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Dealer License by State
Montana used dealer license overview
Unofficial summary – verify with state regulator

Montana Used Vehicle Dealer License Requirements – 2025 Overview

If you regularly buy, sell, or trade motor vehicles in Montana for profit, you are generally required to hold a dealer license issued by the Motor Vehicle Division. This page focuses on typical requirements for used dealers.

Important: This is a general summary only. Always confirm the latest requirements, forms, and fees on the official state web pages before applying.

1. Who licenses dealers in Montana?

The Montana Department of Justice Motor Vehicle Division (MVD) licenses motor vehicle dealers, including new, used, and wholesale operations.

2. Common dealer license types

Common Montana dealer license types include:

  • New vehicle dealer – sells new and used vehicles under franchise agreements.
  • Used vehicle dealer – sells used vehicles directly to the public.
  • Wholesale dealer – sells only to other licensed dealers.
  • Auto auction and other special dealer categories.

3. Education, background checks, and key people

  • Owners and officers must complete the dealer license application and provide personal information for background review.
  • MVD may review criminal history, prior license actions, and financial responsibility before approval.

4. Business location, office, and sign

Montana dealers must maintain an established place of business that typically includes:

  • A permanent business location with a physical Montana address.
  • An enclosed office with adequate space for records and customer transactions.
  • A display lot where inventory offered for sale is kept.
  • A permanent sign in the dealership name, visible from the nearest roadway.
  • Compliance with all local zoning and land-use regulations.

5. Business entity, bond, and insurance

5.1 Entity formation and registration

  • Form your business entity and register it with the Montana Secretary of State, if required.
  • Obtain a federal FEIN and any state tax registrations necessary for collecting transactional taxes.

5.2 Dealer bond and insurance

  • Montana requires a motor vehicle dealer surety bond. The current required bond amount and form are described in the MVD dealer licensing materials.
  • Maintain liability insurance that covers dealer operations and use of dealer plates.

6. High-level application steps

  1. Determine the appropriate Montana dealer license type (new, used, wholesale, auction, etc.).
  2. Form your business entity and obtain tax registrations and FEIN.
  3. Secure a compliant dealership location, including office, lot, and signage, with zoning approval.
  4. Arrange your dealer surety bond and liability insurance.
  5. Complete the Montana Dealer License Application and any supplemental forms required by MVD.
  6. Submit the application, photos, bond, insurance, and fees to the Motor Vehicle Division and prepare for inspection.

7. After approval: ongoing compliance

  • Renew your dealer license, bond, and insurance before expiration.
  • Maintain accurate books and records of all inventory and sales for the period required by Montana law.
  • Notify MVD of any changes in ownership, location, or business name.
  • Follow Montana rules for temporary permits, title processing, and advertising.