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Illinois Auto Dealer License: Step-by-Step Guide

  • Learn how to get licensed in a few easy steps
  • Understand the licensing requirements for your state
  • Learn how to stay compliant
  • Get a free license bond quote in minutes
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You'll likely need to get an auto dealer bond to get licensed. Let us email you some money saving tips for when you need to get bonded.

Determine Which Type of License You Need:

  • New and Used
  • Used Only
  • Motorcycles
  • Trailers/Mobile Homes

1

Obtain a Permanent Business Location

Check the Illinois Administrative Code, Section 1020.10 for the requirements. Once you’ve met them, you’ll be inspected by Secretary of State personnel to determine if the established place of business requirement is met.


2

Attend Dealer Training Classes

Individuals applying for a used car dealer, broker, or wholesaler license for the first time are required to attend an eight-hour training course provided by the Illinois Secretary of State's office. The training must be completed prior to a license being issued. The training will cover a wide variety of topics which affect dealerships, for example, licensing requirements, applicable taxes and consumer protection laws.

To register for training, contact Regina Chausse via email ([email protected]) or call 217-785-2050.


3

Compile the Required Documents

You’ll need to acquire and fill out the following documents:

  • A copy of the lease agreement (if the business location is leased)
  • A statement that the applicant has been approved for registration under the Retailers' Occupation Tax Act by the Department of Revenue

4

Obtain Proof of Liability Insurance

A certificate of insurance in a solvent company authorized to do business in the State of Illinois must be included with your application. The policy must provide liability coverage in the minimum amounts of $100,000 for bodily injury to, or death of, any person, $300,000 for bodily injury to, or death of, two or more persons in any one accident, and $50,000 for damage to property. Trailer and mobile home dealers are exempt from this requirement.


5

Obtain Your Auto Dealer Bond

Vehicle dealers must be bonded for the first 36 consecutive months of operation, so long as they have not been delinquent or deficient in the transmittance of title/registration fees or taxes.

Bond Amount Required:
  • $20,000 for all auto dealers

It’s important you understand how surety bonds work and that you're responsible for paying claims in full.


6

Submit Your Dealer License Application

Submit your application form, along with all supporting documentation, to the Illinois Vehicle Services Department.

Fees:

  • Certificate of Authority annual fee: $1,000 ($500 for a first application between June 15 and December 31)
  • Master plates annual fee: $45
  • Duplicate plates: $13

Additional fees can be found on page 4 of the dealer application.

Mail your application to:

Vehicle Services Department
Dealer Licensing Section
501 S. Second St., Rm. 069
Springfield, IL 62756

The Office of the Secretary of State must process it within a reasonable time. This is usually between two and four weeks.



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