How to Get a Dealer License in North Dakota
In North Dakota, dealer licensing runs through the North Dakota Department of Transportation (NDDOT), Motor Vehicle Division — Dealer Services. To get a used car dealer license in North Dakota you'll need a registered business, a compliant location, a $25,000 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 North Dakota auto dealer license requirements, real costs, and the exact steps — in plain English. Rules change, so verify everything against the North Dakota Department of Transportation (NDDOT), Motor Vehicle Division — Dealer Services's current pages before you file.
- Surety bond
- $25,000
- License term
- Annual term — the dealer license and dealer plates expire December 31. NDDOT mails a renewal application in early November; the signed renewal, $100 fee, and updated proof of insurance must be postmarked by December 31, and renewal is denied below 8 retail sales in the prior year.
- Sales threshold
- North Dakota does not publish a hard 'sell X cars and you must be licensed' number — the statutory test is being engaged in the business of selling (NDCC Ch. 39-22). The documented benchmark is a renewal minimum: a new/used dealer who makes fewer than 8 retail motor vehicle sales in the prior year will not be renewed.
- Pre-licensing
- None. No pre-licensing course, exam, or continuing education is required — NDDOT offers only an optional dealer-training video as a courtesy resource.
License types in North Dakota
| License type | What it covers |
|---|---|
| Used Motor Vehicle Dealer | Used vehicles, trailers (except travel trailers), motorcycles, UTVs/ATVs, snowmobiles, and low-speed vehicles. |
| New Motor Vehicle Dealer | New vehicles under franchise agreements plus the full range of used vehicles and off-highway types. |
| Motor-Powered Recreational (MPR) Vehicle Dealer | Off-highway vehicles — UTVs, ATVs, mopeds, dirt bikes, snowmobiles, motorcycles, and low-speed vehicles. |
| Trailer / Mobile Home / Low-Speed Vehicle Dealer | Asset-type classes — North Dakota has no separate standalone wholesale-only license. |
What it costs
| Item | Cost | Notes |
|---|---|---|
| Used / New MV Dealer license | $100 | Includes one dealer plate; +$20 per additional plate (max 2 at initial licensure) |
| Initial inspection fee | $100 | Non-refundable, initial application only (New/Used/Trailer); $50 for MPR |
| Surety bond premium | Varies | Fraction of the $25,000 face value set by the surety |
| Secondary dealer lot | $100 | Per lot; must be within 5 miles of the main location |
| Late renewal fee | $100 | If not renewed before the December 31 expiration |
Step by step
- Secure an established place of business meeting the premises rules (building 250+ sq ft, lot 2,500+ sq ft total, 32 sq ft sign, listed phone, proper zoning).
- Obtain the continuous surety bond for your license class ($25,000 for new/used, SFN 2933) and garage liability insurance.
- Complete the Application for Dealer's License (SFN 2932), marking the license type and number of dealer plates.
- Submit the application with the bond, insurance proof, license and plate fees, and the non-refundable inspection fee to MVD Dealer Services in Bismarck.
- Pass the on-site inspection by a Motor Vehicle Representative (allow 4-6 weeks).
- Receive the dealer license and plate(s), comply with NDCC Title 39, and renew annually by December 31.
Premises & temp tags
Location: You need an established place of business — a permanent enclosed building of at least 250 sq ft (not a residence, tent, or temporary stand), with the building plus primary display lot totaling at least 2,500 sq ft on properly zoned property. The office must be heated, lit, and equipped, with all records kept on-site and a telephone publicly listed in the dealership name. A sign of at least 32 sq ft with the name in 10-inch letters must be visible from the street. New/used dealers carry garage liability insurance, and no vehicle sales are allowed on Sunday.
Temp tags / plates: North Dakota-resident buyers self-issue a 30-Day Registration Permit online. Dealers/notaries collecting the fees can issue a Notary/Dealer Certificate of License (SFN 59087) valid 75 days, non-residents get a $5 Drive-Out Permit (SFN 2940), and truck/trailer demos use a Demonstration Permit (SFN 2383). Dealer plates are capped at 2 at initial licensure and used only on dealership-owned inventory.
North Dakota-specific things to know
- Use it or lose it — a new/used dealer who makes fewer than 8 retail sales in the prior year will not be renewed; North Dakota enforces a minimum activity level to hold a license.
- No Sunday sales — motor vehicle sales are prohibited statewide on Sundays under North Dakota's blue law.
- Bond size scales by vehicle type, not just 'auto' — $25k for cars, $50k for mobile/manufactured-home dealers, $10k for trailer or MPR dealers — and using the wrong bond form voids the application.
- North Dakota levies a 5% motor vehicle excise tax collected through the title/registration application (SFN 2872) at titling — there is no separate per-sale dealer excise return.
Official North Dakota resources
- NDDOT — Motor Vehicle Dealer Resources ↗
- NDDOT — Forms Catalog ↗
- North Dakota Century Code, Title 39 (Motor Vehicles) ↗
North Dakota dealer license FAQ
How much does a dealer license cost in North Dakota?+
Used / New MV Dealer license: $100; Initial inspection fee: $100; Surety bond premium: Varies; Secondary dealer lot: $100; Late renewal fee: $100. Plus the $25,000 surety bond (you pay a small annual premium on that, not the full amount).
How big is the dealer bond in North Dakota?+
North Dakota requires a $25,000 surety bond. Continuous surety bond for New and Used Motor Vehicle Dealers (Motor Vehicle Dealer Bond, SFN 2933). Bond size scales by license class: $50,000 for mobile/manufactured-home dealers, $10,000 for trailer or MPR dealers, and no bond for low-speed-vehicle dealers. Using the wrong bond form voids the application, and license is suspended if the bond is cancelled.
Do you need a physical lot to get a dealer license in North Dakota?+
You need an established place of business — a permanent enclosed building of at least 250 sq ft (not a residence, tent, or temporary stand), with the building plus primary display lot totaling at least 2,500 sq ft on properly zoned property. The office must be heated, lit, and equipped, with all records kept on-site and a telephone publicly listed in the dealership name. A sign of at least 32 sq ft with the name in 10-inch letters must be visible from the street. New/used dealers carry garage liability insurance, and no vehicle sales are allowed on Sunday.
How many cars can you sell in North Dakota without a dealer license?+
North Dakota does not publish a hard 'sell X cars and you must be licensed' number — the statutory test is being engaged in the business of selling (NDCC Ch. 39-22). The documented benchmark is a renewal minimum: a new/used dealer who makes fewer than 8 retail motor vehicle sales in the prior year will not be renewed.
How long is a North Dakota dealer license valid?+
Annual term — the dealer license and dealer plates expire December 31. NDDOT mails a renewal application in early November; the signed renewal, $100 fee, and updated proof of insurance must be postmarked by December 31, and renewal is denied below 8 retail sales in the prior year.
Is dealer training or an exam required in North Dakota?+
None. No pre-licensing course, exam, or continuing education is required — NDDOT offers only an optional dealer-training video as a courtesy resource.
How do temporary tags work for North Dakota dealers?+
North Dakota-resident buyers self-issue a 30-Day Registration Permit online. Dealers/notaries collecting the fees can issue a Notary/Dealer Certificate of License (SFN 59087) valid 75 days, non-residents get a $5 Drive-Out Permit (SFN 2940), and truck/trailer demos use a Demonstration Permit (SFN 2383). Dealer plates are capped at 2 at initial licensure and used only on dealership-owned inventory.
Data verified 2026-07-17. Requirements change — confirm with the North Dakota Department of Transportation (NDDOT), Motor Vehicle Division — Dealer Services before filing.
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