Licensing Requirements

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 about these regulations, contact the Minnesota Small Business Assistance Office at (651) 556-8425, or your local government.

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 five 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.

Applying for a Dealer License

To obtain a dealer license in Minnesota, you must do the following:

• Fill out the Application for Dealer License completely, because incomplete applications are returned to applicants.

• Include the Commercial Location Checklist (PS 2410).

• Include the original copy of your Dealer Bond Form.

• Include a Worker's Compensation Compliance Verification Certificate.

• Include zoning approval.

• For new dealers and DSB license applicants selling new mopeds, provide a Franchise Agreement from the manufacturer of each new make of vehicle for sale.

• Proof of ownership or lease of property.

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. Failure to meet the requirements or misstatements on the checklist will cause the application to be denied. In addition, any applicant denied a dealer license must wait at least one 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:

• DSB license application is $18.50.

• Scrap metal and parts dealer application is $258.50.

• All other dealer license application fees are $258.50.

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

• 445 Minnesota St., Suite 186

• St. Paul, MN 55101-5186

You can contact the department at (651) 296-2977 or via email at DealerQuestion@mndriveinfo.org with questions or for more information about becoming an auto dealer in Minnesota.

Renewals

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 costs $158.50. If you let your license lapse, you must re-apply for a new one, and pay the $100 application fee plus the annual renewal fee of $158.50.