mix them up. You don't pay that amount: a surety company charges you a premium, a fraction of it, set mainly by your credit. pa.gov › become-a-vehicle-dealer (source, opens in a new tab) pa.gov › pub_459.pdf (source, opens in a new tab)

  8. Add agent authority only if you need it

    Full-agent or card-agent authority is a separate PennDOT application with its own bond category; a dealer license alone doesn't include it. pa.gov › become-a-vehicle-dealer (source, opens in a new tab) pa.gov › pub_459.pdf (source, opens in a new tab)

  9. Keep it current

    Licenses renew every two years; the current period runs June 1, 2025 to May 31, 2027, and dealer renewal is $274. pa.gov › renewal-information (source, opens in a new tab)

The location

Display lot
A display area open to the public, big enough for at least five vehicles with their doors open, separated from neighbouring businesses' parking and from residences by grass strips, ropes and pennants, painted lines or similar. pacodeandbulletin.gov (source, opens in a new tab)
Office
A permanent enclosed building you own or rent (an office trailer with skirting on a permanent foundation qualifies), with a private office separate from display and service areas and room for books and records. A business phone line inside the building, listed under the dealership's licensed name. Regular business hours posted for the public. pacodeandbulletin.gov (source, opens in a new tab)
Sign
A sign showing the dealership's licensed name, either permanently fixed to the building or put up in the outdoor display area. pacodeandbulletin.gov (source, opens in a new tab)
Zoning and home-based lots
The site must comply with building codes, zoning and other land-use ordinances, and the dealership must hold a certificate of occupancy. pacodeandbulletin.gov (source, opens in a new tab)

Before you apply

Business/entity documents and State Police SP 4-164 checks for owners/partners/officers. pa.gov (source, opens in a new tab)

Forms

Board dealer application through licensing system; MV-349 dealer registration/plates; MV-375 Manufacturer/Dealer/Full Agent/Card Agent/Messenger Service/Salvor Bond; SP 4-164 criminal history. pa.gov (source, opens in a new tab)

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

Not the license you’re after?

Salesperson license and PennDOT full-agent/card-agent authority are separate; a dealer license alone is not an agent-service contract. pa.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: coordinating board licensing with separate PennDOT registration and any agent authority.

Easy mistakes:

Questions

How much does a Pennsylvania dealer license cost?

The Board's initial dealer application is $190 and a PennDOT dealer plate is $70. You also pay a premium on the $20,000 bond and the costs of the location, which vary too much to quote. pa.gov › renewal-information (source, opens in a new tab) pa.gov › payments-and-fees (source, opens in a new tab)

Why are there two applications?

The State Board licenses you as a dealer; PennDOT then issues your dealer identification and plates. Apply to PennDOT only after the Board has licensed you. pa.gov › become-a-vehicle-dealer (source, opens in a new tab) pa.gov › pub_459.pdf (source, opens in a new tab)

How big does the lot have to be?

Big enough to display at least five vehicles with their doors open. pacodeandbulletin.gov › s19.18.html (source, opens in a new tab)

Sources

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