Dealer Licensing in Minnesota
Minnesota and its Driver and Vehicle Services (DVS) require a number of vehicle-related businesses and service providers to obtain valid dealer licenses.
The Minnesota DVS also advises vehicle-related businesses, including auto dealers, that there are other regulations and requirements that may apply to them from city, county, other state, or federal agencies.
If you have questions contact your local government or your local Driver and Vehicle Services office. You can also find excellent information on starting a business by contacting the Minnesota Department of Employment and Economic Development at (651) 259-7144 from the Twin Cities, (800) 657-3858 Toll free statewide and (651) 296-3900 for TTY.
The following businesses and service providers must have dealer licenses in Minnesota:
- Those who lease, sell, or arrange sales of new or used motor vehicles.
- Those who sell new mopeds under a franchise agreement or sell new or used boats, snowmobiles, or horse trailers with GVW of 24,000 lbs. or less (called DSB Dealers)
- Those who have leased or sold more than 5 vehicles, wholesale or retail, within 12 months.
- Those who sell used vehicle parts, or process and sell scrap metal from vehicles they've acquired.
- Those who conduct sales by consignment, or arranged sale or lease.
To obtain a dealer license in Minnesota, you must do the following:
- Fill out the Motor Vehicle Dealer License Application (Form PS2401) completely, because incomplete applications are returned to applicants.
- Include the Commercial Location Checklist (Form PS2410).
- Include the original copy of your Motor Vehicle Dealer License Surety Bond (Form PS2446).
- Include a Certification of Compliance with Minnesota Worker's Compensation Law (Form PS2420).
- Include a Zoning Verification form (Form PS2421).
- For new dealers and DSB license applicants selling new mopeds, provide a Dealer Franchise Agreement (Form PS2404) from the manufacturer of each new make of vehicle for sale.
- Proof of ownership or Verification of Property Lease (Form PS2407).
The Minnesota DVS advises applicants to hold off on submitting their dealer license applications until their locations fully meet all the necessary items on the Commercial Location Checklist (Form PS2410). Failure to meet the requirements or misstatements on the checklist may cause the application to be denied. In addition, any applicant denied a dealer license must wait at least 1 year before reapplying.
Used dealer license applicants are encouraged to submit photographs of their commercial building, display lot, and exterior sign.
Minnesota charges the following fees for dealer licenses:
- New vehicle dealerships: $285.
- Used vehicle dealerships: $285.
- Auctioneers: $285.
- DSB dealers: $25.
- Brokers: $285.
- Lessors: $285.
- Limited use dealers: $285.
- Salvage pool dealers: $285.
- Scrap metal and parts dealers: $285.
- Used parts dealers: $285.
- Wholesalers: $285.
Note that all fees above are the same except for DMB dealer licenses. You should also be prepared to pay a 10% surcharge to off-set the costs of the DVS building an electronic licensing system.
The appropriate fee must be included with your application, and required materials must be faxed to (651) 297-1480, or mailed to Minnesota DVS at:
- Minnesota Department of Public Safety
- Driver and Vehicle Services
- Dealer Unit
- 445 Minnesota St., Suite 186
- St. Paul, MN 55101
You can contact the department by phone at (651) 296-2977 or via e-mail at DealerQuestion@mndriveinfo.org with questions or for more information about becoming an auto dealer in Minnesota.
Dealer licenses are valid for 12 months. You may renew your license beginning on the 15th of the month preceding the expiration month. The renewal license fee may vary based on your type of dealer license - please contact the Minnesota DVS through any of the methods listed above for details about your specific renewal fee.Other Topics in This Section