How to Get a Dealer License in Pennsylvania in 9 Easy Steps

In Pennsylvania, all motor vehicle dealers must be licensed and bonded to legally sell vehicles. The State Board of Vehicle Manufacturers, Dealers, and Salespersons oversees the licensing process, ensuring compliance with state regulations. Dealers must choose the appropriate license type—such as new, used, motorcycle, or miscellaneous dealer—based on their business model.

Additionally, dealerships must meet business location, bonding, and operational requirements before applying. Follow these steps to apply for your Pennsylvania auto dealer license:

Step 1: Determine the Type of Dealer License Needed

In Pennsylvania, the State Board of Vehicle Manufacturers, Dealers, and Salespersons issues various types of dealer licenses. Identifying the appropriate license is crucial for compliance. The main categories include:

• New Vehicle Dealer: Authorized to sell new vehicles.
• Used Vehicle Dealer: Authorized to sell pre-owned vehicles.
• Motorcycle Dealer: Specializes in selling motorcycles.
• Miscellaneous Dealer: Includes businesses such as repair and towing services, vehicle salvage, transporters, financiers or collector-repossessors, and watercraft trailer dealers.

Each license type has specific requirements and permissions.

Step 2: Create an eLicensing Account

Pennsylvania utilizes the Pennsylvania Licensing System (PALS) for professional licensing applications. To begin the dealer licensing process:

1. Visit the PALS portal.
2. Click on “Register” to create a new account.
3. Follow the prompts to enter your personal and business information.
4. Once registered, log in to your account to access the dealer license application.

This account will be used to submit applications, track statuses, and manage license renewals.

Step 3: Complete the Dealer Application

After setting up your eLicensing account, proceed to complete the dealer application. Ensure you have the following documentation:

• Business Information: Legal business name, address, and contact details.
• Ownership Details: Names and titles of all owners, partners, or corporate officers.
• Business Location: Proof of a permanent business location that meets state requirements, including:
  • A display area for at least five vehicles.
  • An office equipped with a desk, chair, and lockable file cabinet.
  • A permanent sign displaying the business name.

Ensure all information is accurate and complete to avoid processing delays.

Step 4: Obtain a $20,000 Auto Dealer Bond

Under Pennsylvania Consolidated Statutes Title 75, Section 1335, motor vehicle dealers must file a $20,000 auto dealer bond to obtain a license to sell vehicles in the state.

This bond serves as a financial guarantee that the dealer will adhere to state laws and ethical business practices. To obtain the bond:

1. Go to our dedicated Pennsylvania Auto Dealer Bond page.
2. Submit an application.
3. Pay the bond premium, which is a percentage of the total bond amount.

Once secured, include the original bond document with your dealer application.

Step 5: Provide Criminal History Records

All owners, partners, or corporate officers must submit an original criminal history record obtained from the Pennsylvania State Police. To acquire this record:

1. Visit the PATCH website.
2. Request and pay for the background check.
3. Submit the results with your dealer application.

Step 6: Ensure Facility and ADA Compliance

Your dealership must comply with state facility requirements and the Americans with Disabilities Act (ADA). This includes:

• Zoning Compliance: Obtain verification from your local zoning board that your business location is approved for dealership operations.
• Certificate of Occupancy: Secure this certificate from your local building inspection authority, confirming that your facility meets all building codes and is safe for occupancy.
• ADA Compliance: Ensure your facility is accessible to individuals with disabilities, including accessible parking, entrances, and restrooms.

Maintaining compliance is essential for both legal operations and customer accessibility.

Step 7: Submit the Application

With all required documentation prepared, submit your completed application to the State Board of Vehicle Manufacturers, Dealers, and Salespersons. Include the following:

• Completed dealer application form.
• $20,000 surety bond.
• Criminal history records for all relevant individuals.
• Proof of business location compliance (zoning verification, certificate of occupancy).
• Proof of insurance.
• Application fee.

Apply through the PALS portal or mail it to the address provided in the application instructions.

Learn more about how to get licensed and start your auto dealership by downloading our FREE Pennsylvania Dealer License Ebook Guide!

Step 8: Schedule and Pass the Inspection

After your application is reviewed and deemed complete, a representative from the State Board will contact you to schedule an inspection of your dealership facility. To prepare:

• Ensure all signage is properly displayed.
• Verify that the display area meets size and condition requirements.
• Confirm that the office area is appropriately furnished and secure for record storage.

Passing the inspection is a critical step toward obtaining your dealer license.

Step 9: Apply for Dealer Plates

Once licensed, apply for dealer plates through PennDOT by submitting Form MV-349 along with the required fee. Dealer plates allow you to legally operate vehicles for business purposes.

Renewal of Your Pennsylvania Dealer License

Dealership licenses in Pennsylvania expire on May 31 of each odd-numbered year. You must renew your license before its expiration date. If you don’t, your ability to legally operate your dealership will be suspended until you come into compliance.

Make sure to renew your dealer license every two years via PALS, keep your $20,000 surety bond and insurance active, and maintain proper sales records. Stay compliant with the Pennsylvania Vehicle Code to avoid penalties.

How Much Does a Pennsylvania Dealer License Cost?

The fee for obtaining an auto dealer license in Pennsylvania is $175, which will increase to $190 starting July 1, 2025.

Apart from this fee and the surety bond premium that has to be paid, there are additional fees covering the business registration, criminal history check via the PA State Police portal, business insurance, and paying for each individual dealer plate that has to be ordered.

Common Mistakes to Avoid When Getting a Pennsylvania Dealer License

Avoiding these mistakes can save time, and money, and prevent application rejections:

1. Submitting an incomplete application – missing documents like criminal history records, surety bond certificates, or zoning approvals can delay approval. Always double-check requirements before submitting.
2. Not meeting business location requirements – your dealership must have a permanent location, a designated display area for at least five vehicles, and proper signage.
3. Failing the inspection – ensure your office, signage, and vehicle display area meet state standards before the State Board inspection.
4. Not maintaining surety bond & insurance – your $20,000 surety bond and liability insurance must remain active. Failure to renew can result in license suspension.
5. Ignoring compliance regulations – keep detailed sales records, follow the Pennsylvania Vehicle Code, and renew your license every two years to avoid fines or penalties.

Can I Get a Dealer’s License Without a Lot in Pennsylvania?

In Pennsylvania, obtaining a dealer’s license requires a physical location or lot. The application must include details of the principal place of business, a certificate of occupancy, and a lease or deed for the property.

If it’s not possible for you to obtain a large lot, at least in the beginning, you need to have a separate business location with a permanent office next to a display area. Requirements include as mentioned in step #3 – a designated display area for at least five vehicles, a lockable file cabinet, desk, and phone in the office, and a permanent sign showing your dealership name and hours. You will also need to comply with zoning laws and have a Certificate of Occupancy from the Department of Labor and Industry.

Ensure you meet all licensing requirements before applying.