Minnesota Dealer License

MINNESOTA DEPARTMENT OF PUBLIC SAFETY
DRIVER AND VEHICLE SERVICES
445 Minnesota Street, Suite 186, St. Paul, MN 55101-5186
PHONE: 651-296-2977
FAX: 651-297-1480
EMAIL: DealerQuestion@mndriveinfo.org
Who must have a Dealer License (Minnesota Statutes, chapter 168.27)
• Anyone engaged in the business of leasing, selling, or arranging the sale of motor vehicle (new or used).
• Anyone who has leased or sold more than five vehicles, either wholesale or retail, in a twelve month
period.
• Anyone in the business of selling used vehicle parts or processing and selling scrap metals acquired from
vehicle.
• Anyone who conducts consignment sales or arranges sales or leases.
What must accompany the completed application for a dealer license?
• The application must be completed in full - incomplete applications are returned to the applicant
• Commercial Location Checklist (PS 2410)
− Do not file an application until the location meets all the necessary requirements listed on the checklist
− Failure to meet the requirements or any misstatement on the checklist will result in the denial of the
dealer license
− Any applicant denied a dealer license must wait one year to reapply (Minnesota Statutes, chapter
168.27, subdivision 11)
− Used license applicants are encouraged to submit photos of the commercial building, designated
display lot, and exterior sign.
• Original dealer bond form
• Franchise agreements from the manufacturer for each make of new vehicle being sold. This requirement
applies only to new dealers and DSB licensees selling new mopeds.
• Worker’s Compensation Verification Statement
• Zoning Approval
• Proof of property ownership or verification of leased property
Zoning
• Any type of dealership is considered a commercial operation. Consequently, dealerships are required to be
in a commercial location.
• In agricultural and industrial areas, zoning officials may consider issuing special use permits for a
commercial operation.
What is the fee for applying for a dealer’s license?
• The application fee for a DSB license is $18.50
• Scrap Metal and Parts dealer is $258.50
• The application fee for all other licenses is $258.50
• You need to submit the appropriate fee with your application for a dealer’s license
Questions? Contact the DVS Dealer Unit.
DEALER LICENSES – Basic Requirements
Minnesota Statutes, section 168.27, subd.10 and Minnesota Rules, part 7400 Ms.168.27 MS 65B MS 168.27 sub.16, 17

*A separate license if required if the dealer is selling in a city less than 100,000 population, outside the seven-county metro area.
**Liability Insurance is required if lease is for 180 days or more.
Commercial Building: A permanent, enclosed building that is on a permanent foundation, connected to local sewer and water facilities, or otherwise complying with local
sanitary codes, adapted to commercial use and conforming to local government zoning requirements. This may include strip office malls or garages if a separate entrance and a
separate address is maintained and the dealership is clearly identified as a separate business.
Commercial Office Space: Office space occupying all or part of a commercial building.
Liability Insurance: Insurance is required on all vehicles held for sale/resale. Minimum limits: $30,000 per person, $60,000 per accident, $10,000 property damage, $25, 000
per person/$50,00 per accident under and uninsured motorist liability protection, $20,000 medical and $20,000 non-medical personal injury protection
Surety Bond: $50,000
DSB License (boat/snowmobile/small horse trailer/motorized bicycle) $5,000
Dealer License Fee: $258.50 DSB License (boat/snowmobile/small horse trailer/motorized bicycle) $18.50