To apply, you must:
10 Iowa Dealer License Requirements
Iowa Dealer Licenses are issued by the Iowa Department of Transportation's Motor Vehicle Division, Dealer Programs. This page covers Iowa's 8 Dealer License types, their requirements, bond size, costs, and how to apply.
Name your Dealership
Your company name is the first step, because you use it through the entire Dealer License process. Iowa's Dealer application accepts an individual, a partnership, or a corporation, and Iowa's dealer law also recognizes an LLC or LLP owner.
An LLC keeps your business separate from your personal life and adds trust to the name.
Choose your Dealer License Type
Iowa issues 8 main Dealer License types, and the Motor Vehicle Dealer's License and the Towable Recreational Vehicle Dealer's License share one application, Form 417008. The Restricted Dealer License skips the place of business, but only for 5 narrow uses, and it gets no dealer plates.
| License Type | What It Lets You Do |
|---|---|
| Motor Vehicle Dealer's LicenseIowa Code chapter 322. New vehicles, used vehicles, or both | Buy and sell cars, trucks, motorcycles, motor homes, low-speed vehicles, and autocycles at the dealer auctions and to the public. Towable RVs, salvage, and mobile homes need their own license |
| Towable Recreational Vehicle Dealer's LicenseIowa Code chapter 322C | Sell travel trailers and other towable RVs. Same application form as the Motor Vehicle Dealer's License, and no on-site inspection |
| Restricted Dealer License | For 5 uses only: lease-option sales, repossessed vehicles, fleet sales, selling more than 6 vehicles a year at public auction only, and insurers disposing of claim vehicles. No place of business required, but no dealer plates and no extension lot |
| Vehicle Recycler & Used Parts Dealer LicenseVehicle Rebuilder, Used Vehicle Parts Dealer, or Vehicle Salvager, in any combination | Rebuild, salvage, or sell used parts from vehicles. No bond; you register with NMVTIS and report inventory within 2 business days of purchase |
| Manufacturer, Distributor, or New Vehicle Wholesaler's LicenseIssued under Iowa Code as a Manufacturer's License, a Wholesaler's License, or a Distributor or Wholesaler's License | Make, distribute, or wholesale new vehicles to Dealers. No bond; a new vehicle Wholesaler carries the same liability insurance as a Dealer |
| Special Equipment Wholesaler License | Install cranes, hook loaders, buckets, aerial ladders, tanks, or special equipment on new trucks of 14,500 lbs GVWR or more, without manufacturer authorization |
| Motor Vehicle Leasing License | Required only if you lease vehicles for more than 60 days |
| Extension Lot License | One for each additional lot in the same city or township that isn't next to your main lot. Not issued to a Restricted Dealer |
Get your Dealer Bond (Surety Bond)
An Iowa Motor Vehicle Dealer's License requires a $75,000 bond, filed with the Iowa DOT Motor Vehicle Division (Iowa Code 322.4(1)(g)). The bond protects customers if you break Iowa's dealer laws. A $75,000 Dealer Bond costs only $375 a year at the base rate, after a credit check.
The bond runs to the State of Iowa and must give the Motor Vehicle Division 30 days' notice before it can be canceled.
| License Type | You Pay | Bond Amount |
|---|---|---|
| Motor Vehicle Dealer's LicenseIowa - Motor Vehicle Dealer ($75,000). Credit check required | $375/yearabout $31 a month | $75,000 |
| Towable Recreational Vehicle Dealer's LicenseIowa - Towable Recreational Vehicle Dealer ($75,000). Credit check required | $375/yearabout $31 a month | $75,000 |
| Vehicle Recycler & Used Parts Dealer License | No Bond Required | |
| Manufacturer, Distributor, or New Vehicle Wholesaler's License | No Bond Required | |
Get your Dealer Liability Insurance
An Iowa Motor Vehicle Dealer's License requires financial liability coverage of at least $100,000 per person and $300,000 per accident for bodily injury (Iowa Code 322.4(1)(h)). Property damage coverage must be at least $50,000.
Those are the limits of the policy, not the cost; your insurance agent quotes the price. You certify the coverage on the application, and keeping it continuous with no lapse is your responsibility for as long as you hold the license. The same limits apply to a new vehicle Wholesaler's License.
Set up your Dealer Office (Principal Place of Business)
An Iowa Motor Vehicle Dealer's License requires a principal place of business: “a building actually occupied and located in this state where the public and the department may contact the owner or operator during regular business hours” (761 IAC 425.2). The table below is the rule's own list.
Iowa's dealer rules never mention a home address, so a detached shop at your house isn't excluded by the text. An ordinary house rarely clears the list itself: a display area, a walled-off indoor repair area, and 32 posted hours a week.
| What Iowa Requires | |
|---|---|
| Office | An adequate office area, separate from other facilities, for your records, certificates of origin, and titles, with a telephone provided specifically for business use |
| Display area | At least 18 by 30 feet, or 10 by 15 feet for motorcycles. New-vehicle dealers display inside a building; used-vehicle dealers may use an outdoor all-weather surface, never grass or exposed soil |
| Repair area | At least 14 by 24 feet, or 10 by 15 feet for motorcycles, inside a building, separated from the office and display areas by solid floor-to-ceiling walls and solid full-length doors |
| Hours | At least 32 posted hours a week between 7 a.m. and 9 p.m., Monday through Friday. Motorcycle-only dealers are exempt |
| Sign | None published. 761 IAC 425 sets no sign size, lettering, or permanence rule |
| Zoning | Written evidence from the city or county zoning office that the location complies with zoning, or is a legal nonconforming use |
| Shared address | Not allowed. Iowa DOT won't issue a license at the principal place of business of an existing licensee |
| Second city | A separate license for each city or township where you keep a place of business |
Attend the Pre-Licensing Class (Auto Dealer Pre-Licensing Education Class) — Used Dealers only
An Iowa used motor vehicle dealer applicant must complete 8 hours of pre-licensing education before submitting the application (Iowa Code 322.7A). New-vehicle-only dealers, wholesalers, manufacturers, and vehicle recyclers have no class, and Iowa has no dealer exam.
The Iowa Independent Automobile Dealers Association (IIADA) schedules the class with a community college, and the college issues your completion certificate. Iowa DOT's dealer page sends you to IIADA for class schedules, locations, and fees.
- 8 hours, completed before you apply
- Up to $55 per contact hour, so no more than $440 for the class, materials included (281 IAC 21.50)
- 5 hours of continuing education every 2 years to renew a used dealer license. The 5 hours are waived at your first renewal if you took the 8-hour class within the previous 24 months
Disclose your Criminal History (Statement of Previous History)
Iowa requires no fingerprint or state background check for a Dealer License. The application asks instead for a statement of your previous history, record, and association (Iowa Code 322.4(1)(e)). It also asks whether the applicant, any partner, or any corporate officer or director has ever been convicted of a felony.
The felony question is followed by a checklist of specific convictions, which includes:
- consumer fraud
- the salvage title law (§321.52) and the odometer law (§321.71)
- tampering with a vehicle (§321.78) and altering a VIN (§321.92)
- a fraudulent application (§321.97)
- failing to deliver or obtain a proper certificate of title
Iowa DOT's Bureau of Investigation & Identity Protection audits sales paperwork and investigates complaints after you're licensed, not before.
If you have a record
- Denial is discretionary, but the 5-year bar is not. Iowa DOT “may” deny for a vehicle-related conviction after notice and a hearing (Iowa Code 322.6). A fraudulent practice, or an indictable offense connected to selling vehicles, bars you from owning or working for a licensed Dealer for 5 years (322.3(13)).
- The clock runs from the date of conviction, not from release or the end of probation.
- Only vehicle-connected crimes are listed. An unrelated felony is not a named ground, and Iowa uses no moral-turpitude test. The department may also deny an applicant “of bad business repute.”
- Simple misdemeanors don't count; serious and aggravated ones can. The trigger is an “indictable offense,” anything above a simple misdemeanor (Iowa Code 801.4). A pending charge with no conviction doesn't trigger the bar.
- Iowa's dealer law is silent on expungement, sealing, and pardons, so answer the felony question truthfully. A material false statement is its own ground for denial (322.6(1)(a)).
- You can appeal. A denial comes only after notice and a hearing, and you can contest Iowa DOT's decision in writing within 20 days of the mailed notice (761 IAC 425.17(5)).
Submit your Dealer License Application (Form 417008)
You apply to the Iowa DOT Motor Vehicle Division by mail; there is no online portal. The application is a fill-then-print form, sent with your supporting documents and fees to P.O. Box 9278, Des Moines. The Motor Vehicle Dealer's License fee is $70 for 2 years, and every fee is itemized under costs.
The form asks for the business's EIN; a sole owner who isn't required to have one gives an SSN instead. It also names two partners or two corporate officers, with a bona fide address for each.
Pass the On-Site Inspection (Bureau of Investigation & Identity Protection)
An Iowa DOT representative physically inspects your principal place of business after you apply and before the Motor Vehicle Dealer's License is issued (761 IAC 425.4(2)). You schedule the appointment with the Bureau of Investigation & Identity Protection, a bureau inside Iowa DOT, once your location is fully compliant.
Get your Dealer License Plates
Iowa dealer license plates cost $70 for the certificate plus $40 per plate, each for a 2-year period. Iowa DOT issues them “as applied for” with no fixed cap (Iowa Code 321.58, 321.60). A plate used for hauling a load or towing a trailer costs $750 for 2 years.
Dealer tags let you drive an inventory vehicle for private or business purposes (Iowa Code 321.57(1)). The vehicle must stay in your inventory and be continuously offered for sale at retail. A service customer can drive a plated loaner, other than a truck, while you work on their vehicle.
Iowa issues 5 kinds of dealer plate:
- Regular dealer plates, for cars, motor homes, multipurpose vehicles, trailers, travel trailers, and trucks
- Motorcycle dealer plates
- Limited use plates
- Transporter plates
- HAUL & TOW plates, for hauling a load or towing a trailer
Dealer License Cost
An Iowa Motor Vehicle Dealer's License costs $70 for 2 years, lower than most states. Every other fee on this page is in the table.
| Fee | Amount |
|---|---|
| Motor Vehicle Dealer's License | $70 for 2 years$20 for 2 years, each additional car lot in the same city or township |
| Manufacturer's License | $70 for 2 years |
| Distributor or Wholesaler's LicenseNew vehicles | $40 for 2 years |
| Vehicle Recycler & Used Parts Dealer License | $70 for 2 years, any combination of rebuilder, parts dealer, and salvager$35 to change your place of business, extension, or operations |
| Dealer Bond | $375 a year, $75,000 bond, credit check required |
| Liability insurance | $100,000 per person, $300,000 per accident, $50,000 property damage, priced by your agent |
| Pre-licensing education classUsed dealers only | $440 at most for the 8-hour class, capped at $55 per contact hour$275 at most for the 5-hour renewal class |
| Dealer plates | $70 certificate, for 2 years$40 per plate, for 2 years$750 per HAUL & TOW plate, for 2 years$5 replacement plate, or $40 for a replacement special plate |
| Temporary permitsFairs, vehicle shows, classic cars, nonresident truck displays, firefighting shows, motorcycle rallies | $10 each; classic car permits capped at 3 a year |
Dealer License Renewal
An Iowa Motor Vehicle Dealer's License is valid for 2 years and expires December 31 of even-numbered years, no matter when it was issued (Iowa Code 322.7(3)). Every Iowa DOT dealer-family license and your dealer plates expire on that same date. Renewal costs the same $70 as the initial license.
You have the month of expiration and the month after it to renew, so through January 31 of the odd year. After that you apply as a new applicant.
Common Questions
Can you get an Iowa Dealer License with a felony?
Yes, unless the felony was a fraudulent practice or connected to selling vehicles. Those convictions bar you from owning or working for a licensed Dealer for 5 years from the conviction date (Iowa Code 322.3(13)). Iowa DOT may also deny after a hearing (322.6). An unrelated felony isn't a listed ground, but disclose it; the application asks.
Can you get a Dealer License in Iowa without a lot?
Not for a regular dealership. The Motor Vehicle Dealer's License requires a principal place of business with an office, a display area, and an indoor repair area. The full list is under Office. Only the Restricted Dealer License skips it, for 5 narrow uses, and it gets no dealer plates.
How many cars can you sell in Iowa without a Dealer License?
In Iowa, selling more than 6 motor vehicles at retail in a 12-month period may create a presumption that you are engaged in the business. That requires a used motor vehicle dealer license (Iowa Code 322.2(8) and 322.3(2)). Iowa's law has no carve-out for vehicles you owned and used personally.
What is the Iowa Restricted Dealer License?
A Dealer License limited to 5 uses (761 IAC 425.9, linked under Office). They are lease-option sales, repossessed vehicles, fleet sales, auction-only sales of more than 6 vehicles a year, and insurers disposing of claim vehicles. It needs a business location in Iowa but no “place of business,” and it can't get dealer plates or an extension lot license.
Does Iowa have a wholesale dealer license?
Only for new vehicles. Iowa's Wholesaler's License (Iowa Code 322.27A) and Distributor or Wholesaler's License (322.28) are for new vehicles, with a $40 fee for 2 years. The dealer application offers retail or one of the 5 restricted uses, with no wholesale box. A used-vehicle Dealer buys at the dealer auctions on the Motor Vehicle Dealer's License.
Do salespeople need a license in Iowa?
No. Iowa Code 322.3(3) says the dealer licensing law does not require the separate licensing of salespeople employed by a retail Dealer. You keep a current written record of every salesperson acting on your behalf (761 IAC 425.14). The 5-year bar for vehicle-related convictions still applies to your salespeople and employees.
Do I need a business bank account?
No. Iowa Code chapter 322, chapter 321H, and 761 IAC chapter 425 never mention a bank account, and Iowa DOT's dealer FAQ doesn't ask for one. The financial items on the application are the $75,000 bond and the liability insurance certification.
Can you drive a car on dealer plates for personal use in Iowa?
Yes. Iowa Code 321.57(1) lets a Dealer drive a vehicle it owns for private or business purposes on a dealer plate. That includes hauling a load or towing a trailer. The vehicle has to be in your inventory and continuously offered for sale at retail. Plates can't go on a rental or leased vehicle.
Support
Iowa DOT's Motor Vehicle Division, Dealer Programs, issues every license on this page and the dealer plates. Its Bureau of Investigation & Identity Protection schedules the on-site inspection and runs audits after you're licensed.
| Contact | Detail |
|---|---|
| Department | Iowa Department of Transportation, Motor Vehicle Division, Dealer Programs |
| Phone | (515) 237-3156 Dealer Programs(515) 239-1101 Iowa DOT Central Office |
| [email protected] | |
| Address | P.O. Box 9278Des Moines, IA 50306-9278Central Office: 800 Lincoln Way, Ames, IA 50010 |
Additional sources (7)
The forms and the portal for each step are linked in the steps. These are the law, the rules, and the agency pages the page was checked against.
- Iowa Code chapter 322C (PDF) — the Towable Recreational Vehicle Dealer law: the $75,000 bond and the 30-day decision clock
- Iowa Code chapter 321 (PDF) — dealer plates: private and business use (321.57), the fees and the “as applied for” count (321.58, 321.60), and the December 31 expiration (321.61). Also 321.115, the 20-year collector-vehicle carve-out
- Iowa Code chapter 321H (PDF) — the Vehicle Recycler law: the $70 fee, NMVTIS registration, the 30-day decision, and its own 5-year conviction bar
- 281 Iowa Administrative Code chapter 21 (PDF) — Department of Education rule 21.50: the $55 per contact hour cap on the dealer education courses
- 2026 Iowa Acts chapter 1057, House File 2485 (PDF) — records must stay at your place of business or a parent company's US location. Electronic records go to Iowa DOT within 24 hours of a request. It also sets the remote-sale title and disclosure rules
- Iowa Code 801.4 (PDF) — “indictable offense” means any offense other than a simple misdemeanor
- Get a Recycler & Used Parts Dealer License (Iowa DOT) — the recycler office, telephone, and zoning rule, and the Junkyard Control Law's 1,000-foot highway setback
