How to get a Minnesota Motor Vehicle Dealer License

 How do I get a motor vehicle dealer license in Minnesota? 

Step 1: Determine which Minnesota motor vehicle dealer license you need. 

All Minnesota motor vehicle dealer licenses have the same application process. Your dealer license type will determine which application you need. For more clarification on the license types, you can refer to the Minnesota Dealer License Types list to determine the kind of license you'll need. 

• Auction Vehicle Dealer
• Broker Vehicle Dealer 
• Dealer of Motorized Bicycle, Boat, and Snowmobile Trailers
• Lessor 
• Limited Use Vehicles
• Salvage Pool Vehicle
• Scrap Metal Dealer
• Used Part Dealer
• Used Vehicle Dealer
• Motor Vehicle Wholesaler

Step 2: Verify your dealership meets commercial location requirements. 

Your dealership must have a permanent enclosed building suitable for commercial use that's built on a permanent foundation and connected to sewer and water facilities that comply with local and state zoning and building laws. The state recommends, but does not require, that you submit photos of your commercial building, designated display lot, and exterior sign with your application. 

Step 3: Purchase limited liability insurance for your dealership. 

You must have limited liability insurance for all vehicles in your dealership in the following minimum amounts.

• $30,000 per person 
• $60,000 per accident
• $10,000 property damage
• $25,000 per person/$50,000 per accident under and uninsured motorist liability protection
• $20,000 medical personal injury protection 
• $25,000 non-medical personal injury protection

Step 4: Purchase your Minnesota motor vehicle dealer surety bond. 

The Minnesota Department of Public Safety requires motor vehicle dealers file a $50,000 Minnesota motor vehicle dealer surety bond to protect the state and vehicle purchasers from monetary loss resulting from a dealer's failure to fulfill their professional obligations as required by state law.

You can apply for your Minnesota motor vehicle dealer bond online 24/7. Your personal surety bond cost will be provided after a quick application review based on your license type and its required bond amount. Your official Minnesota motor vehicle dealer bond will be emailed to you once your order is processed.

If you're a boat, snowmobile, small horse trailer, motorized bicycle or moped dealer, you need a $5,000 surety bond that costs $100 annually for all license applicants.

Step 5: Gather additional required supporting documents. 

All dealerships must complete a Verification of Property Lease (Form PS2407-09). If your business is a franchise, you must also complete a Franchise Agreement (Form PS2404-11). 

Step 6: Apply for your motor vehicle dealer license and pay the fees. 

Fill out your physical Motor Vehicle Dealer License Application (Form PS2401-15) and mail it with all supporting documents, photographs, and fees to the Minnesota Department of Public Safety along with your $250 dealer licensing fee. If you're a scrap metal dealer, wholesale dealer, or used motor vehicle dealer, the licensing fee is $275. 

Minnesota Department of Public Safety
445 Minnesota Street
Suite 186
Saint Paul MN 55101-5186

The Minnesota Department of Public Safety will process your application in 3 to 5 days. Once issued, your motor vehicle dealer license will be valid for 1 year from the month it was issued.