How to Get a Dealer License in Minnesota
In Minnesota, dealer licensing runs through the Minnesota Driver and Vehicle Services (DVS), Department of Public Safety. To get a used car dealer license in Minnesota 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 Minnesota auto dealer license requirements, real costs, and the exact steps — in plain English. Rules change, so verify everything against the Minnesota Driver and Vehicle Services (DVS), Department of Public Safety's current pages before you file.
- Surety bond
- $50,000
- License term
- One-year license term starting the month it is issued; renew annually with DVS. Renewals started more than 60 days after expiration require a new background check.
- Sales threshold
- Generally more than 5 vehicles sold in a 12-month period requires a dealer license under Minn. Stat. 168.27 — verify against your exact activity.
- Pre-licensing
- Minnesota does not mandate a general pre-licensing dealer-education course. Instead, every owner, officer, board member, and 5%-or-greater shareholder must clear a Bureau of Criminal Apprehension (BCA) background check before a license is issued. New-vehicle dealers that sell EVs must keep at least one employee certified through a Minnesota dealer-association EV training course (Minn. Stat. 168.27, subd. 2a).
License types in Minnesota
| License type | What it covers |
|---|---|
| Used Motor Vehicle Dealer | Sell, lease, broker, wholesale, or auction used motor vehicles at retail to consumers or for resale to dealers — the standard license for an independent used-car lot. |
| New Motor Vehicle Dealer | Franchised new-vehicle sales (plus used) under a manufacturer franchise — a separate class on top of the general dealer requirements. |
| Motor Vehicle Wholesaler | Sell vehicles at wholesale for resale to licensed dealers only — no retail sales to the public are allowed. |
| Motor Vehicle Broker | Arrange a sale between a buyer and seller (or a lease between lessee and lessor) for a fee, without taking the vehicle into inventory. |
| Dealer of Motorized Bicycle, Boat & Snowmobile Trailers (DSB) | Limited class for mopeds, boat trailers, and snowmobile trailers, with lighter fees and a smaller bond. |
What it costs
| Item | Cost | Notes |
|---|---|---|
| Dealer license fee (all types except DSB) | $250 | Initial application; one-year license term |
| Dealer license renewal (except DSB) | $150 | $100 late fee if renewed after expiration |
| DSB (moped/boat/snowmobile-trailer) dealer license | $10 | Discounted class fee |
| Surety bond (face amount) | $50,000 | $5,000 for DSB / small-trailer dealers; you pay only the annual premium |
| Dealer plates | $86 each (first 4), $51 each (5+) | DSB, in-transit, and moped plates are $16 each |
| BCA background check | $32 by mail / $42 in person | Required for every owner, officer, board member, and 5%+ shareholder |
| Local zoning, commercial lease/building, liability insurance | Varies | City/county business filings and an established place of business |
Step by step
- Form and register your business entity, and secure a commercial location that meets local zoning and DVS established-place-of-business rules (office, sign, display area, hours).
- Obtain the $50,000 surety bond ($5,000 for DSB / small-trailer dealers) and liability insurance.
- Complete the BCA background check and consent form for every owner, officer, board member, and 5%+ shareholder.
- Complete the DVS dealer license application for your license class (used, new, wholesaler, broker, or DSB).
- Submit the application with the $250 fee (or $10 for DSB) and pass any required site inspection.
- Once licensed, order dealer plates and set up DVS access to report sales and issue 60-day temporary permits.
Premises & temp tags
Location: An established place of business is required — a commercial (not residential) building that meets local zoning, with an office, a display area for inventory, a permanent business sign, and posted hours. Home-based lots generally do not qualify.
Temp tags / plates: Dealers issue a temporary permit — valid 60 days from the date of sale under Minn. Stat. 168.091–168.092 — so the buyer can operate the vehicle while title and registration are processed. Permits are completed and reported through DVS in the format the commissioner prescribes.
Minnesota-specific things to know
- A wholesaler license is cheaper to run but is dealer-to-dealer only — a single retail sale to the public is a violation. Use a used-dealer license if you want to sell retail.
- The application is not considered complete until DVS receives the BCA background-check results, so start fingerprinting early to avoid delays.
- Minnesota's buyer temporary permit is 60 days (not the shorter windows some states use), and it is completed and reported through DVS rather than printed as a loose paper tag.
- Licenses run one year from the issue month, not a fixed calendar date — track your own renewal window and renew within 60 days of expiration to avoid a second background check and the $100 late fee.
Official Minnesota resources
- Minnesota DVS — Dealers ↗
- DVS — Dealer Licensing Fees ↗
- Minn. Stat. 168.27 — Motor Vehicle Dealers ↗
- DVS — Vehicle Forms, Documents & Tax Manual ↗
Minnesota dealer license FAQ
How much does a dealer license cost in Minnesota?+
Dealer license fee (all types except DSB): $250; Dealer license renewal (except DSB): $150; DSB (moped/boat/snowmobile-trailer) dealer license: $10; Surety bond (face amount): $50,000; Dealer plates: $86 each (first 4), $51 each (5+); BCA background check: $32 by mail / $42 in person; Local zoning, commercial lease/building, liability insurance: 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 Minnesota?+
Minnesota requires a $50,000 surety bond. Set by Minn. Stat. 168.27, subd. 24 — a $50,000 surety bond for general dealers; boat-trailer, snowmobile-trailer, horse-trailer, and motorized-bicycle dealers (and small-capacity trailer dealers) post only $5,000. The annual premium you pay is a fraction of the face amount, based on credit.
Do you need a physical lot to get a dealer license in Minnesota?+
An established place of business is required — a commercial (not residential) building that meets local zoning, with an office, a display area for inventory, a permanent business sign, and posted hours. Home-based lots generally do not qualify.
How many cars can you sell in Minnesota without a dealer license?+
Generally more than 5 vehicles sold in a 12-month period requires a dealer license under Minn. Stat. 168.27 — verify against your exact activity.
How long is a Minnesota dealer license valid?+
One-year license term starting the month it is issued; renew annually with DVS. Renewals started more than 60 days after expiration require a new background check.
Is dealer training or an exam required in Minnesota?+
Minnesota does not mandate a general pre-licensing dealer-education course. Instead, every owner, officer, board member, and 5%-or-greater shareholder must clear a Bureau of Criminal Apprehension (BCA) background check before a license is issued. New-vehicle dealers that sell EVs must keep at least one employee certified through a Minnesota dealer-association EV training course (Minn. Stat. 168.27, subd. 2a).
How do temporary tags work for Minnesota dealers?+
Dealers issue a temporary permit — valid 60 days from the date of sale under Minn. Stat. 168.091–168.092 — so the buyer can operate the vehicle while title and registration are processed. Permits are completed and reported through DVS in the format the commissioner prescribes.
Data verified 2026-07-17. Requirements change — confirm with the Minnesota Driver and Vehicle Services (DVS), Department of Public Safety before filing.
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