Motor Vehicle dealer license

A Motor Vehicle Dealer license is required to sell or lease (consumer leases) vehicles to the general public.  Individuals may sell up to five vehicles each year without a dealer license only if they vehicles are titled to them and were operated for personal use.  However, if you acquire just one vehicle with the intention of selling it, you must be licensed as a Motor Vehicle dealer.  

If you only sell vehicles to other licensed dealers, you need to apply for a Wholesale dealer license.

To qualify for a retail dealer license you must meet all of the following requirements

1. A permanent business location—not a residence—with office space, and 12x20-foot display area. Note: If you are selling only motorcycles, display area need only be large enough to display or repair three motorcycles.
2. An outdoor vehicle display lot adjacent to the business office, unless all vehicles are displayed indoors. The minimum size of the vehicle display lot must be equal to the size of a standard parking stall, in accordance with local or county zoning requirements.
   
3. A business sign and posted hours.
   
4. Zoning and local permit approval for the location.
   
5. A sales tax seller permit is required. To obtain one, contact the Department of Revenue at (608) 266-2776 or on their website under Sales and Use Tax.
   
6. A $50,000 surety bond or irrevocable letter of credit. For a list of insurance companies accepting applications for bonds, see Insurance companies that accept applications for bonds.
   
7. A service department or written agreement with a service facility within 50 miles from the selling dealership location.
8. At least one licensed salesperson. That could be you or someone else.
   
9. A two-year lease if you do not own the business real estate.
   
10. A manufacturer/distributor certification of dealer (franchise) if you will be selling new vehicles.
11. Articles of Incorporation or Articles of Organization. If your business is established as a corporation or a limited liability company, the State of Wisconsin requires a photocopy of your Articles of Incorporation or Articles of Organization as filed with the Department if Financial Institutions or the governing body in the state where the corporation was established.
    
12. Dealer license fee, dealer plate fee, individual license fees, and fee to the Department of Financial Institutions.
    
13. You must be at least 18 years old.
14. You must be of good character, and must not have been convicted of a serious crime directly related to the sale of motor vehicles.

Required application forms/documents/fees (DOT/DFI)

1. Motor Vehicle Dealer Two Year License Application MV2186
   • Video tutorial: How to apply for a dealership license part 1
   • Video tutorial: How to apply for a dealership license part 2
2. LFS180 Form and Payment - print/complete/mail this form directly to the Department of Financial Institutions. Questions? Call DFI for assistance, 608-261-7578.
   Mailing Address
   
   Wisconsin Department of Financial Institutions
   Licensed Financial Services Section
   PO Box 7876
   Madison, WI  53707-7876
3. Entity/Owner Statement MV2844
   
4. Business Facilities Statement MV3180
   
5. Motor Vehicle Dealer Service Agreement form MV2085
6. Manufacturer/Importer/Distributor Certification of Dealer MV2131. Note: This is a franchise agreement form and is required only for businesses intending to sell new motor vehicles. Manufacturers may provide you with a similar franchise agreement form in place of the MV2131.
7. Salesperson/Representative License Application form MV2184
8. Buyer's license application - MV2941 (optional)
9. Salvage Buyer Identification (BID) Card Application MV2651 (optional)
10. $50,000 financial coverage - Dealer Bond form MV2511 or Wisconsin Motor Vehicle Irrevocable Letter of Credit form MV1046
    
11. Lessor Bond form MV2509. Note: if your business will be listed as the lessor on the title of any vehicle sold, you must submit this bond in addition to the Dealer Bond listed above.
• Video tutorial: Dealer financial requirements
12. Two-year lease if you do not own the business real estate.
13. Articles of Incorporation or Articles of Organization. If your business is established as a corporation or a limited liability company, the State of Wisconsin requires a photocopy of your Articles of Incorporation or Articles of Organization as filed with the Department if Financial Institutions or the governing body in the state where the corporation was established.
14. Application fees: dealer license, dealer plates, individual license