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

Pennsylvania Motor Vehicle Dealer License Requirements – 2025 Overview

In Pennsylvania, you become a licensed dealer through the State Board of Vehicle Manufacturers, Dealers and Salespersons before obtaining a Dealer Identification Number and plates from PennDOT. This overview focuses on typical new and used dealer lot licenses.

Important: This is an unofficial summary, not legal or compliance advice. Statutes, rules, and forms change. Always confirm details with the official Pennsylvania State Board of Vehicle Manufacturers, Dealers & Salespersons resources before you apply or make business decisions.

1. Who regulates dealers in Pennsylvania?

In Pennsylvania, licensing for new and used dealers is overseen by the State Board of Vehicle Manufacturers, Dealers and Salespersons under the Department of State. PennDOT separately issues the Dealer Identification Number (DIN) and dealer plates after you are licensed.

2. Pennsylvania dealer license types

Pennsylvania uses one “lot license” concept with different categories, including:

  • New vehicle dealer
  • Used vehicle dealer
  • Motorcycle dealer
  • Mobile home / trailer dealers
  • Vehicle auction and other specialized categories

You must have the appropriate dealer license before applying to PennDOT for a DIN and dealer plates.

3. Pennsylvania business location and facility requirements

The Vehicle Board expects a permanent, commercially‑zoned facility suitable for operating a dealership.

  • A sales office with desk, chairs, phone, and secure record storage.
  • Display area for multiple vehicles you intend to sell.
  • Permanent exterior business sign displaying the dealership name.
  • Posted business hours during which the public can contact you.
  • A lease, deed, or rental agreement for the premises.
  • Photographs of the office, display area, and sign are typically required with the application or related PennDOT forms.

4. Entity, taxes, background checks, and bond

4.1 Business entity and tax registration

  • Register your business entity with the Pennsylvania Department of State.
  • Obtain your FEIN and register with the Department of Revenue for sales tax.

4.2 Criminal history checks

Owners, partners, and corporate officers provide Pennsylvania State Police criminal history reports and possibly additional background documentation with the application.

4.3 Surety bond requirements

  • Standard Pennsylvania motor vehicle manufacturers / dealers must post at least a $20,000 motor vehicle dealer surety bond as part of licensing.
  • Some related license types (full issuing agent, messenger, salvor, card agent) carry different bond amounts, typically higher or lower than the standard $20,000.

5. Pennsylvania dealer application steps

  1. Decide which dealer category you need (new, used, motorcycle, etc.).
  2. Form your entity and complete tax registrations.
  3. Secure a compliant facility, obtain zoning approval if required, and take photos.
  4. Obtain Pennsylvania criminal history checks for each owner / officer.
  5. Arrange your $20,000 dealer surety bond and liability insurance.
  6. Complete the State Board’s dealer license application in the PALS online licensing system.
  7. After the dealer license is issued, apply to PennDOT for your DIN and dealer plates.

6. After approval: ongoing Pennsylvania compliance

  • Renew your dealer license through PALS at the required interval (commonly every two years).
  • Maintain your bond, insurance, and business facility in good standing.
  • Keep detailed sales records and follow Title 75 requirements for titles, plates, and disclosures.
  • Ensure that all salespersons are separately licensed with the Vehicle Board.