How to get a dealer license in Kansas

K.S.A. 8-2404 bars any vehicle dealer from doing business in Kansas without a license. The Department of Revenue says a vehicle dealer is a person who buys a vehicle intending to sell it for a profit, or who sells 5 or more vehicles in a calendar year. Under K.S.A. 8-2404(r), displaying used vehicles on a lot or showroom, advertising them or regularly soliciting buyers counts as being in the business. A person not otherwise required to be licensed may still sell their own vehicle as an isolated and occasional sale (K.S.A. 8-2404(v)).

• New/used vehicle dealer: Dealers with a franchise agreement to sell new vehicles for a manufacturer or distributor. They file a franchise certification (Form D-100), and one $75 fee covers both new and used sales.
• Used vehicle dealer: Anyone actively engaged in the business of buying, selling or exchanging used vehicles.
• Wholesale vehicle dealer: Businesses that buy vehicles to resell to other dealers. They still need an inspected place of business.
• Auction motor vehicle dealer: Auctions that sell vehicles owned by licensed dealers to licensed dealers.
• Salvage vehicle dealer: Businesses that deal in used vehicles mainly to sell used parts or to dismantle them. They need a KDOT Certificate of Compliance (Form D-35).
• Used RV broker: Licensees who broker used recreational vehicles that another person has titled and owned for at least 45 days, or repossessed RVs. Brokering other vehicles is not allowed.
• Rebuilder, vehicle recycler, salvage pool, vehicle crusher or scrap metal recycler: Businesses that rebuild salvage vehicles for sale, or that recycle, store, crush or scrap vehicles. Each license is $75.
• Lending agency or insurance company: Lenders that finance vehicle purchases ($50) and insurance companies that write or service vehicle insurance ($75). Lending agencies need no established place of business or bond.
• Manufactured home dealer: Dealers of new or used manufactured homes, who apply on Form D-17B. They are exempt from the dealer bond.
• Vehicle salesperson: Anyone who sells vehicles for a dealer or manufacturer. The license costs $25, requires a written test and expires June 30 each year.

Surety bond. K.S.A. 8-2404(i) requires new and used vehicle dealers to keep a $50,000 corporate surety bond from a company authorized in Kansas, payable to the state for any retail or wholesale buyer or seller harmed by violations. Instead, a dealer may deposit at least $50,000 in cash, U.S. or Kansas bonds, or bank certificates of deposit with the State Treasurer (K.S.A. 8-2404(j)). The current bond form is D-30 (4-21). Form D-17a says manufacturers, distributors, factory branches, lending agencies and manufactured home dealers are exempt. Form D-17a explains whose name goes on the bond for a corporation, partnership or sole proprietor. The surety may cancel the bond with 30 days' written notice to the dealer and the Division of Vehicles (Form D-30). The forms page still lists an older bond form (D-20B, 4-03), and the 2018 dealer handbook shows the old amount on Form D-20. Use Form D-30, which matches the statute.

Insurance. Dealers must insure the place of business and all inventory, and public liability and property damage coverage is mandatory. The insurer must send a certificate of insurance in the business name and address before the license is issued, and coverage must not lapse while licensed. The Department of Revenue does not publish minimum limits.

Place of business. An established place of business is a building or structure, not used in any part as a residence, owned or leased, used as an office to receive mail, keep records and conduct business, with an operable telephone listed in the business name (K.S.A. 8-2401(aa)). The Division of Vehicles inspects and approves it before licensing, free for the first inspection and $30 for each extra one (K.S.A. 8-2404). Dealers must own or lease enough lot space to display at least as many vehicles as they have dealer plates (K.S.A. 8-2404(l)). A sign with letters at least 10 inches high, visible from the street, is required unless local zoning limits it. The site needs zoning approval for the license type, and the county treasurer must certify that personal property taxes are paid.

Background check. The application asks whether the applicant was convicted of a felony in the past five years (K.S.A. 8-2410(a)(21)) and whether any dealer license was denied, suspended or revoked. Applicants need a Kansas tax clearance certificate for each owner and the business, and sole proprietors and partnerships need three credit references. The Department of Revenue does not describe a fingerprint check.

Pre-license education. Required. Approved courses and details.

1. Register for Kansas sales tax under the exact business name you will use on the dealer license.
2. Find a place of business that is not a residence, with lot space, a phone listed in the business name and a sign with 10-inch letters, and get zoning approval for your license type.
3. Get a tax clearance certificate for each owner and the business, and have the county treasurer certify that personal property taxes are paid.
4. Get a $50,000 surety bond on Form D-30, or deposit $50,000 with the State Treasurer, and have your insurer send a certificate of insurance.
5. Complete Form D-17a with a photo of your location and sign, credit references or corporate papers, and the license and plate fees, and mail it to Dealer Licensing.
6. Pass the division's inspection of the place of business.
7. Attend the dealer training class you are scheduled for. The license is issued when you finish it.

Official forms:

• Application for a Vehicle Dealer License (D-17A)
• Vehicle Dealer Bond ($50,000), D-30
• Vehicle Dealer and Manufacturers Licensing Act Certificate of Deposit (D-19)
• Franchise Certification (new vehicle dealers), D-100
• Application for Location Change or Supplemental Location (D-12A)
• KDOT Certificate of Compliance (salvage vehicle dealers), D-35
• Kansas Dealer Handbook

No. New and used dealers, wholesalers, brokers, salvage dealers, auction dealers, recyclers, rebuilders and similar licensees must keep an established place of business that the division inspects (K.S.A. 8-2404(k)). They must also own or lease lot space for at least as many vehicles as they have dealer plates. The only exception in the definition is a dealer who earns at least half of their income from farming and deals only in vehicles and equipment that do not need registration, who may use the farm residence.

Under K.S.A. 8-2401(bb), a Kansas auction motor vehicle dealer sells only vehicles owned by licensed dealers to licensed dealers, so buying at those auctions takes a dealer license. AuctionACCESS, which credentials buyers at over 400 auction marketplaces in North America, limits membership to licensed vehicle dealers and their authorized representatives.

All licenses except salesperson licenses expire December 31 each year. The Department of Revenue emails renewals in early November, renewals are done through the Dealer Portal, and each renewal needs a new tax clearance. Form D-17a says dealers need 5 sales per plate type to keep or increase their number of dealer plates. The 2018 dealer handbook says a license not renewed by December 31 expires and needs a new application, while K.S.A. 8-2404(d) treats renewals received after February 15 as new applications. Salesperson licenses expire June 30.

This is general information, not legal advice. Rules and fees change, so confirm the details with the Kansas Department of Revenue, Division of Vehicles, Dealer Licensing Bureau before you apply. Last verified October 20, 2026.

Planning the business side too? Read how to start a car dealership. Used cars you offer for sale need an FTC Buyers Guide in the window. Selling your own car instead? See how to sell a car in Kansas.