How to Get a Dealer License in Pennsylvania
In Pennsylvania, dealer licensing runs through the PA State Board of Vehicle Manufacturers, Dealers and Salespersons (Dept. of State / BPOA) — licensing; PennDOT (Driver & Vehicle Services) handles title, registration and dealer plates. To get a used car dealer license in Pennsylvania you'll need a registered business, a compliant location, a $20,000 (PennDOT dealer-plate bond — not a Board license bond) 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 Pennsylvania auto dealer license requirements, real costs, and the exact steps — in plain English. Rules change, so verify everything against the PA State Board of Vehicle Manufacturers, Dealers and Salespersons (Dept. of State / BPOA) — licensing; PennDOT (Driver & Vehicle Services) handles title, registration and dealer plates's current pages before you file.
- Surety bond
- $20,000 (PennDOT dealer-plate bond — not a Board license bond)
- License term
- The Board dealer license runs on a two-year (biennial) term and is renewed through the Dept. of State's online professional-licensing system before expiration (current cycle June 1, 2025–May 31, 2027).
- Sales threshold
- Selling five (5) or more vehicles in any 12-month period generally makes you a 'dealer' who must be licensed by the State Board of Vehicles.
- Pre-licensing
- None — Pennsylvania does not mandate a pre-licensing dealer education course or exam for a standard vehicle dealer license (unlike states such as Texas). Verify current requirements with the Board before applying.
License types in Pennsylvania
| License type | What it covers |
|---|---|
| Vehicle Dealer | Retail sales of new and/or used motor vehicles from an established place of business. Pennsylvania issues one 'Dealer' license rather than separate new/used tiers. |
| Vehicle Salesperson | An individual who sells vehicles for a licensed dealer; each salesperson holds their own Board license. |
| Wholesaler | Buys and sells only to other licensed dealers and at auction — not to retail customers. |
| Vehicle Auction | Operates a wholesale auction where licensed dealers buy and sell. |
| Manufacturer / Distributor (and their representatives) | Builds or distributes vehicles and franchises dealers; representatives are separately licensed. |
| Dealer Branch Lot | An additional sales location operated under an existing dealer license. |
What it costs
| Item | Cost | Notes |
|---|---|---|
| Dealer license application fee (Board) | $190 | Effective July 1, 2025 (49 Pa. Code § 19.4) |
| Dealer biennial renewal (Board) | $274 | Two-year cycle, e.g. June 1, 2025–May 31, 2027 |
| Salesperson license | $70 application / $141 biennial renewal | Each salesperson licensed individually |
| Auction or Dealer Branch Lot | $190 application / $274 biennial renewal each | Per location |
| PennDOT dealer-plate bond (face amount) | $20,000 | Required under 75 Pa.C.S. § 1335 to obtain dealer registration plates; annual surety premium is a fraction of this |
| PennDOT dealer registration & plate fees | Varies — verify with PennDOT | See the MV-70S Schedule of Fees; amounts change and depend on plate count |
Step by step
- Form and register your business entity and secure any local business permits.
- Secure a compliant established place of business (permanent building, office, display area, sign, posted hours).
- Apply for the Vehicle Dealer license with the PA State Board of Vehicles (Dept. of State / BPOA) and pay the $190 application fee; license each salesperson.
- Separately register with PennDOT (Driver & Vehicle Services) as a dealer for title/registration processing.
- Post the $20,000 bond with PennDOT under 75 Pa.C.S. § 1335 to be issued dealer registration plates.
- Set up temporary-registration issuance — become an authorized issuing agent or contract a messenger service — and begin processing titles on Form MV-1 / MV-4ST.
Premises & temp tags
Location: The Board of Vehicles Act requires an established, permanent place of business — an enclosed building you own or lease with office space, business records, a display area for vehicles, a permanent business sign visible from the road, and regular posted business hours. A pure home/residential address generally does not qualify. Confirm current square-footage and display-lot minimums with the Board before signing a lease.
Temp tags / plates: Temporary registration plates and cards are issued through PennDOT's network of authorized issuing agents and messenger/card-agent services. A dealer can become an authorized issuing agent to issue temporary registration at the point of sale, or route the work through a contracted messenger service; card agents can transfer an existing plate but cannot issue new temporary plates.
Pennsylvania-specific things to know
- Two agencies, two applications: the Dept. of State's Board of Vehicles issues the dealer LICENSE, while PennDOT handles title/registration and issues the dealer PLATES. You must deal with both — one does not stand in for the other.
- No bond for the license, but a $20,000 bond for the plates: the surety bond lives on the PennDOT side (75 Pa.C.S. § 1335) and is tied to dealer registration plates, not to holding the Board license.
- Pennsylvania has no separate 'used' vs 'new' dealer license class — one Dealer license covers both — and no state-mandated pre-licensing dealer course.
- Temporary registration is handled through PennDOT's authorized issuing-agent / messenger system; being a licensed dealer does not automatically make you an issuing agent.
Official Pennsylvania resources
- PA State Board of Vehicles — dealer/salesperson licensing ↗
- PennDOT — Dealers & Business Partners ↗
- PennDOT — Forms & Publications (MV forms) ↗
Pennsylvania dealer license FAQ
How much does a dealer license cost in Pennsylvania?+
Dealer license application fee (Board): $190; Dealer biennial renewal (Board): $274; Salesperson license: $70 application / $141 biennial renewal; Auction or Dealer Branch Lot: $190 application / $274 biennial renewal each; PennDOT dealer-plate bond (face amount): $20,000; PennDOT dealer registration & plate fees: Varies — verify with PennDOT. Plus the $20,000 (PennDOT dealer-plate bond — not a Board license bond) surety bond (you pay a small annual premium on that, not the full amount).
How big is the dealer bond in Pennsylvania?+
Pennsylvania requires a $20,000 (PennDOT dealer-plate bond — not a Board license bond) surety bond. Pennsylvania is unusual: the State Board of Vehicles (Dept. of State) does NOT require a surety bond to hold the dealer LICENSE. The $20,000 bond is posted with PennDOT under 75 Pa.C.S. § 1335 to be issued dealer/manufacturer REGISTRATION PLATES. Farm-equipment dealers, mobile-home dealers/manufacturers and modular-housing manufacturers are statutorily exempt from posting it.
Do you need a physical lot to get a dealer license in Pennsylvania?+
The Board of Vehicles Act requires an established, permanent place of business — an enclosed building you own or lease with office space, business records, a display area for vehicles, a permanent business sign visible from the road, and regular posted business hours. A pure home/residential address generally does not qualify. Confirm current square-footage and display-lot minimums with the Board before signing a lease.
How many cars can you sell in Pennsylvania without a dealer license?+
Selling five (5) or more vehicles in any 12-month period generally makes you a 'dealer' who must be licensed by the State Board of Vehicles.
How long is a Pennsylvania dealer license valid?+
The Board dealer license runs on a two-year (biennial) term and is renewed through the Dept. of State's online professional-licensing system before expiration (current cycle June 1, 2025–May 31, 2027).
Is dealer training or an exam required in Pennsylvania?+
None — Pennsylvania does not mandate a pre-licensing dealer education course or exam for a standard vehicle dealer license (unlike states such as Texas). Verify current requirements with the Board before applying.
How do temporary tags work for Pennsylvania dealers?+
Temporary registration plates and cards are issued through PennDOT's network of authorized issuing agents and messenger/card-agent services. A dealer can become an authorized issuing agent to issue temporary registration at the point of sale, or route the work through a contracted messenger service; card agents can transfer an existing plate but cannot issue new temporary plates.
Data verified 2026-07-17. Requirements change — confirm with the PA State Board of Vehicle Manufacturers, Dealers and Salespersons (Dept. of State / BPOA) — licensing; PennDOT (Driver & Vehicle Services) handles title, registration and dealer plates before filing.
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