Kansas Used Vehicle Dealer License Requirements – 2025 Overview
Kansas requires a motor vehicle dealer license if you regularly sell vehicles for profit. This page summarizes typical requirements for used motor vehicle dealers regulated by the Kansas Department of Revenue.
Important: This is a general summary. Always confirm forms, fees, and rules on the official state website before you apply.
1. Who licenses used vehicle dealers in Kansas?
Kansas motor vehicle dealers are licensed by the Kansas Department of Revenue, Division of Vehicles, through the Dealer Licensing Bureau.
- Regulator: Kansas Department of Revenue – Division of Vehicles, Dealer Licensing Bureau
- Official dealer licensing hub: https://www.ksrevenue.gov/dovdealer.html
2. Common dealer license types
Common Kansas dealer license types include:
- New vehicle dealer
- Used vehicle dealer
- Wholesale dealer
- Motorcycle or trailer dealer
3. Education, background checks, and key personal requirements
- Kansas may require dealer principals to attend an orientation or training and to disclose prior license or criminal history.
- Applicants must be at least 18 and able to demonstrate financial responsibility and good character.
4. Business location, office, and sign
The Kansas Dealer Licensing Bureau requires an established place of business, generally including:
- A permanent business location with indoor office space.
- An operable telephone in the business name.
- A display lot where inventory is offered for sale.
- A permanent sign in the business name, visible from the roadway.
- Proper zoning approval for the type of vehicles you sell.
5. Business entity, bond, and insurance
5.1 Business entity and tax registration
- Form your entity and register with the Kansas Secretary of State if required.
- Obtain your federal FEIN and Kansas sales tax registration number; the business name must match your dealer application.
5.2 Dealer bond
- Kansas law requires dealers to maintain a surety bond. Public guidance often refers to bond amounts around $30,000–$50,000, depending on effective dates and license details; verify the exact current bond amount with the Dealer Licensing Bureau.
5.3 Insurance
- Maintain garage liability or similar coverage that meets state requirements.
6. High-level application steps
- Form your business entity and obtain tax registrations.
- Secure an established place of business with office, lot, sign, phone, and zoning clearance.
- Arrange your dealer surety bond and liability insurance.
- Complete the Kansas Dealer License Application and required affidavits.
- Submit the application, photos, zoning letter, bond, insurance, and fees to the Dealer Licensing Bureau.
- Prepare for an inspection of the business location, if scheduled.
7. After you are licensed: ongoing compliance
- Renew your Kansas dealer license and bond on schedule.
- Maintain proper records for all purchases, sales, titles, and temporary tags.
- Comply with Kansas tax clearance requirements and update the Bureau on ownership or location changes.