Kansas Auto Dealer License Guide

Your business location must be owned or leased separately from your home address. Zoning certification for the business location is necessary, issued by the state or city zoning office.

Your business location must meet the following requirements:

• A building or structure, separate from a residence, owned or leased, designated as an office or place to receive mail, keep records and conduct business.
• Have an operable telephone listed in the business’ name.
• A sign with the business name with durable lettering at least 10 inches in height and easily visible from the street, identifying the established place of business, unless prohibited by local zoning laws. If prohibited by zoning laws, verification from the zoning office must be provided.
• You must submit pictures of the established place of business, including the storefront and sign, with your application

You need to have automobile liability insurance listed in your business name with a minimum liability of:

• $25,000 per person for bodily injury
• $50,000 per incident
• $10,000 covering property damage

You are also required to hold insurance on your place of business and the inventory. Your insurance company must forward a certificate of insurance to the Department of Revenue’s office before the license is issued.

Auto Dealer Insurance

There are several types of insurance coverages that are recommended for auto dealers, but the recommended coverage will vary based on your business and personal needs.

If you’d like to learn more about all of the insurance coverages available to you, please read our auto dealer insurance guide.

The cost of a Kansas auto dealer bond is a small percentage of the total bond amount. The bond cost varies depending on your financial strength, e.g. personal credit. You can also take a look at our most frequently asked surety bond questions.

• Fill out our online application form to obtain a free bond quote for your auto dealer license. It takes 5 minutes and you will be able to lock your rate for the next 90 days (in case you want to purchase the bond).

All auto dealers must purchase a bond to get licensed. You will require bond form D-20.

Bond amount required: $30,000

Notes:

• If your dealership is a corporation, the bond must be in the corporate name only, and accompanied by a copy of your Secretary of State Corporation papers.
• If your dealership is a partnership, the bond must be first in all doing business as (DBA) owners’ names, and then the dealership name.
• If your dealership is a sole proprietorship, the bond must be in your name, DBA the dealership name.

Prepare the following documents to submit along with your application:

• Copy of Sales Tax Certificate
• Tax clearance certificate (can be requested online)
• Verification from your county treasurer that you do not owe any personal property taxes
• Articles of Incorporation from Secretary of State (if your business is a corporation or LLC)
• Franchise Certification (D-100) (new car dealers only)
• Copy of the Franchise Sales Agreement between the manufacturer/distributor and new vehicle dealer (new car dealers only)
• Relevant Market Area request sent to Director of Vehicles (new car dealers only)
• KDOT Certificate of Compliance (D-35) (salvage dealers only)
• Three credit references to prove your financial fitness (if your business is a sole proprietorship or partnership only)

Fill out and submit your application form along with all supporting documentation.

Fees:

• $275.00 fee for the first auto dealer tag
• $75.00 dealer license fee
• $25.50 fee for each additional dealer plate
• $350.50 for each full-use plate
• $35.00 supplemental dealership location fee (for any secondary dealer lot locations)

Note: If you issue temporary registration permits to your customers, you should register for the Dealer Portal to use online services.

When your application is completed, mail it to:
Kansas Department of Revenue
Division of Vehicles
Topeka, Kansas 66626-0001
(785) 296-3621