Kentucky Motor Vehicle Dealer License Requirements – 2025 Overview
The Kentucky Motor Vehicle Commission (MVC) licenses new and used motor vehicle dealers in Kentucky. This overview summarizes the core requirements for establishing a compliant dealership in the state.
Important: This is an unofficial summary. Always consult the current Kentucky Motor Vehicle Commission dealer requirements and application forms before applying.
1. Who regulates dealers in Kentucky?
Dealer licenses are issued and regulated by the Kentucky Motor Vehicle Commission.
- Regulator: Kentucky Motor Vehicle Commission (MVC)
- Commission home page: Kentucky Motor Vehicle Commission – Official site
- Dealer requirements outline: Requirements for a Kentucky Motor Vehicle Dealer License (PDF)
2. Kentucky dealer license types
Kentucky licenses multiple categories of dealers, including:
- New motor vehicle dealers.
- Used motor vehicle dealers.
- Wholesale and auction dealers.
The dealer requirements document and application forms explain which license type fits your business model and what additional criteria apply.
3. Established place of business and facility standards
Kentucky requires dealers to maintain an established place of business that meets minimum standards.
- An office where sales are conducted and records are kept.
- A display lot or customer parking area of at least 2,000 square feet with a hard surface such as gravel, asphalt, or concrete.
- The display lot must not permit public through traffic and must be used exclusively for displaying vehicles and customer parking.
- A business name that clearly identifies the operation as a motor vehicle dealer (for example, including terms like “Auto Sales”).
- Zoning approval and any required local permits.
4. Business setup, bond, and insurance
4.1 Entity and tax registration
- Form your entity (sole proprietorship, partnership, LLC, corporation, etc.).
- Register with the Kentucky Secretary of State if required.
- Obtain a Kentucky sales and use tax permit and a Federal Employer Identification Number (FEIN).
4.2 Dealer bond
The Commission requires a surety bond as part of the dealer license process. Guidance indicates a bond range from $15,000 to $100,000, with the specific amount determined by the Commission based on financial information and the type of dealer license. Some auction dealers may be required to carry higher bond amounts.
4.3 Insurance
Kentucky dealers must maintain appropriate liability and garage insurance coverages. Proof of insurance is submitted with the application and must remain in force for the duration of the license.
5. Kentucky dealer application process
The dealer requirements outline and application form TC 98-1 provide step-by-step instructions. A typical process includes:
- Review the dealer requirements outline from the Commission.
- Secure a compliant established place of business, including office and 2,000-square-foot lot.
- Form your entity and obtain tax registrations.
- Prepare a financial statement and arrange a surety bond in the amount set by the Commission.
- Obtain the dealer application form (such as TC 98-1) and complete all sections accurately.
- Submit the application, fees, bond, insurance, financials, and supporting documents to the MVC.
- Prepare for any required inspection or Commission review before license approval.
6. After approval: ongoing Kentucky dealer compliance
- Renew your dealer license, surety bond, and insurance as required by the Commission.
- Maintain your facility and lot in compliance with Kentucky standards.
- Follow rules for title processing, temporary tags, and record-keeping.
- Stay current with updates in the Commission’s dealer handbook and requirements.