Licensing Requirements

Are you thinking of becoming a motor vehicle dealer in Kansas? Before you do, here's some information to help you determine what you will need to get started.

In order to do business as a motor vehicle dealer in Kansas, you must first be licensed and be issued a dealer number if you plan to sell more than five vehicles per year. If you are considering the manufacture of motor vehicles, whether they are from a standard stock or if they are custom vehicles, you must also be licensed.

The Necessary Paperwork

The Kansas Department of Revenue is the agency that governs the buying and selling of motor vehicles in Kansas. They offer a form outlining the basic requirements for obtaining your motor vehicle dealer's license.

Before You Apply

Before you begin the licensing process, you must have already established a place of business and have a business telephone number in place. The name on your business and the name on the sales tax registration application must match, and the business location will need to be cleared as having met all zoning laws for the sale of motor vehicles.

Sign Up!

You'll also need to have a sign, measuring a minimum of 10 inches in height, listing your business name, which can easily be seen from the street. You must have public liability and property damage insurance on the entire inventory at the place of business.

Applying For a Dealer's License

Now that you've got the place of business, inventory, and sign in place, you may begin the application process. Start by completing the Application for a Vehicle Dealer's License. Be sure to have your local county treasurer's office sign the application as proof that you do not owe any personal property taxes.

Additional Requirements

Be prepared to provide:

• Three credit references in order to verify your financial stability.

• The franchise agreement for each new make of vehicle you will carry. You will need to complete the D-100 Franchise Agreement form.

• Completed sales tax clearance.

• Proof of a $30,000 surety bond, unless you are a manufacturer, distributor, factory branch, lending agency or manufactured home dealer, in which case you are exempt from providing a surety bond. You may use the Vehicle Dealer Bond Application.

• If you are applying to become a salvage dealer, you must first contact the Department of Transportation (DOT) for a verification of your salvage storage compliance at (785) 296-3501. You will also need to provide a completed Certificate of Compliance form.

Expirations and Renewals

All Kansas motor vehicle dealer licenses expire on December 31 of the calendar year for which they were issued. Renewal fees are the same as license fees and must be paid each calendar year.