How to get a dealer license in Oklahoma

47 O.S. § 581 defines a used motor vehicle dealer as anyone who, for commission or with intent to make a profit, sells, brokers, exchanges, rents with option to purchase, or offers or attempts to negotiate a sale of used motor vehicles, or who is engaged wholly or in part in the business of selling used motor vehicles, whether or not they own them. Oklahoma sets no minimum number of sales. The definition excludes selling your own vehicles in a liquidation, but that exclusion does not cover anyone whose business is buying, selling or renting vehicles. Dealing without a license is a misdemeanor with a fine of up to $500 for a first offense and up to $1,000 after that, and each day is a separate offense (47 O.S. § 583(A)).

• Used motor vehicle dealer: Sells used vehicles to the public from an approved location with a display area.
• Wholesale used motor vehicle dealer: Sells used vehicles only to licensed used motor vehicle dealers. Must be an Oklahoma resident, make it their principal business, and have an approved office, sign and phone.
• Used motor vehicle dealer auction: Runs used vehicle auctions. Needs a $50,000 bond, or $25,000 with proof of at least $50,000 in check and title insurance.
• Non-auction consignment dealer: Sells vehicles on consignment outside an auction. Needs a $50,000 bond when projected gross sales are $500,000 or more.
• Secondary location: An extra lot for a licensed used dealer. Needs its own bond and a $200 license.
• Used dealer license for a franchised new-car dealer: A new-car dealer licensed by the Oklahoma Motor Vehicle Commission that also sells used vehicles. The used license costs $200.
• New motor vehicle dealer (franchised): Sells new vehicles under a manufacturer franchise. Licensed by the separate Oklahoma Motor Vehicle Commission, not OUMVDMHC.
• Rebuilder certificate: Dealers who rebuild salvage vehicles. Requires an extra $15,000 bond.
• Automotive dismantler and parts recycler: Businesses that dismantle vehicles and sell used parts (47 O.S. § 591.1 and following).
• Used motor vehicle salesperson: Each person who sells vehicles for a licensed dealer must hold a certificate of registration. The fee is $50.

Surety bond. 47 O.S. § 583(E) requires a $25,000 bond for a used motor vehicle dealer and for a wholesale dealer. A dealer auction needs $50,000, or $25,000 with proof of at least $50,000 in check and title insurance. A non-auction consignment dealer with projected gross sales of $500,000 or more needs $50,000, and a rebuilder certificate adds a $15,000 bond. Each secondary lot needs its own bond. Bonds run through December 31 of odd-numbered years to match the two-year license, and a one-year bond is allowed if the two-year bond would cost more than $2,000 (OAC 765:4-1-3). The surety can cancel on 30 days notice, and a lapse automatically revokes the license.

Insurance. Liability insurance with at least a $25,000 single limit covering all vehicles offered for sale or used for demonstration (47 O.S. § 583(F); OAC 765:10-1-5). Proof is filed on Form UD-7, the certificate of insurance. A lapse in insurance automatically revokes the license, and reinstatement after an insurance lapse costs $200.

Place of business. OAC 765:10-1-3 requires a retail display area, public parking, and an office where records are kept, in a permanent building or a separate room used only for the business, with a public restroom. The application instructions say the structure must be separate from any residence or other business. Occupied homes, vacant lots, tents and temporary stands do not qualify, and the site must meet local zoning (send a zoning letter or permit). The sign must be at least 32 square feet unless zoning allows only a smaller one, permanently attached, with letters at least 6 inches tall, and visible from the nearest roadway; banners and portable signs do not count. A business phone listed with directory assistance is required, and a cell phone is allowed. The applicant sends photos of the office, lot and sign, and a Commission inspector inspects the location before the license is issued.

Background check. Each applicant submits an Oklahoma State Bureau of Investigation (OSBI) report with name-based, sex offender and violent offender searches, plus a Personal History Questionnaire. Applicants with a felony must send the Judgment and Sentence and appear before the Board, and this also applies to out-of-state or federal felonies within the past 20 years (OAC 765:4-1-4). The application also asks for a copy of an Oklahoma driver license and a financial statement, and inadequate assets can lead to denial.

Pre-license education. Required (3.5 hours). Approved courses and details.

1. Call the Commission to get your business name approved; it must reflect the business, such as 'auto sales,' 'motors' or 'used cars.'
2. Set up a location that meets OAC 765:10-1-3: a display area, an office in a permanent building with a public restroom, a 32 square foot sign, a listed business phone and zoning approval.
3. Buy a $25,000 used dealer bond and liability insurance with at least a $25,000 single limit, shown on Form UD-7.
4. Get an OSBI background report with name-based, sex offender and violent offender searches for every applicant.
5. Apply through the Commission's online platform or with the Used Motor Vehicle Dealers Application packet (application, Personal History Questionnaire, financial statement, bond, UD-7 and photos), and pay the $600 fee at least 11 days before the monthly Board meeting.
6. Have one owner, partner, member or officer attend the free Education Program, held 9:00 a.m. to 12:30 p.m. on the Monday before the monthly Commission meeting.
7. Pass the location inspection by a Commission inspector after the Board meets.
8. Register each salesperson for $50, and apply to Service Oklahoma for dealer plates on Form 795-A once the license is confirmed.

Official forms:

• Used Motor Vehicle Dealers Application (instructions, application, Personal History Questionnaire, financial statement, bond and UD-7)
• Used Motor Vehicle Dealers Bond
• Certificate of Insurance, used dealer (UD-7)
• Financial Statement
• Used Motor Vehicle Salespersons Application
• Wholesale Dealers Bond
• Certificate of Insurance, wholesale dealer
• Used Dealer License Plate Application (Service Oklahoma), 795-A

Not for retail sales, because a used motor vehicle dealer must have a display area. A wholesale used motor vehicle dealer, who may sell only to licensed used dealers, needs an approved location with an office, sign and phone, and the wholesale rules (OAC 765:20) do not list a display lot.

Dealer-only auctions require a dealer license to buy, and Oklahoma licenses used motor vehicle dealer auctions separately. AuctionACCESS (auctionaccess.com), which provides credentialing for over 400 auction marketplaces and online channels across North America, limits membership to licensed vehicle dealers and their authorized representatives.

Licenses run for two years and expire December 31 of each odd-numbered year. Renewals are due November 1, and renewed licenses are issued by January 10 (47 O.S. § 583(B); OAC 765:10-1-7). The renewal fee is $300, and the bond must cover the new period. Dealer plates need a renewal decal each year for $21 per plate, and late renewals add per-plate late fees.

This is general information, not legal advice. Rules and fees change, so confirm the details with the Oklahoma Used Motor Vehicle, Dismantler, and Manufactured Housing Commission 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 Oklahoma.