The North Dakota Department of Transportation issues all new dealer licenses for the state. If you wish to become a North Dakota car dealer, follow these steps.
Not sure if you need a dealer license? Check out this post selling cars without a license.
How to get a North Dakota Dealer License
Step #1: Establish a place of business
Your place of business must meet the following requirements:
- Display lot of at least 2,500 sq. ft.
- Building of at least 250 sq. ft.
- Business sign measuring a minimum of 32 sq. ft. in size, clearly visible from the road
- Installation of business telephone
- Zoning approval form
Your location does not mean a residence, tent, temporary stand, or other temporary quarters.
Your location will need to be inspected.
For questions about your location, contact the North Dakota Department of Transportation Dealer Services at 701-328-2725
Step #2: Complete the North Dakota Application for Dealer License
Step #3: Purchase North Dakota Motor Vehicle Dealer Bond
Every dealer must have a dealer bond.
The bond amount is set at $25,000.
The price you pay for your bond is a percentage of the bond amount. Those with good credit will pay 1-4% of the bond amount ($250 – $1000) and those with bad credit will pay 5-15% ($1250 – $3750).
You only need to pay for your bond one-time, not monthly.
Step #4: Other requirements
For a list of all requirements, view the New and Used Motor Vehicle Dealer Licensing and Bonding page.
Requirements may include:
- Franchise agreement
- Garage liability insurance
Step #5: Pay fees
- $100 license fee
- $100 initial inspection fee
- $20 for each additional dealer plate (license comes with 1 plate)
Checks or money orders can be made to the North Dakota Department of Transportation.
Step #6: Submit
Send your application to the North Dakota Department of Transportation at the address below:
Department of Transportation
608 East Boulevard Avenue
Bismark, ND 58505-0700
North Dakota Motor Vehicle Dealer Rules
Yes, there are rules that all North Dakota motor vehicle dealers must follow.
- If you establish a second lot location, it must be within 5 miles of your established place of business
- No motor vehicles can be sold on Sunday
- License renewals must be made before December 31st of each year to maintain a valid motor vehicle dealer license
- You must sell more than 4 vehicles a year to maintain your license
For more information, or for answers to your North Dakota Motor Vehicle Dealer licensing questions, contact the North Dakota Department of Transportation Dealer Services at 701-328-2725
You can also reference North Dakota’s Motor Vehicle Dealer Licensing and Bonding Chapter here.