How to Get a Dealer License in Iowa
In Iowa, dealer licensing runs through the Iowa Department of Transportation (Iowa DOT), Motor Vehicle Division — Office of Vehicle & Motor Carrier Services. To get a used car dealer license in Iowa you'll need a registered business, a compliant location, a $75,000 surety bond, and the fees below. Whether you're opening a car lot, going wholesale-only, or starting a buy-here-pay-here operation, this guide walks the Iowa auto dealer license requirements, real costs, and the exact steps — in plain English. Rules change, so verify everything against the Iowa Department of Transportation (Iowa DOT), Motor Vehicle Division — Office of Vehicle & Motor Carrier Services's current pages before you file.
- Surety bond
- $75,000
- License term
- Two-year term — licenses expire at the end of even-numbered years and renew biennially. A licensee has the month of expiration plus the following month to renew before dealer privileges lapse; used dealers must also complete the 5-hour continuing education.
- Sales threshold
- Selling more than six (6) motor vehicles in any 12-month period presumes you are engaged in the business and must be licensed — but the presumption is not a safe harbor; being 'engaged in the business' can be found on other facts.
- Pre-licensing
- Required for used-vehicle dealers — an 8-hour Auto Dealer Pre-Licensing Education Class administered by the Iowa Independent Automobile Dealers Association (IIADA) under Iowa Code 322.7A, completed BEFORE the application is filed. Renewal requires at least 5 hours of continuing education over the two-year period.
License types in Iowa
| License type | What it covers |
|---|---|
| Motor Vehicle Dealer's License | Selling new and/or used motor vehicles — cars, trucks, and motorcycles. Used-vehicle sellers fall here; new-vehicle dealers additionally need franchise documentation. |
| Towable Recreational Vehicle Dealer's License | Selling towable RVs and travel trailers under Iowa Code Chapter 322C. |
| Recycler / Used Parts Dealer License | Selling used parts, dismantling, or rebuilding salvage — does not authorize retail vehicle sales, which need a separate dealer license. |
| Extension Lot License | An additional sales location operated under an existing dealer license. |
What it costs
| Item | Cost | Notes |
|---|---|---|
| Dealer license fee | $70 | Base motor-vehicle dealer license (two-year term) |
| License registration fee (dealer plates) | $70 | Required only if you intend to use dealer plates |
| Extension lot license | $20 | Per additional lot |
| Surety bond premium | Varies | Annual premium you pay is a fraction of the $75,000 face amount, based on credit — not a state fee |
Step by step
- Complete the 8-hour IIADA pre-licensing education class (used-vehicle applicants) before applying.
- Secure a $75,000 surety bond and the required $100k/$300k liability coverage.
- Establish a compliant place of business and obtain a zoning-compliance letter.
- Complete the Application for Motor Vehicle or Towable Recreational Vehicle Dealer License (Form 417008) and pay the fees.
- Schedule and pass the on-site facility inspection with the Bureau of Investigation & Identity Protection.
- Receive the license; if using dealer plates, pay the license registration fee, order plates, and set up an ARTS account for temp tags and ERT.
Premises & temp tags
Location: A properly zoned place of business with a zoning-compliance letter, a permanent office and working landline open at least 32 hours per week (Mon–Fri), a display facility (minimum 18 ft x 30 ft for standard vehicles), and a repair facility (minimum 14 ft x 24 ft inside). Applicants must carry garage/financial-liability coverage of at least $100,000 per person / $300,000 per accident and pass a pre-license on-site inspection by the Iowa DOT Bureau of Investigation & Identity Protection.
Temp tags / plates: Iowa uses 'Registration Applied For' cards (temp tags), valid up to 45 days after delivery, issued through an Iowa DOT ARTS account and the Electronic Registration and Titling (ERT) program. As of Jan 1, 2026, these cards must be printed on stock provided by the Iowa DOT (ordered through vendor SICPA) and are locked to a single dealer license number.
Iowa-specific things to know
- Education must precede the application — the 8-hour IIADA class is a pre-application prerequisite for used dealers, and filing the application first is a common misstep.
- The 'six-vehicle' line is a presumption, not a safe harbor — selling more than six in 12 months triggers the requirement, but a dealer can be found 'engaged in the business' on other facts.
- As of Jan 1, 2026, dealers can no longer print 'Registration Applied For' cards on their own paper — they must order DOT-issued stock through SICPA, and stock is locked to one dealer license number (no sharing between sister stores).
- Using dealer plates requires a separate $70 license registration fee on top of the base $70 license fee — the base license alone does not grant plate privileges.
Official Iowa resources
- Iowa DOT — For Dealerships ↗
- Iowa DOT — Get a Motor Vehicle Dealer's License ↗
- Iowa Code Chapter 322 (Motor Vehicle Dealers) ↗
Iowa dealer license FAQ
How much does a dealer license cost in Iowa?+
Dealer license fee: $70; License registration fee (dealer plates): $70; Extension lot license: $20; Surety bond premium: Varies. Plus the $75,000 surety bond (you pay a small annual premium on that, not the full amount).
How big is the dealer bond in Iowa?+
Iowa requires a $75,000 surety bond. A continuous surety bond filed with the Iowa DOT before licensing, obtained through an insurance agent or an Iowa-licensed bonding company.
Do you need a physical lot to get a dealer license in Iowa?+
A properly zoned place of business with a zoning-compliance letter, a permanent office and working landline open at least 32 hours per week (Mon–Fri), a display facility (minimum 18 ft x 30 ft for standard vehicles), and a repair facility (minimum 14 ft x 24 ft inside). Applicants must carry garage/financial-liability coverage of at least $100,000 per person / $300,000 per accident and pass a pre-license on-site inspection by the Iowa DOT Bureau of Investigation & Identity Protection.
How many cars can you sell in Iowa without a dealer license?+
Selling more than six (6) motor vehicles in any 12-month period presumes you are engaged in the business and must be licensed — but the presumption is not a safe harbor; being 'engaged in the business' can be found on other facts.
How long is a Iowa dealer license valid?+
Two-year term — licenses expire at the end of even-numbered years and renew biennially. A licensee has the month of expiration plus the following month to renew before dealer privileges lapse; used dealers must also complete the 5-hour continuing education.
Is dealer training or an exam required in Iowa?+
Required for used-vehicle dealers — an 8-hour Auto Dealer Pre-Licensing Education Class administered by the Iowa Independent Automobile Dealers Association (IIADA) under Iowa Code 322.7A, completed BEFORE the application is filed. Renewal requires at least 5 hours of continuing education over the two-year period.
How do temporary tags work for Iowa dealers?+
Iowa uses 'Registration Applied For' cards (temp tags), valid up to 45 days after delivery, issued through an Iowa DOT ARTS account and the Electronic Registration and Titling (ERT) program. As of Jan 1, 2026, these cards must be printed on stock provided by the Iowa DOT (ordered through vendor SICPA) and are locked to a single dealer license number.
Data verified 2026-07-17. Requirements change — confirm with the Iowa Department of Transportation (Iowa DOT), Motor Vehicle Division — Office of Vehicle & Motor Carrier Services before filing.
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