How to get a dealer license in Pennsylvania

You need a dealer license from the State Board to be in the business of buying, selling or exchanging vehicles. The Board of Vehicles Act exempts a person who buys, sells or exchanges fewer than five vehicles in a calendar year if the person paid sales tax when buying them, and the Board says a license is needed by anyone who sells more than 4 vehicles a year.

• New vehicle dealer license: Dealers selling new vehicles. They need a written franchise from a manufacturer or distributor for each line-make sold at the licensed address.
• Dealer branch lot license: An added sales location. It must meet the main lot facility rules unless it is used only for storage. The application fee is $190.
• Auction license (wholesale): Wholesale vehicle auctions, where buyers must be licensed dealers.
• Auction license (public or retail): Vehicle auctions open to the public.
• Salesperson license: People who sell vehicles for a licensed Pennsylvania dealer.
• Manufacturer, distributor and representative licenses: Vehicle makers, distributors and the people who represent them to Pennsylvania dealers.
• Out-of-State RV Dealer Registration: RV dealers in Delaware, New York or West Virginia who want to sell at a Pennsylvania event.
• Miscellaneous motor vehicle business registration (PennDOT): Repair and towing, vehicle salvage, transporter, financier, collector-repossessor and watercraft trailer businesses. These register with PennDOT, not the Board.

Surety bond. PennDOT requires a $20,000 bond on Form MV-375 for each place of business before it issues dealer plates (75 Pa.C.S. § 1335). We found no bond for the Board dealer license itself. Dealers who also want to issue temporary plates as PennDOT agents need a separate $30,000 bond (PUB 459).

Insurance. Before PennDOT issues dealer plates, you must show liability insurance that covers as many vehicles as the plates you request (67 Pa. Code Chapter 53, as cited on Form MV-349). Accepted proof includes an insurance ID card, the policy declarations page, a signed binder, or a signed Pennsylvania Automobile Insurance Plan application.

Place of business. You need a permanent enclosed building that you own or rent, separated from other businesses and homes by walls or partitions. An office trailer with skirting on a permanent foundation can qualify. You need a private office for books and records, separate from display and repair areas, and a business phone line in the building listed in the dealership's name. The display area must hold at least five vehicles with doors open, and an outdoor display area must be graded, surfaced and lit if open in the evening. You also need a sign visible to the public, posted business hours, a certificate of occupancy and full zoning compliance (49 Pa. Code § 19.18).

Background check. PennDOT requires an original criminal history record from the Pennsylvania State Police (Form SP 4-164) for each owner, partner or corporate officer, plus a check from the home state of anyone who lives outside Pennsylvania. Form MV-349 also asks about felony and misdemeanor convictions and past sanctions.

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

1. Set up a place of business that meets 49 Pa. Code § 19.18, with an enclosed building, a private office, a display area for five vehicles, a sign and a business phone.
2. Apply for the dealer license with the State Board through the Pennsylvania Licensing System (PALS) and pay the $190 application fee.
3. Get an original criminal history record (Form SP 4-164) from the Pennsylvania State Police for each owner, partner or corporate officer.
4. Buy a $20,000 dealer bond on PennDOT Form MV-375 for each place of business.
5. Get liability insurance that covers as many vehicles as the dealer plates you plan to request.
6. After the Board issues your license, send Form MV-349 to the PennDOT Bureau of Motor Vehicles with the bond, criminal record, photos, IDs, deed or lease, proof of insurance and fees to get your dealer identification number and plates.
7. If you want to issue temporary plates, meet the agent services requirements in PUB 459 and PUB 457, including a separate $30,000 bond.

Official forms:

• Dealer license application (online in PALS)
• Application for Vehicle Dealer Registration Plates for Dealers Licensed by Department of State (MV-349)
• Manufacturer/Dealer/Full Agent/Card Agent/Messenger Service/Salvor Bond (MV-375)
• Requirements on Becoming a Dealer (PUB 459)
• Bureau of Motor Vehicles Schedule of Fees (MV-70S)
• Pennsylvania State Police criminal history record request (SP 4-164)

No. Pennsylvania dealers must keep an established place of business with a permanent enclosed building, a private office and a display area for at least five vehicles, and the Board says a dealer license requires a physical facility.

Pennsylvania law lets only licensed dealers, plus some PennDOT-registered vehicle businesses, buy at wholesale vehicle auctions, so you need a dealer license to buy there. Many dealer auctions use AuctionACCESS (auctionaccess.com), which limits membership to licensed vehicle dealers and their authorized representatives.

Board dealer licenses renew every two years for $274. The current period runs June 1, 2025 to May 31, 2027. PennDOT dealer plates renew separately for one or two years.

This is general information, not legal advice. Rules and fees change, so confirm the details with the Pennsylvania State Board of Vehicle Manufacturers, Dealers and Salespersons 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 Pennsylvania.