How to get a dealer license in Montana

MCA 61-4-101(1) says a person may not 'engage in the business of buying, selling, exchanging, accepting on consignment, or acting as a broker of' a vehicle 'that is not registered in the person's name' without a dealer license from the department. This covers motor vehicles, trailers, motorcycles, boats, snowmobiles, off-highway vehicles and special mobile equipment. No minimum number of sales is set. MVD's 2026 buying and selling guide says vehicles 'can be sold only through a licensed dealer or by the person whose name is on the title.' MCA 61-4-108 exempts financial institutions selling repossessed collateral, auctioneers who mainly sell property other than motor vehicles, and licensed real estate brokers dealing in mobile homes.

• New (franchise) dealer: Dealers with a written franchise or sales agreement who sell the new vehicles it covers, plus used vehicles. They must have a bona fide service department.
• Wholesale dealer: Businesses that sell used vehicles only to Montana dealers, auto auctions and other wholesalers. They get no dealer plates and cannot issue temporary registration permits.
• Auto auction: Auctions that sell consigned used vehicles to the highest bidder when all bidders are licensed dealers, wholesalers or wrecking facilities. They may not sell at retail and get no dealer plates.
• Broker: People who negotiate a purchase, sale or exchange for a client without storing, displaying or taking ownership of the vehicle. Brokers get no dealer or demonstrator plates and cannot issue temporary registration permits.
• Manufactured home dealer: Dealers selling new manufactured homes under a franchise agreement and used manufactured homes. They get no dealer plates.
• Dealers limited to motorcycles, boats, snowmobiles or off-highway vehicles: New or used dealers whose business is restricted to motorcycles or quadricycles file a $15,000 bond. Those restricted to motorboats, personal watercraft, snowmobiles or off-highway vehicles file a $5,000 bond.

Surety bond. A continuous $50,000 dealer surety bond for new and used dealers of cars, trucks, vans, buses, motor homes, trailers and special mobile equipment, for manufactured home dealers, and for wholesale, auto auction and broker licenses (MCA 61-4-101(9); MV22). Dealers restricted to street legal motorcycles or quadricycles file $15,000. Dealers restricted to snowmobiles, boats, personal watercraft, off-highway motorcycles or quadricycle-like vehicles file $5,000. The bond must be in the full business name with the physical address, list the license type, show the State of Montana as certificate holder, and be renewed annually.

Insurance. General liability insurance in the full business name with the physical address, naming the State of Montana (P.O. Box 201431, Helena) as certificate holder, for a minimum of one year. It must cover vehicles with dealer or demonstrator plates, and boats, snowmobiles or off-highway vehicles with a dealer identification card, when they are used for demonstration or by customers in the regular course of business (MCA 61-4-101(6)(d); MV22). Manufactured home dealers are exempt. A liability insurance certificate is also filed with each renewal.

Place of business. MV22 requires a permanent non-residential building where sales are made and records are kept, plus a lot where vehicles are displayed. The building cannot be in a home, and no more than three other dealers may share it or the location. Display lots must be within 200 feet of each other and within 1,000 feet of the records building (MCA 61-4-101(6)(e)). The sign must show the business name and that vehicles are for sale, in letters at least 6 inches high, readable from the major avenue of traffic at 150 feet. Office hours must be posted, and the phone must be listed with directory assistance in the dealership's name, or a dealer cell number posted at the business. You also need written zoning verification, a computer, printer and internet access for electronic temporary registration permits, and a site inspection on form MV105 by the Montana Highway Patrol, local law enforcement or a DOJ compliance specialist.

Background check. The MV25 application asks each owner, corporate officer, managing member or manager for date of birth, Social Security number and felony history. It also asks about arrests and charges, flooring delinquencies, Consumer Protection investigations, bankruptcies, lawsuits in the past 10 years and residences for the past 5 years. MVD reviews state and federal history records for convictions or pending charges. It may refuse a license if an applicant's criminal record or financial or other activities pose a threat to dealer regulation or the public interest (MCA 61-4-101(5)). We found no fingerprint requirement.

Pre-license education. Montana does not require a pre-license course for this license.

1. Register the business and get a federal EIN or Montana corporate ID, which the MV25 application requires.
2. Set up a permanent nonresidential building with a display lot within 1,000 feet, a sign with 6-inch letters, posted hours and a listed phone.
3. Get written zoning verification from the local land use or zoning board.
4. Send the Dealer License Application (MV25) to the Vehicle Services Bureau by email, fax or mail, and wait for MVD's investigation and fee notice.
5. Have the site inspected on form MV105 by the Montana Highway Patrol, local law enforcement or a DOJ compliance specialist.
6. Get a continuous $50,000 dealer surety bond and general liability insurance that name the State of Montana as certificate holder.
7. Send the MV105, bond, insurance certificate, zoning letter and fees by check or money order to the Vehicle Services Bureau.

Official forms:

• General Dealer License Information and Requirements (MV22)
• Dealer License Application (MV25)
• Dealer Inspection Form (MV105)
• Application for Dealer License Renewal (MV25R)

A retail used dealer needs a display lot within 1,000 feet of its permanent nonresidential building. A broker, who may not store or display vehicles, needs a permanent nonresidential building for its records but no display lot.

Under MCA 61-4-101(2)(e) and 61-4-120, a Montana auto auction sells used vehicles only when all bidders are licensed dealers, wholesalers or wrecking facilities. It may not sell at retail, so a dealer license is needed to buy there. AuctionACCESS (auctionaccess.com), which provides credentials for over 400 auction marketplaces and online channels across North America, limits membership to licensed vehicle dealers and their authorized representatives.

Each dealer is assigned an expiration quarter and renews every year. The annual report and renewal application (MV25R), the $30 fee and a liability insurance certificate are due by the 15th of the month before the expiration month (MCA 61-4-124). Used dealers who cannot certify 12 retail sales pay an extra $25, and so do wholesalers with fewer than 12 wholesale sales. If the renewal is late, dealer plate and temporary permit privileges are suspended and new plates must be bought.

This is general information, not legal advice. Rules and fees change, so confirm the details with the Montana Department of Justice, Motor Vehicle Division (MVD), Vehicle Services 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 Montana.