How to get a dealer license in North Dakota

A person may not engage in the business of buying, selling, or exchanging motor vehicles, or advertise or hold out to the public as doing so for resale, without a current dealer license (NDCC 39-22-14(1)). A dealer includes anyone who buys motor vehicles for resale (NDCC 39-01-01(15)). We found no numeric sales threshold in the law.

• Used motor vehicle dealer: Selling used motor vehicles, plus trailers (except travel trailers), motorcycles, UTVs, ATVs, mopeds, unconventional vehicles, snowmobiles, and low speed vehicles.
• New motor vehicle dealer: Dealers with a manufacturer or distributor franchise agreement. They may sell those new vehicles and everything a used dealer may sell.
• Motor-powered recreational (MPR) vehicle dealer: Selling off-highway vehicles (UTVs, ATVs, mopeds, dirt bikes, snowmobiles), unconventional vehicles, motorcycles, and low speed vehicles. The bond is $10,000.
• Trailer dealer: Selling trailers (except travel trailers) and low speed vehicles. The bond is $10,000.
• Mobile home dealer (Motor Home License): Selling mobile and manufactured homes, motor homes, and travel trailers, including horse trailers with living quarters. The bond is $50,000.
• Low speed dealer plate: Selling only low speed vehicles. No dealer license is required, only a $20 dealer plate.
• Display lot operator permit: A person who is not a dealer and runs a lot where owners display their own vehicles for sale. It needs a $50 annual permit and $300,000 of liability insurance (NDCC 39-22-22).

Surety bond. New and used motor vehicle dealers must file a continuous $25,000 surety bond from a surety licensed in North Dakota before the license is issued (NDCC 39-22-05), on form SFN 2933. The license is issued in the business name on the bond, and it is suspended if the bond is canceled. MPR and trailer dealers need a $10,000 bond, and mobile home dealers need $50,000 (Dealer Handbook).

Insurance. Before licensing, show proof of a continuous liability insurance policy for the business that includes general, business automobile, and sales, repair, or service operations liability (NDCC 39-22-19). New and used dealers report it on a Certificate of Garage Liability Insurance (SFN 2932). If coverage lapses, you must return your license and dealer plates.

Place of business. You need an established place of business next to your primary display lot. It must be a permanent enclosed building of at least 250 square feet, owned, rented, or leased, and not a residence, tent, or temporary stand (NDCC 39-22-15). The building and primary display lot together must cover at least 2,500 square feet on property zoned for the use. The office must be heated, lighted, and equipped with standard office equipment, and all business records must be kept there. You need a publicly listed phone in the dealership's name, must be open to the public during normal business hours, and need a sign of at least 32 square feet with the dealership name in letters at least 10 inches high, clearly visible from the street. A secondary lot must be within 5 miles, have proper signs, and pass an inspection (SFN 2932).

Background check. We found no fingerprint or criminal history check requirement in NDCC 39-22 or on SFN 2932. The director may deny a license for a material misstatement on the application, willful failure to follow the dealer laws or rules, willful violation of laws on selling or financing vehicles, or violation of odometer or VIN alteration laws (NDCC 39-22-04).

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

1. Find a location zoned for vehicle sales with a permanent building of at least 250 square feet next to a display lot, at least 2,500 square feet in total.
2. Put up a sign of at least 32 square feet with 10-inch letters, get a publicly listed business phone, and set normal business hours.
3. Buy a continuous $25,000 motor vehicle dealer bond on form SFN 2933.
4. Get garage liability insurance and have it reported on a Certificate of Garage Liability Insurance.
5. Complete the dealer license application (SFN 2932) and send it with the bond, proof of insurance, the $100 license fee, the $100 inspection fee, and $20 for each additional plate.
6. Pass the NDDOT inspection of your location, which can take 4 to 6 weeks.
7. Renew by December 31 each year, after making at least 8 retail sales in the year.

Official forms:

• Application for New/Used/Motor-Powered Recreational (MPR)/Trailer/Mobile Home Vehicle Dealer's License (SFN 2932)
• Motor Vehicle Dealer Bond (SFN 2933)
• Mobile Home and Manufactured Home Dealer Bond (SFN 2935)
• Trailer Dealer Bond (SFN 2898)
• Motor-powered Recreational Vehicle Dealer Bond (SFN 3003)
• Show And Sale Permit Application (SFN 54301)
• Dealership Change of Information (SFN 62193)

No. A new or used dealer needs a permanent building next to a primary display lot, with at least 2,500 square feet combined (NDCC 39-22-15), and NDDOT's dealer pages list no wholesale-only license.

North Dakota requires anyone who runs a wholesale or retail auto auction to be a licensed motor vehicle dealer (NDCC 39-22-23). Dealer-only auctions sell only to licensed dealers, and AuctionACCESS (auctionaccess.com) restricts membership to licensed, credentialed vehicle dealers and their authorized representatives.

Dealer licenses and dealer plates expire December 31 each year. NDDOT mails a renewal application in early November. Return it signed with the $100 renewal fee, which covers one plate, plus $20 for each extra plate, postmarked by December 31 to avoid a $100 late fee. You must have made at least 8 retail motor vehicle sales in the previous year, and MVD must have proof of insurance for the coming year. MVD may reduce your plate count if sales drop (NDCC 39-22-18; Dealer Handbook).

This is general information, not legal advice. Rules and fees change, so confirm the details with the North Dakota Department of Transportation (NDDOT), Motor Vehicle Division, Dealer Services 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 North Dakota.