North Carolina Used Motor Vehicle Dealer License Requirements – 2025 Overview

1. Who regulates dealers in North Carolina?

Motor vehicle dealers in North Carolina are regulated by the NCDMV. The division publishes forms, minimum license requirements, and a detailed Dealer Regulation Manual.

• Regulator: North Carolina Division of Motor Vehicles (NCDMV)
• Dealer resources hub: Official NCDMV – Dealer Resources
• Minimum dealer license requirements: NCDMV publishes a “Minimum Dealer License Requirements” document (form LT‑415 or similar).
• Dealer regulation manual: NCDMV also publishes a Dealer Regulation Manual with detailed requirements and rules.

2. Pre‑licensing education

Applicants for a North Carolina used motor vehicle dealer license are generally required to complete an NCDMV‑approved pre‑licensing course.

• The pre‑licensing course is typically a 12‑hour class focused on dealer law, forms, and compliance.
• Applicants must complete the course within a specified period (often within 12 months) before the license application.
• A certificate of course completion is submitted with the application.

3. Business location, office, and sign

North Carolina requires dealers to operate from a permanent place of business that meets minimum standards. While specifics are detailed in NCDMV documents, typical requirements include:

• A permanent business location with a physical address in North Carolina.
• An enclosed office where dealer records are kept and customers can be served.
• A display lot suitable for vehicles offered for sale.
• A visible sign displaying the dealership name, which meets any local sign ordinances and NCDMV expectations.

NCDMV will inspect the location as part of the licensing process to ensure all minimum dealer license requirements are met.

4. Business entity, assumed names, insurance, and bond

4.1 Business entity and trade name

• Form your business entity (sole proprietor, partnership, LLC, corporation) and file any necessary documents with the North Carolina Secretary of State.
• Record assumed business names (DBAs) with the county register of deeds, where required.

4.2 Insurance

• Obtain comprehensive liability or garage insurance that covers dealer operations and dealer plates.
• Provide a certificate of insurance that indicates how many dealer plates are covered and lists NCDMV as certificate holder as specified in NCDMV forms.

4.3 Dealer surety bond

• Purchase a dealer surety bond in the amount required by North Carolina law for your license type (bond amounts are specified in NCDMV documents and statute).
• Submit the bond on the correct NCDMV form with power of attorney from the surety company.

5. Application and inspection process

The NCDMV dealer application process is outlined in the Minimum Dealer License Requirements and Dealer Regulation Manual. A typical sequence for a used dealer includes:

1. Complete the pre‑licensing education course and obtain the certificate of completion.
2. Form your business entity and register any assumed names.
3. Secure a compliant place of business, including office, lot, and sign.
4. Obtain liability insurance and a dealer surety bond in the required amounts.
5. Complete the NCDMV dealer license application forms, ensuring all ownership and contact information is accurate.
6. Submit your application package, including fees and required documents, to NCDMV.
7. Schedule and pass the NCDMV inspection of your place of business.

6. Ongoing dealer compliance in North Carolina

Once licensed, North Carolina dealers must:

• Renew their dealer license, bond, and insurance on schedule.
• Keep their business location, sign, and office in compliance with NCDMV rules.
• Follow state and federal requirements for titling, temporary tags, odometer disclosures, and financing disclosures.
• Maintain accurate records and cooperate with NCDMV audits or inspections.
• Complete any continuing education requirements for renewals, if applicable.

7. Official North Carolina resources

• Official NCDMV – Dealer Resources
• Look for documents such as Minimum Dealer License Requirements (LT‑415) and the Dealer Regulation Manual on the NCDMV dealer resources page.