Tennessee Motor Vehicle Dealer License Requirements – 2026 Overview
Anyone who sells more than five motor vehicles in a 12‑month period in Tennessee must be licensed by the Tennessee Motor Vehicle Commission as a motor vehicle dealer.
1. Regulator and key links
- Regulator: Tennessee Motor Vehicle Commission
- Commission homepage: TN Motor Vehicle Commission
- Minimum dealer requirements (PDF): Minimum Requirements for Tennessee Motor Vehicle Dealers
2. Location and facility requirements
- Permanent business location, not a residence.
- Office with desk, phone, and record storage.
- Display lot for multiple vehicles (minimum spaces set out in the Commission’s “Minimum Requirements” document).
- Permanent sign with letters of the required minimum height, visible from the nearest roadway.
- Posted business hours and compliance inspection before opening.
3. Bond, insurance, and fees
- Tennessee requires a $50,000 motor vehicle dealer surety bond for all dealerships.
- Dealers must maintain liability insurance and provide proof to the Commission.
- Application fee is commonly around $400 for a used or franchise dealer license, plus inspection and re‑inspection fees.
4. Application steps
- Form your entity and register for Tennessee taxes.
- Secure a compliant dealership location and sign.
- Obtain your $50,000 dealer bond and liability insurance.
- Complete the dealer license application and gather required documents.
- Submit the application, bond, insurance, and fees to the Commission.
- Pass the required compliance inspection.