Oregon Auto Dealer License: Requirements & Steps

If you plan to open a dealership in Oregon, you must apply for a license through the Oregon Driver and Motor Vehicle Services (DMV) before you can legally buy, sell, or display vehicles for sale. 

This guide walks you through every requirement — from choosing your license type to renewing your certificate — with current fees, bond amounts, and recent legislative updates that competitors have not yet reflected.

Oregon Auto Dealer License Requirements

Before stepping through each step, here is what Oregon requires of every applicant:

• A dealer certificate type — either a vehicle dealer certificate (new and used vehicles, including RVs) or a rebuilder certificate (vehicles repaired or reconstructed for resale).
• A registered business entity — sole proprietorship, general partnership, LLC, or corporation. LLCs and corporations must file with the Oregon Secretary of State before applying.
• Liability insurance — minimum coverage of $25,000 per person / $50,000 per accident for bodily injury and $20,000 for property damage, covering all vehicles in the dealer’s possession.
• A $50,000 surety bond — you pay only a yearly premium, not the full bond amount. An irrevocable letter of credit meeting the same amount is also accepted. Dealers holding the legacy certificate for motorcycles, mopeds, Class I ATVs, and snowmobiles exclusively require a $10,000 bond instead.
• An 8-hour pre-licensing course — completed with a DMV-approved provider before submitting your application. A Certificate of Education is required at submission.
• An approved business location — with city or county zoning approval signed on your application, sufficient display space, an exterior sign, and a means for the public to contact the dealer during business hours.
• A completed application packet — including a zoning approval form, surety bond, liability insurance certificate, education certificate, and government-issued photo IDs for all owners, partners, LLC members, or corporate officers.

Step 1: Select the Right Oregon Auto Dealer License

The type of certificate you apply for will depend on the vehicles you intend to sell. Under ORS 822.005, Oregon currently issues dealer certificates for:

• Vehicle dealer — a person or business that sells used vehicles or offers new ones under a franchise agreement, including recreational vehicles. This is the standard certificate that covers the widest range of inventory.
• Rebuilder — anyone who repairs, restores, or reconstructs vehicles for resale.

Powersports dealers: Oregon previously offered a separate certificate for dealers in snowmobiles, Class I ATVs, mopeds, and motorcycles. Businesses that obtained that certificate before the 2017 Act took effect (January 1, 2018) may continue to operate and renew it. New applicants can no longer apply for that separate certificate and must apply under the standard vehicle dealer certificate instead.

Step 2: Register Your Business

Before applying for your dealer certificate, your business must have a formal legal structure registered with the Oregon Secretary of State Corporation Division. Oregon dealerships may operate as one of four entity types:

• Sole proprietorship: No state filing required if you operate under your full legal name. If you use a trade name, you must register an Assumed Business Name with the Registry.
• General partnership: May operate without filing unless the business name does not include each partner’s name, in which case an Assumed Business Name must be filed.
• Limited liability company (LLC): Must file Articles of Organization with the Registry.
• Corporation: Must file Articles of Incorporation with the Registry.

All businesses must also obtain a Federal Employer Identification Number (FEIN) from the IRS. If you have employees, you will additionally need an Oregon Business Identification Number (BIN), which you can register for through the Oregon Department of Revenue.

Step 3: Set Up an Approved Business Location

Obtain City or County Location Approval

Before submitting your dealer application to the DMV, you must take it to the city or county office that handles zoning, planning, or community development. That office must sign Lines 9 through 11 of the application (Form 735-370) to confirm that your proposed dealership location complies with local land-use requirements. Some cities and counties charge a fee for this signature.

Meet DMV Location Requirements

Every dealer’s business location must:

• Have sufficient space to display at least one vehicle of the type the certificate authorizes the dealer to sell
• Display a sign permanently affixed to the building or land that identifies the dealership by name
• Display the vehicle dealer certificate in a publicly conspicuous manner — this requirement has no exemption
• Provide a means for the public to contact the dealer or an employee at all times during regular business hours

Can I get a dealer license without a lot? Dealers who cannot satisfy requirements (1), (2), or (3) above due to a zoning or ordinance restriction may apply for an exemption using Form 735-7178 (Request for DMV Location Requirement Exemption). You must attach written evidence from the appropriate zoning authority documenting the specific restriction. Note that you can never receive an exemption from the requirement to display your dealer certificate. Wholesale dealers may be eligible for separate exemptions — contact the DMV Business Licensing Unit at (503) 945-5052 to confirm.

Step 4: Carry Liability Insurance

Under ORS 822.033, every dealer must carry vehicle liability insurance covering all motor vehicles the dealership owns, operates, maintains, or has in its possession, as well as any person who uses those vehicles with the dealer’s consent. Coverage must meet the minimum amounts set by ORS 806.070:

• $25,000 for bodily injury or death of one person in a single accident
• $50,000 for bodily injury or death of two or more people in a single accident
• $20,000 for damage to another person’s property in a single accident

Insurance Exemptions

Dealers who sell exclusively in the following vehicle types may file a Certificate of Exemption (Form 735-7024) instead of a Certificate of Insurance:

• Antique motor vehicles issued permanent registration under ORS 805.010
• Class I or Class III all-terrain vehicles (ATVs)
• Snowmobiles
• Trailers (utility, horse, or boat)
• Campers and travel trailers

If you sell even a single vehicle outside these categories, you must file a full Certificate of Insurance.

Step 5: Secure the Required Oregon Auto Dealer Bond

To operate as a vehicle dealer or rebuilder in Oregon, you must secure a $50,000 surety bond. The bond protects consumers against financial losses caused by dealer fraud, deceptive statements, or violations of Oregon vehicle laws governing dealer regulation, ownership transfers, permits, and registration.

Exception for powersports dealers: Dealers who hold the legacy certificate to deal exclusively in motorcycles, mopeds, Class I all-terrain vehicles, or snowmobiles — or any combination of those vehicles — are required to maintain a bond of $10,000 rather than $50,000. This applies only to dealers who obtained that certificate before January 1, 2018, when the separate powersports certificate was discontinued for new applicants.

How Bond Premiums Work

You do not pay the full $50,000 — you pay a yearly premium, which is a fraction of the total bond amount. Premium rates typically range from 1% to 3% for dealers with good credit, and can reach 5% to 10% or higher for dealers with challenged credit or financial history. In practice, this means:

• Good credit: approximately $500–$1,500 per year
• Fair to poor credit: approximately $2,500–$5,000+ per year

When evaluating your application, surety companies review your personal and business credit, financial statements, assets, and liquidity. The lower the perceived risk of a claim, the lower your premium.

Bryant Surety Bonds offers fast, competitive quotes on Oregon auto dealer bonds with approval in minutes — get your quote today and have your bond in hand before you submit your license application.

Bond Renewal

Unlike your dealer certificate, which is valid for 3 years, the surety bond must be renewed annually on the same date it was originally issued.

Alternative to a Surety Bond

Oregon law also allows dealers to provide an irrevocable letter of credit in place of a surety bond, provided it meets the same $50,000 requirement. However, most banks will require you to keep the full $50,000 in a deposit account as collateral, which ties up capital that would otherwise be available for payroll, inventory, and operating expenses. For most dealers, a surety bond is the more practical and cost-effective option.

Step 6: Complete the Required Pre-Licensing Course

All applicants must complete an 8-hour pre-licensing course from a DMV-approved provider before submitting their application. The course covers topics such as vehicle registration and titling, ownership documents, VIN inspections, out-of-state and replacement titles, corrections on title applications, and imported vehicles. At the end, you receive a Certificate of Education that must accompany your application.

Approved Education Providers

The Oregon DMV currently recognizes these approved providers (see full list):

• @ Your Pace Online: www.onlineautodealered.com
• Auto Dealers Certified Education School (OIADA): www.oiada.com

Who Is Exempt from the Education Requirement?

Per Form 735-370C, the following applicants may submit a Certificate of Exemption from dealer education instead of an education certificate:

• Franchised dealers of nationally advertised new vehicles
• Franchised dealers of nationally advertised new recreational vehicles
• Vehicle rental companies with a nationally advertised franchise operated by a nationwide corporation
• National auction companies holding dealer and dismantler certifications that sell totaled vehicles
• Applicants for an original certificate who hold a pre-certification education certificate from a current, certified Oregon dealer

Renewal applicants: Instead of 8 hours, renewal applicants must complete 4 hours of continuing education per year — totaling 12 hours over the full three-year certificate period.

Step 7: Gather Your Required Documents

To meet Oregon dealer license requirements under ORS 822.020, you must submit the following with your completed Application for Three-Year Vehicle Dealer Certificate (Form 735-370):

• Completed Form 735-370 with city/county zoning approval on Lines 9–11
• Surety bond (Form 735-370B) — must show original/wet signature of all owners
• Liability insurance certificate (Form 735-370B) or Certificate of Exemption (Form 735-7024) if applicable
• Dealer education certificate from a DMV-approved provider, or Certificate of Exemption (Form 735-370C) if eligible
• Copies of valid government-issued photo ID for every owner, partner, LLC member, or corporate officer
• Supplemental application (Form 735-372) if you are applying for more than one business location
• Check or payment for $1,188 (original certificate including one plate), plus $350 per additional location

About dealer plates: One dealer plate is included with the $1,188 certificate fee. Additional standard plates (12″×6″) or small plates (7″×4″) are available for $550 each and can be ordered using Form 735-6938. Dealer plates may be used only on vehicles owned or held in the dealer’s sales inventory, and only by the dealer, its employees, or persons authorized by the dealer. They may not be used on vehicles operated for commercial purposes.

Step 8: Submit Your Application

Once all documents are assembled, mail or deliver your complete application package to:

DMV – Business Regulation

1905 Lana Ave NE

Salem, OR 97314​

Processing time: Per the Oregon DMV, complete applications typically take 2–3 weeks to process. You may not conduct any dealer business until the application has been approved and you have received your certificate.

Renew Your Oregon Auto Dealer License

Your dealer certificate is valid for three years from the date of issuance and must be renewed within 15 days after the prior certificate expires. To renew, submit the Renewal Application for Three-Year Business Certificate (Form 735-366) along with:

• A current certificate of liability insurance (or exemption)
• A copy of a valid government-issued photo ID
• A plate billing list (used to calculate your renewal fees in place of the fee section on the application)
• Proof of 12 hours of continuing education completed during the three years (4 hours per year)

You do not need a new zoning approval letter unless you have changed or added a business location.

Bond renewal: Remember that while your certificate runs for three years, your surety bond must be renewed annually on the original issuance date.

Powersports certificate holders (pre-2018): If you hold the legacy motorcycle/snowmobile/ATV/moped certificate obtained before January 1, 2018, renewal requires a $10,000 surety bond (confirmed by Oregon Revised Statute 822 and Senate Bill 840 (2025)).

Important Legislative Updates for Oregon Dealers

Oregon recently passed two pieces of legislation now in effect that may require updates to your dealership’s operations or disclosures.

House Bill 3178 (Effective January 1, 2026) — Finance Transaction Disclosures

Before closing any vehicle sale or lease that depends on financing approval, Oregon dealerships must provide the buyer with a separate written notice. The notice must explain the buyer’s right to void the transaction if no lender approves the financing on the exact agreed terms within 10 calendar days of taking possession, and include the Oregon Department of Justice contact details. It must be provided in English, Spanish, Korean, Chinese, Vietnamese, and Russian.

House Bill 2660 (2025) — 30-Day Trip Permit for Out-of-State RV Buyers

Oregon dealers may now issue a $70 trip permit for recreational vehicles sold to out-of-state buyers who plan to title the vehicle in another state. One permit per vehicle, Oregon residents are not eligible, and the permit runs for one uninterrupted 30-day period from the date of issuance.

FAQs

How many cars can I sell in Oregon without a dealer license?

Under ORS 822.005, a dealer certificate is required the moment you buy, sell, broker, trade, or display a vehicle for sale as a business — there is no minimum number. ORS 822.015(1)(b) exempts owners selling vehicles held for personal, family, or household use, but if you sell more than five such vehicles in a calendar year, the burden falls on you to prove they were genuinely held for personal purposes.

Can I get an Oregon dealer license without a lot?

You do not need a traditional car lot, but you do need a permanent business location with sufficient display space for at least one vehicle, an exterior sign, a means for the public to contact the dealer during business hours, and the dealer certificate displayed conspicuously. Dealers unable to meet the first three requirements due to a zoning restriction may apply for an exemption using Form 735-7178, supported by written evidence from the zoning authority. There is no exemption from the requirement to display the dealer certificate.

Can Oregon dealerships use an alternative to a surety bond?

Yes — under ORS 822.030, an irrevocable letter of credit meeting the same $50,000 requirement is accepted in place of a surety bond. In practice, however, most banks require the full amount to be held as collateral for the duration, tying up capital that would otherwise be available for operations. A surety bond requires only a yearly premium and is the more practical option for most dealers.

What vehicles can I sell without an Oregon dealer license?

Exempt vehicles and sellers include emergency vehicles, trolleys, farm trailers, road rollers, and utility or boat trailers weighing 1,800 pounds or less; vehicles sold by a public officer, personal representative, trustee, or receiver in an official capacity; and individuals selling vehicles held for personal, family, household, hobby, or historical purposes.

What are the penalties for operating without a valid dealer certificate?

Violations such as failure to display the certificate, denying inspection access, or conducting dealer business while a certificate is suspended, cancelled, or revoked are Class A misdemeanors, carrying a fine of up to $6,250, up to 364 days imprisonment, or both. Other violations may be treated as Class B or Class D traffic violations.

What can trigger penalties for a licensed Oregon dealer?

Licensed dealers may face penalties for failing to maintain required vehicle records — including description, VIN, certificate of title, and transaction details — failing to keep the dealer certificate on continuous public display, denying access for inspections by law enforcement or administrative authorities, or conducting business during a suspension, cancellation, or revocation.