Dealer Licensing in Minnesota

The Minnesota Department of Public Safety’s (DPS) Driver and Vehicle Services (DVS) oversees all dealer license applications.

When you apply for a car dealer license in MN, be prepared to put in some legwork, which includes (but is not limited to):

• Obtaining zoning verification for your approved commercial location.
• Complying with the state’s worker’s compensation laws.
• Purchasing liability insurance and a surety bond.

Ready for the forms and details? We'll guide you through below.

Who Needs a Dealer License?

 In Minnesota you are required to have a dealer license if you: 

• Directly sell or lease more than 5 vehicles within 12 months (new or used).
• Conduct consignment sales of cars.
• Broker the sale or lease of cars.
• Sell parts and/or scrap metal from used cars. 

Apply for a MN Dealer License

 To apply for a Minnesota dealer license, bring the following to your local DVS:

• A completed:
  •  Motor Vehicle Dealer License Application (Form PS2401).
    • You must list all of the following people in the application:
      • Owners.
      • Board members.
      • Officers.
      • Governors.
      • Any shareholder who holds at least 5% of shares.
    • You should also be prepared to provide your liability insurance information.
  • Commercial Location Checklist (Form PS2410).
    • This document provides details about business location requirements for your license type. Signing it verifies you’ve met all requirements.
  • Zoning Veification (Form PS2421).
    • Must be signed by a zoning official in the area where the car dealership is located.
  • Certification of Compliance with Minnesota Worker's Compensation Law (Form PS2420).
  • Dealer Surety Bond (Form PS2446) proving purchase of a $50,000 bond.
  • Demonstration and In-Transit Plate/Sticker Application (Form PS2405).
    • Includes applicable dealer license plate fees.
  • Franchise Agreement (Form PS2404).
    • Applicable only to new car dealer license applicants.
• Proof of responsibility for the business property:
  • Leased: Verification of Property Lease (Form PS2407).
  • Owned: Proof of ownership, such as a property tax statement.
• A check or money order for the $250 fee, payable to “DVS.”
  • This fee is in addition to the demonstration/in-transit fees. Other additional fees may apply. Contact the DVS for more information.

Mail the above to:

Minnesota Department of Public Safety
Driver and Vehicle Services
445 Minnesota Street, Suite 186
St. Paul, MN 55101

This application has a lot of moving parts and can easily become overwhelming—don’t hesitate to call the Minnesota DVS at (651) 201-7800 with any questions you may have.