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Kansas 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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Auto dealer licenses are handled by the Department of Revenue. For more information, see the Dealer Licensing and Salesperson’s Handbook and Helpful Tips on Obtaining Your Dealer License. Download forms here. Most of the dealer license is processed online.


Determine Which Type of License You Need:

  • New/Used Vehicle Dealer
  • Used Vehicle
  • Salvage Vehicle Dealer
  • Wholesale Vehicle Dealer
  • Auction Motor Vehicle Dealer

1

Obtain a Permanent Business Location

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

2

Obtain Proof of Liability Insurance

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.


3

Obtain Your Auto Dealer 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.

4

Compile the Required Documents

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)

5

Compile the Required Documents

Submit Your Dealer License Application

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



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