How to Get a Dealer License in Kansas
In Kansas, dealer licensing runs through the Kansas Department of Revenue (KDOR), Division of Vehicles — Dealer Licensing Bureau. To get a used car dealer license in Kansas you'll need a registered business, a compliant location, a $50,000 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 Kansas auto dealer license requirements, real costs, and the exact steps — in plain English. Rules change, so verify everything against the Kansas Department of Revenue (KDOR), Division of Vehicles — Dealer Licensing Bureau's current pages before you file.
- Surety bond
- $50,000
- License term
- Annual — dealer licenses expire December 31 of the year granted; salesperson licenses expire June 30. Renew through the KDOR Dealer Licensing portal and keep the surety bond current.
- Sales threshold
- A license is required if you buy a vehicle intending to resell it for profit, or sell 5 or more vehicles in a calendar year. Operating without a license is a misdemeanor (fine up to $2,500).
- Pre-licensing
- None — Kansas does not require a pre-licensing education course or exam. Applicants must instead satisfy bond, premises, insurance, tax-clearance, credit-reference, and county-treasurer verification requirements.
License types in Kansas
| License type | What it covers |
|---|---|
| Used Vehicle Dealer | Buying and selling used vehicles at retail and wholesale from an established place of business. |
| New Vehicle Dealer | Selling new vehicles under a franchise; a dealer licensed as both new and used pays a single license fee for the combined license. |
| Wholesale Vehicle Dealer | Dealer-to-dealer sales only — no retail sales to the public. |
| Vehicle Salesperson | An individual employed by a licensed dealer to sell vehicles (a separate salesperson license). |
What it costs
| Item | Cost | Notes |
|---|---|---|
| Dealer license fee (new or used) | $75 / year | A single $75 fee covers a combined new-and-used license |
| Vehicle salesperson license | $25 / year | Separate license for each salesperson |
| Surety bond premium | Varies | Annual premium you pay is a fraction of the $50,000 face amount, based on credit — not a state fee |
| Dealer plates | Varies | Confirm current per-plate charge with KDOR before budgeting |
Step by step
- Establish a properly zoned, permanent place of business with a business-name sign, phone, and premises/inventory insurance, and register for Kansas retailers' sales tax.
- Obtain the $50,000 surety bond (Form D-20) from a Kansas-authorized surety, or post an equivalent cash/negotiable-bond deposit.
- Gather supporting documents: Kansas tax-clearance certificate, county-treasurer personal-property-tax certification, three credit references, entity documents, and photos of the location and signage.
- Complete the Original Application for Vehicle Dealer License (Form D-17A), verified by the county treasurer.
- Submit the application, bond, and $75 fee to the KDOR Dealer Licensing Bureau through the online portal.
- Pass KDOR review/inspection, receive your license and dealer plates, and use the online system to issue 60-day temp permits and process titles.
Premises & temp tags
Location: An established, permanent place of business in Kansas that is properly zoned for the type of vehicles you sell, with a permanent business-name sign, an operable telephone, and business/inventory insurance. Photos of the location and signage are submitted with the application. Home-based lots and curbstoning that do not meet the fixed-location, zoning, and signage tests do not qualify.
Temp tags / plates: Licensed dealers issue print-on-demand 60-day temporary permits through the KDOR online system (available 24/7), which replaced older paper dealer temporary tags. Ordering instructions are on Forms TR-205 / TR-205b.
Kansas-specific things to know
- Two different expiration dates: the dealer license expires December 31, but each salesperson license expires June 30 — it is easy to let a salesperson license lapse mid-year.
- County-treasurer sign-off is mandatory — the D-17A must be verified by the county treasurer confirming no delinquent personal-property taxes, a step outside KDOR that can delay filing.
- A combined new-and-used license costs a single $75 fee, but a wholesale-only dealer cannot sell retail to the public at all — choosing the wrong type restricts who you can sell to.
- The bond floor has been $50,000 since 2022; cash or negotiable U.S./Kansas bonds are an accepted alternative to a surety bond.
Official Kansas resources
- KDOR Division of Vehicles — Dealer Licensing ↗
- KDOR Vehicles Forms & Publications ↗
- K.S.A. 8-2404 — Dealer Bond, Fees & License Term ↗
Kansas dealer license FAQ
How much does a dealer license cost in Kansas?+
Dealer license fee (new or used): $75 / year; Vehicle salesperson license: $25 / year; Surety bond premium: Varies; Dealer plates: Varies. Plus the $50,000 surety bond (you pay a small annual premium on that, not the full amount).
How big is the dealer bond in Kansas?+
Kansas requires a $50,000 surety bond. Set by K.S.A. 8-2404; the $50,000 amount took effect Jan 1, 2022 (raised from $30,000). Must be a corporate surety bond issued by a company authorized in Kansas, or an equivalent deposit of cash or negotiable U.S./Kansas bonds. Filed on KDOR Form D-20. Older guides citing a $30,000 bond are outdated.
Do you need a physical lot to get a dealer license in Kansas?+
An established, permanent place of business in Kansas that is properly zoned for the type of vehicles you sell, with a permanent business-name sign, an operable telephone, and business/inventory insurance. Photos of the location and signage are submitted with the application. Home-based lots and curbstoning that do not meet the fixed-location, zoning, and signage tests do not qualify.
How many cars can you sell in Kansas without a dealer license?+
A license is required if you buy a vehicle intending to resell it for profit, or sell 5 or more vehicles in a calendar year. Operating without a license is a misdemeanor (fine up to $2,500).
How long is a Kansas dealer license valid?+
Annual — dealer licenses expire December 31 of the year granted; salesperson licenses expire June 30. Renew through the KDOR Dealer Licensing portal and keep the surety bond current.
Is dealer training or an exam required in Kansas?+
None — Kansas does not require a pre-licensing education course or exam. Applicants must instead satisfy bond, premises, insurance, tax-clearance, credit-reference, and county-treasurer verification requirements.
How do temporary tags work for Kansas dealers?+
Licensed dealers issue print-on-demand 60-day temporary permits through the KDOR online system (available 24/7), which replaced older paper dealer temporary tags. Ordering instructions are on Forms TR-205 / TR-205b.
Data verified 2026-07-17. Requirements change — confirm with the Kansas Department of Revenue (KDOR), Division of Vehicles — Dealer Licensing Bureau before filing.
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