To apply, you must:
9 North Dakota Dealer License Requirements
North Dakota Dealer Licenses are issued by the Department of Transportation's Motor Vehicle Division, Dealer Services. This page covers North Dakota's 5 Dealer License types, their requirements, bond sizes, 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. North Dakota's dealer law defines a Dealer as a person, partnership, corporation, or limited liability company (§39-01-01). So a sole proprietor, a partnership, a corporation, or an LLC can hold the license.
An LLC keeps your business separate from your personal life and adds trust to the name. With an LLC or corporation, the application takes the business's federal employer identification number instead of anyone's SSN.
Choose your Dealer License Type
North Dakota's 5 Dealer License types are on one application, SFN 2932, and the bond amount and fee vary by type. Low Speed Vehicle Dealers need no license at all; a $20 dealer plate registration is optional.
| License Type | What It Lets You Do |
|---|---|
| New Motor Vehicle DealerFranchise; requires garage liability insurance | Sell new vehicles under a franchise, plus used vehicles, most trailers, motorcycles, UTVs, ATVs, mopeds, unconventional vehicles, snowmobiles, and low-speed vehicles |
| Used Motor Vehicle DealerRequires garage liability insurance | Sell used vehicles only, plus the same trailers, motorcycles, UTVs, ATVs, mopeds, unconventional vehicles, snowmobiles, and low-speed vehicles as a New Motor Vehicle Dealer |
| Motor-Powered Recreational (MPR) Vehicle Dealer | Sell off-highway vehicles (UTVs, ATVs, mopeds, dirt bikes, snowmobiles), unconventional vehicles, motorcycles, and low-speed vehicles |
| Trailer Dealer | Sell all trailers except travel trailers, plus low-speed vehicles |
| Mobile Home and Manufactured Home DealerCalled the Motor Home License on page 2 of the application | Sell motor homes, mobile homes, manufactured homes, and travel trailers, including horse trailers with living quarters |
Get your Dealer Bond (Surety Bond)
A North Dakota New or Used Motor Vehicle Dealer License requires a $25,000 bond, filed with the director before the license is issued (§39-22-05). The bond protects customers if you break North Dakota's dealer laws. A $25,000 Dealer Bond costs only $150 to $250 a year at the base rate, after a credit check.
The Trailer Dealer License requires a $10,000 bond (the table below). The Motor-Powered Recreational Vehicle Dealer License requires a $10,000 bond, and the Mobile Home and Manufactured Home Dealer License requires a $50,000 bond. Every bond is continuous, and the surety can cancel it only with 30 days' written notice to you and the department.
| License Type | You Pay | Bond Amount |
|---|---|---|
| New Motor Vehicle DealerNorth Dakota - NEW FRANCHISE Motor Vehicle Dealer ($25,000). Credit check required | $150/yearabout $13 a month | $25,000 |
| Used Motor Vehicle DealerNorth Dakota - USED Motor Vehicle Dealer ($25,000). Credit check required | $250/yearabout $21 a month | $25,000 |
| Trailer DealerCredit check required | $100/yearabout $8 a month | $10,000 |
Get your Garage Liability Insurance — New and Used Motor Vehicle Dealers only
A North Dakota New or Used Motor Vehicle Dealer License requires a continuous liability insurance policy, filed before the license is issued (§39-22-19). It must include general, business automobile, and sales, repair, or service operations liability, as appropriate to the business. Your insurance agent sets the price.
The application calls it garage liability insurance and scopes it to New and Used Motor Vehicle Dealers only. Your insurer must notify the department of any cancellation. If coverage lapses, the license is revoked by operation of law until the department receives proof of reinstated coverage.
Set up your Dealer Office (Established Place of Business)
A North Dakota New or Used Motor Vehicle Dealer License requires an established place of business in North Dakota (§39-22-15). That means a permanent enclosed building of at least 250 square feet, next to the primary display lot. The statute says it “does not mean a residence, tents, temporary stands, or other temporary quarters.”
The Motor-Powered Recreational Vehicle Dealer chapter bans a residence the same way. The Trailer Dealer and Mobile Home and Manufactured Home Dealer chapters publish no residence rule, and the table below is each chapter's own wording.
| License Type | What the Office Must Be |
|---|---|
| New or Used Motor Vehicle Dealer | A permanent enclosed building of at least 250 sq ft, owned, rented, or leased, next to the primary display lot, with building and lot together at least 2,500 sq ft. A sign of at least 32 sq ft with the dealership name in 10-inch letters, visible from the street. A publicly listed telephone in the dealership's name, open to the public in normal business hours, heated and lighted with standard office equipment, on property zoned or approved for the purpose. Not a residence, tent, or temporary stand |
| Motor-Powered Recreational (MPR) Vehicle Dealer | A permanent enclosed building or structure in North Dakota, owned or leased, where sales, repair, service, and parts storage happen. Several buildings count as one place of business if none sits more than 1,000 feet from the others, and unimproved lots may be used for sales, storage, or display. Not a residence, tent, temporary stand, or “permanent quarters occupied pursuant to any temporary arrangement” |
| Trailer Dealer | A “primary established place of business,” with all business records kept in one central location. The chapter sets no building size, sign, zoning, or residence rule |
| Mobile Home and Manufactured Home Dealer | “A permanent office and place of business, and an adequate service department.” The chapter sets no building size, sign, zoning, or residence rule |
Background Check — Not Required
A North Dakota Dealer License requires no background check, no fingerprints, and no criminal history question, for any of the 5 license types. The application asks nothing about convictions, and none of the 4 dealer chapters names a criminal record as a ground to deny or revoke a license.
If you have a record
- No conviction bars you. The grounds for denial are conduct in the business (§39-22-04). They are: a material misstatement, willful noncompliance, permitting unlicensed sales, violating sale, finance, odometer, or VIN laws, or losing your place of business
- No waiting period. Nothing in the dealer chapters sets a time after a conviction or release
- Felony or misdemeanor, same answer. Neither word appears in the licensing chapters
- Nothing to disclose. SFN 2932 has no conviction question
- State law backs this up. A person may not be disqualified from a licensed occupation “solely because of prior conviction of an offense” (§12.1-33-02.1)
Submit your Dealer License Application (SFN 2932)
You apply to Dealer Services on paper, with the Application for Dealer's License, SFN 2932. North Dakota has no online dealer license application, and the same form covers all 5 license types. Every fee is itemized under costs.
The annual license fee, paid with the application:
- New or Used Motor Vehicle Dealer: $100, plus a $100 nonrefundable initial inspection fee
- Trailer Dealer: $30, plus a $100 initial inspection fee
- Motor-Powered Recreational Vehicle Dealer: $25, plus a $50 initial inspection fee
- Mobile Home and Manufactured Home Dealer: $35; the form lists no inspection fee
The form asks for one number for the business: its federal employer identification number, or your SSN if you apply as an individual (§39-22-14). It is a mail-in form, and Dealer Services' address is under Support.
Pass the Location Inspection (Motor Vehicle Representative)
A North Dakota Dealer License location is inspected after you apply and before the license is issued. The department says to allow 4 to 6 weeks for it. A Motor Vehicle Representative records the inspection date and whether the dealership passed on the application itself, for initial applications only.
Get your Dealer License Plates
North Dakota dealer license plates come with the license: the annual fee includes 1 plate for every license type. Additional plates are $20 each for a New or Used Motor Vehicle Dealer and $10 each for a Trailer, MPR, or Mobile Home Dealer. A New or Used Dealer is allowed at most 2 plates on initial licensure.
Dealer tags let you drive your inventory. A New or Used Motor Vehicle Dealer's plate may not be used on a service vehicle or on a sold unit in the buyer's possession. It also may not be used by a family member not living at your residence, or by anyone not directly involved in running the dealership (§39-22-17).
A Mobile Home Dealer's plates may be used by the Dealer and the Dealer's agents and servants.
After the first year, a New or Used Dealer's plate count follows the previous year's retail sales:
- 1 to 7 sales: 0 plates
- 8 to 12 sales: 2 plates
- 13 to 25 sales: 4 plates
- 26 to 49 sales: 6 plates
- 50 to 100 sales: 12 plates
- 101 to 150 sales: 20 plates
- 151 or more: as many as requested
Dealer License Cost
A North Dakota Dealer License costs $25 to $100 a year, by license type, and the first dealer plate is included. Every other fee on this page is in the table.
| Fee | Amount |
|---|---|
| New or Used Motor Vehicle Dealer License | $100 a year, includes 1 plate |
| Trailer Dealer License | $30 a year, includes 1 plate |
| Motor-Powered Recreational (MPR) Vehicle Dealer License | $25 a year, includes 1 plate |
| Mobile Home and Manufactured Home Dealer License | $35 a year, includes 1 plate |
| Low Speed Vehicle Dealer plateOptional; no license issued | $20 |
| Initial inspection feeNonrefundable, first application only | $100 New or Used Motor Vehicle Dealer, or Trailer Dealer$50 MPR DealerNone listed for a Mobile Home Dealer |
| Additional dealer plates | $20 each, New or Used Motor Vehicle Dealer$10 each, Trailer, MPR, or Mobile Home Dealer$20 each, Low Speed Vehicle Dealer |
| Replacement dealer plate | $5 each |
| Dealer Bond | $150 a year, New Motor Vehicle Dealer, $25,000 bond$250 a year, Used Motor Vehicle Dealer, $25,000 bond$100 a year, Trailer Dealer, $10,000 bondAll 3 need a credit check$10,000 bond for an MPR Dealer and $50,000 for a Mobile Home Dealer, priced by the surety |
| Garage liability insuranceNew and Used Motor Vehicle Dealers only | Priced by your agent |
| Secondary dealer lot registration | $100 |
| Show and Sale PermitUp to 7 days | $25 North Dakota-licensed Dealer$100 out-of-state Dealer |
| Late renewal feePostmarked after December 31, any license type | $100 |
Dealer License Renewal
A North Dakota Dealer License expires December 31 of each year regardless of when it was issued, and so does every dealer plate. Dealer Services mails a renewal application near the end of the year, usually in early November. The renewal fee is the same as the annual license fee.
A renewal postmarked after December 31 adds a $100 late fee, for every license type.
Common Questions
Can you get a North Dakota Dealer License with a felony?
Yes. North Dakota's dealer licensing chapters name no felony, misdemeanor, or conviction as a ground to deny, suspend, or revoke a Dealer License (§39-22-04). The application asks no conviction question. There is no waiting period and nothing to disclose. State law also bars disqualifying anyone from a licensed occupation solely for a prior conviction (§12.1-33-02.1).
Can you get a Dealer License in North Dakota without a lot?
It depends on the license type. A New, Used, or Motor-Powered Recreational Vehicle Dealer needs a place of business that isn't a residence. A New or Used Dealer's building and lot together must total 2,500 square feet. The Trailer Dealer and Mobile Home and Manufactured Home Dealer chapters set no lot size or residence rule. Details under Office.
How many cars can you sell in North Dakota without a Dealer License?
North Dakota publishes no set number. The test is whether you are engaged in the business of buying, selling, or exchanging vehicles (§39-22-14). If you are, or you hold yourself out to the public as doing so, a Dealer License is required.
Does North Dakota have a wholesale Dealer License?
No. North Dakota has no separate wholesale Dealer License; its wholesale dealer chapter is repealed. A wholesale or auction operator holds the New or Used Motor Vehicle Dealer License, and an auto auction operator must hold one (§39-22-23).
Do I need a class or exam for a North Dakota Dealer License?
No. North Dakota requires no pre-license class and has no Dealer exam, for any license type. The Department of Transportation runs a free, voluntary dealer training class, plus a separate class for MPR Dealers. The dates are in its Dealer Dashboard newsletter.
How long does a North Dakota Dealer License take?
No North Dakota law sets a deadline for the department to decide. Its own guidance is to allow 4 to 6 weeks for the location inspection, which happens before the license is issued. Details under Inspection.
Do I need a business bank account?
No. No North Dakota dealer statute, rule, the Dealer Handbook, or the application asks for a business bank account or an account number. The application asks for one number: the business's federal employer identification number, or an individual's SSN.
Do salespeople need a license in North Dakota?
No. North Dakota has no salesperson license. A salesperson sells for the licensed Motor Vehicle Dealer who employs them, and the Dealer's license covers those sales (§39-22-04).
Support
Dealer Services at the Motor Vehicle Division handles license applications, renewals, and dealer requirements. Consumer Services answers title and paperwork questions at a separate number.
| Contact | Detail |
|---|---|
| Department | North Dakota Department of Transportation, Motor Vehicle Division — Dealer Services |
| Phone | (701) 328-1285 Dealer Services(701) 328-2725 Consumer Services, for title paperwork |
| [email protected] | |
| Address | Motor Vehicle Division, Dealer Services608 E. Boulevard Ave.Bismarck, ND 58505-0780 |
Additional sources (5)
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.
- N.D.C.C. §39-01-01, definitions (PDF) — “Dealer” means every person, partnership, corporation, or limited liability company engaged in the business
- N.D.C.C. Ch. 39-22.1, Trailer Dealers (PDF) — the $10,000 bond and its waiver, the primary established place of business, the $30 fee
- N.D.C.C. Ch. 39-18, Mobile Home and Manufactured Home Dealers (PDF) — the $50,000 bond, the permanent office and service department, the $35 fee
- N.D.C.C. Ch. 39-22.2, Wholesale Motor Vehicle Dealers' Licensing (PDF) — the chapter's current text: repealed
- N.D. Admin. Code §37-12-01-01 (PDF) — the one dealer-licensing rule section
