How Much Does a Minnesota Dealer License Cost?

Paid to the Minnesota Driver and Vehicle Services when you submit your dealer license application. This fee is non-refundable — you pay it whether your application is approved or not.

Source: MN Statutes 168.27 | One-time at application

You must carry a $50,000 surety bond at all times. The bond amount is $50,000 but you only pay an annual premium — typically $200-$300/year with good credit. Paid every year to keep your bond active.

Source: MN Statutes 168.27, Subd. 24 | Annual | See full bond guide

All Minnesota dealers must carry minimum liability coverage of $30,000/$60,000 bodily injury and $10,000 property damage. Actual premiums depend on your insurer, location, and business size. Shop around — rates vary widely between providers.

Source: MN Statutes 168.27 | Annual

Minnesota dealer licenses must be renewed every year. The renewal fee is $100. You'll also need to renew your bond and insurance at the same time.

Annual

Before DVS will issue your license, you must submit form PS2421 — a letter from your local city or county confirming your office location is properly zoned for dealer operations. Most municipalities issue this letter at no cost, though some may charge a small administrative fee.

One-time at application

You must have a commercial office space — residential addresses are not allowed. Rent varies widely based on location and how many parking spots are included. A small shared office in a rural area might run ~$1,000/month, while a space with a decent number of parking spots in the metro can reach $2,000–$3,000/month or more. This is typically the largest ongoing cost for most dealers.

Monthly | Wholesale and broker dealers need office only — no lot required

Once licensed, you can purchase dealer plates from DVS to legally drive and transport vehicles without individually titling each one. Each plate costs a couple hundred dollars. How many you need depends on how many vehicles you're moving at a time — most small dealers start with 1–3 plates. Verify current per-plate fees directly with DVS as they can change.

Per plate | Renewed annually with your license

Required only if you have employees. If you're a solo operator you can file an exemption. Costs vary significantly depending on number of employees and insurer.

Annual | Only if applicable

How much does a dealer license cost in Minnesota?

The minimum required costs are: $250 non-refundable application fee to DVS, a $50,000 surety bond (annual premium as low as $200-$300 with good credit), and liability insurance. Total first-year costs for a wholesale or broker dealer typically run $700-$1,000 depending on your situation.

Is the $250 dealer license application fee refundable?

No. The $250 application fee paid to the Minnesota DVS is non-refundable regardless of whether your application is approved or denied.

Are there annual renewal fees?

Yes. Minnesota dealer licenses must be renewed annually. The renewal fee is $100/year. You'll also need to renew your surety bond and insurance each year.

What is the cheapest way to get a dealer license in Minnesota?

The cheapest path is a wholesale dealer license. You don't need a car lot or signage — just a commercial office. With good credit, your first-year costs can be as low as $700-$1,000 covering the application fee, bond premium, and basic insurance. See our no-lot dealer guide for more detail.