How to Get a Dealer License in Montana
In Montana, dealer licensing runs through the Montana Motor Vehicle Division (MVD), Vehicle Services Bureau — Department of Justice. To get a used car dealer license in Montana 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 Montana auto dealer license requirements, real costs, and the exact steps — in plain English. Rules change, so verify everything against the Montana Motor Vehicle Division (MVD), Vehicle Services Bureau — Department of Justice's current pages before you file.
- Surety bond
- $50,000
- License term
- Licenses renew annually on staggered expiration months set by the department (MCA 61-4-101(3)). The dealer files an annual report with fees, updated bond and insurance, and any requested photos by the 15th of the month before the expiration month (MCA 61-4-124). Renewal is filed on Form MV25R.
- Sales threshold
- Montana has no simple 'sell N cars a year' trigger — under MCA 61-4-101(1), anyone in the business of buying, selling, exchanging, consigning, or brokering a vehicle that is not registered in their own name must be licensed (the anti-curbstoning rule). To keep a used-dealer license, the dealer must certify 12 or more retail sales per calendar year (roughly one a month) or pay a penalty.
- Pre-licensing
- None. No pre-licensing education, dealer school, or written exam is required — the gating step is instead a business-premises inspection (Form MV105) by the Montana Highway Patrol, local law enforcement, or a DOJ Compliance Specialist.
License types in Montana
| License type | What it covers |
|---|---|
| Used Dealer | Used motor vehicles, power sports, and trailers only — cannot sell new vehicles. |
| New (Franchise) Dealer | New and used vehicles under a franchise agreement; must maintain a bona fide service department. |
| Wholesale Dealer | Sells used vehicles only to licensed Montana dealers, auto auctions, or other wholesalers — no retail; gets demonstrator plates only and cannot issue temp permits. |
| Broker / Auto Auction | Brokers negotiate sales without taking ownership; auto auctions sell used vehicles only to licensed dealers, wholesalers, or wrecking facilities. |
What it costs
| Item | Cost | Notes |
|---|---|---|
| License application fee | $30 | For new, used, broker, and wholesaler licenses (MCA 61-4-101(8)(a)) |
| Dealer plate | $25 / year per set | First set issued with the license; additional sets by a sales-volume formula |
| Demonstrator plate | $5 per plate | MCA 61-4-129; the only plate type wholesale dealers receive |
| Surety bond | $50,000 face value | Coverage, not a fee — annual premium is a fraction of this, based on credit |
| Used-dealer annual report | Approx. $30 (+$25 penalty) | Filing fee referenced at MCA 61-4-124(3); the $25 penalty applies if the dealer cannot certify 12+ retail sales — confirm the exact filing fee |
Step by step
- Phase I — submit the Dealer License Application (Form MV25); the Vehicle Services Bureau investigates all owners/officers and calculates total fees.
- After the Bureau confirms you qualify, proceed to Phase II and schedule the premises inspection (Form MV105).
- Obtain the $50,000 continuous surety bond and general liability insurance, both naming the State of Montana as certificate holder.
- Get written zoning/land-use compliance verification from the local board, and add a Franchise Letter if applying as a franchise dealer.
- Return all forms, documents, and fees to the Vehicle Services Bureau in Helena and pass the premises inspection.
- Receive approval in about three weeks; dealer plates arrive roughly three to four weeks after the license.
Premises & temp tags
Location: You need a permanent, non-residential building where sales are made and records are kept, plus a display lot. Multiple lots must be within 200 feet of each other and the records building within 1,000 feet of a lot; no more than three other dealers may share the location. You need a telephone in the dealership name, written local zoning verification, a business sign with letters at least 6 inches tall readable from 150 feet, and a computer, printer, and internet to issue electronic temporary registration permits.
Temp tags / plates: Licensed dealers issue electronic Temporary Registration Permits (TRPs) to buyers through the state system (MCA 61-3-224), which is why the premises must have a computer, printer, and internet. Wholesalers, brokers, and manufactured-home dealers cannot issue TRPs; a separate Transit Permit (Form MV69) covers moving unregistered vehicles.
Montana-specific things to know
- Montana has NO general state sales or use tax — there is no sales-tax form or point-of-sale sales-tax collection on a vehicle. This is the engine behind the 'Montana LLC' phenomenon, where out-of-staters form a Montana LLC to title expensive RVs, exotics, and trucks in Montana and avoid their home state's sales tax, so dealers should expect LLC-titled buyers.
- Light vehicles 11 years old or older can be permanently registered for a one-time fee (about $87.50 plus local-option amounts) and never renewed — but permanent registration cannot be transferred, so a sale cancels it and the buyer must re-title and register (MCA 61-3-562).
- Used dealers must be genuinely active — the 12-retail-sales-per-year floor (or a $25 penalty) discourages plate-only hobby licenses.
- An unusual premises rule caps co-tenancy: no more than three other dealers, wholesalers, brokers, or auctions may share the same building or location (MCA 61-4-101(6)).
Official Montana resources
- Montana MVD — Dealer Forms ↗
- Montana MVD — Title & Registration Forms ↗
- Montana Dealer Statutes (MCA Title 61, Ch. 4) ↗
Montana dealer license FAQ
How much does a dealer license cost in Montana?+
License application fee: $30; Dealer plate: $25 / year per set; Demonstrator plate: $5 per plate; Surety bond: $50,000 face value; Used-dealer annual report: Approx. $30 (+$25 penalty). 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 Montana?+
Montana requires a $50,000 surety bond. Continuous surety bond required for used, new, wholesale, auto auction, and broker licenses (MCA 61-4-101(9)), renewed annually. Montana does NOT discount the bond for used-only auto dealers — the reduced $15,000 (motorcycle/quadricycle) and $5,000 (motorboat/watercraft/snowmobile/off-highway) tiers apply only to businesses restricted to those vehicle types.
Do you need a physical lot to get a dealer license in Montana?+
You need a permanent, non-residential building where sales are made and records are kept, plus a display lot. Multiple lots must be within 200 feet of each other and the records building within 1,000 feet of a lot; no more than three other dealers may share the location. You need a telephone in the dealership name, written local zoning verification, a business sign with letters at least 6 inches tall readable from 150 feet, and a computer, printer, and internet to issue electronic temporary registration permits.
How many cars can you sell in Montana without a dealer license?+
Montana has no simple 'sell N cars a year' trigger — under MCA 61-4-101(1), anyone in the business of buying, selling, exchanging, consigning, or brokering a vehicle that is not registered in their own name must be licensed (the anti-curbstoning rule). To keep a used-dealer license, the dealer must certify 12 or more retail sales per calendar year (roughly one a month) or pay a penalty.
How long is a Montana dealer license valid?+
Licenses renew annually on staggered expiration months set by the department (MCA 61-4-101(3)). The dealer files an annual report with fees, updated bond and insurance, and any requested photos by the 15th of the month before the expiration month (MCA 61-4-124). Renewal is filed on Form MV25R.
Is dealer training or an exam required in Montana?+
None. No pre-licensing education, dealer school, or written exam is required — the gating step is instead a business-premises inspection (Form MV105) by the Montana Highway Patrol, local law enforcement, or a DOJ Compliance Specialist.
How do temporary tags work for Montana dealers?+
Licensed dealers issue electronic Temporary Registration Permits (TRPs) to buyers through the state system (MCA 61-3-224), which is why the premises must have a computer, printer, and internet. Wholesalers, brokers, and manufactured-home dealers cannot issue TRPs; a separate Transit Permit (Form MV69) covers moving unregistered vehicles.
Data verified 2026-07-17. Requirements change — confirm with the Montana Motor Vehicle Division (MVD), Vehicle Services Bureau — Department of Justice before filing.
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