CarFlipIQ

Dealer License Classes Explained: Names, Wholesale vs Retail

Most states have no numbered dealer license classes. Michigan and Massachusetts do. Ten real license names by agency, and when wholesale applies.

Marcio AzevedoUpdated 6 min read

Quick answer. Only a few states label dealer licenses with a class: Michigan uses Class B for used vehicle dealers and Class W for wholesalers, and Massachusetts uses a Class 2 Used Car Dealer's License. Most states name the license by type instead, such as Texas's Independent Motor Vehicle GDN or Florida's Independent Motor Vehicle Dealer (VI). A separate wholesale license exists in many states and lets you sell only to other dealers. Check your own state agency for the exact name, because the same word means different things across state lines.

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In this article (5 sections)

There is no national set of dealer license classes. A few states, such as Michigan (Class B, Class W) and Massachusetts (Class 2), label licenses with a class. Most name the license by type: "Independent Motor Vehicle Dealer," "Used Vehicle Dealer License," "Dealer Certificate." If a Google result or a forum thread gives you a letter or number, it only applies in the state it came from.

This matters because the name on your application decides what you can legally do: buy at dealer-only auctions, sell to the public, or both. Here is what the official sources say, state by state, with the page each fact came from. Every license name below was read on an official state source and last checked on 2026-09-24.

LocalIQ™ market snapshot

What top flip candidates are asking right now

ModelListingsMedian asking price
GMC Sierra 1500632$29,972
Honda Civic5,396$15,000
Honda Accord4,176$15,999
Ford F-1503,134$24,000
Toyota Corolla3,040$14,500
Nissan Sentra3,004$9,880
Toyota Camry2,510$17,082
Hyundai Elantra2,396$9,499

LocalIQ™ asking-price median · 24,288 listings · updated every 6 hours. National, last 8 model years; asking price is your resale ceiling.

What are real examples of dealer license names?

These ten show how much the labels differ. The agency and license names come from the state's own statute, form or agency page, linked in the right column.

StateAgencyLicense name(s)Source
AlabamaDepartment of Revenue, Motor Vehicle DivisionMaster Dealer LicenseAla. Admin. Code 810-5-12
ArizonaADOT Motor Vehicle DivisionUsed Motor Vehicle Dealer License; Wholesale Motor Vehicle Dealer LicenseARS 28-4301
CaliforniaDMV, Occupational LicensingUsed Vehicle Dealer License; Dealer Wholesale-Only LicenseDMV form OL 248B
FloridaFLHSMVIndependent Motor Vehicle Dealer (VI); Wholesale Motor Vehicle Dealer (VW)Fla. Stat. 320.27
MassachusettsRegistry of Motor Vehicles / local licensing authorityClass 2 Used Car Dealer's LicenseM.G.L. c. 140, s. 58
MichiganDepartment of State, Business Licensing and RegulationClass B (Used Vehicle Dealer); Class W (Wholesaler Vehicle License)Dealer Manual, ch. 1
North CarolinaDMV, License and Theft BureauMotor Vehicle Dealer; WholesalerG.S. 20-286
OregonDMV (ODOT)Vehicle Dealer CertificateOregon license directory
PennsylvaniaDepartment of State, State Board of Vehicle Manufacturers, Dealers and SalespersonsDealer LicenseBoard fee notice
TexasTxDMVIndependent Motor Vehicle GDN; Wholesale Dealers GDNTxDMV

Two things stand out. First, "license" is not even the universal word: Oregon issues a certificate, Texas a GDN (general distinguishing number). Second, the issuing agency is rarely the same type of office. It is a revenue department in Alabama, a licensing board in Pennsylvania, a motor vehicle agency in most others.

Wholesale vs retail: which license do you need?

A retail used-car dealer license lets you sell to the public. A wholesale license, in states that have one, limits you to selling to other dealers. The tradeoff is usually lighter facility rules. Per the state sources in our data:

  • Texas: wholesale dealers may sell only to other licensed dealers, not retail purchasers, and are not required to have a five-vehicle display area (TxDMV).
  • Michigan: Class W wholesalers buy and sell used vehicles from and to licensed used vehicle dealers only (Dealer Manual).
  • Florida: the Wholesale Motor Vehicle Dealer (VW) license is for people who buy and sell exclusively at wholesale or with motor vehicle auctions, and wholesale dealers are exempt from the display requirements (Fla. Stat. 320.27).
  • Delaware: wholesale dealers may buy and sell only to other dealers or licensed auctions, may operate from a private residence, and may not sell to retail buyers (state source linked on the Delaware guide).

Some states do not split the two. Alabama's Master Dealer License authorizes operation as a used motor vehicle dealer, motor vehicle wholesaler and rebuilder under one license, and New Jersey's MVC dealership page lists new and used, used, leasing and boat dealership licenses but not a wholesale-only license. Hawaii's law defines a used motor vehicle dealer as one who sells used vehicles at wholesale or retail, or both, under the same license.

If you plan to buy at dealer auctions and sell on Facebook Marketplace or Craigslist to the public, a wholesale-only license does not cover the second half. Read the definition in your state's statute before you apply.

Are there other license types that sound like a class?

Yes, and this is where "near me" searches go wrong. Several states carve out categories inside the dealer family:

  • Motorcycle or small-vehicle dealer: Alaska lists a motorcycle-only dealer bond of $25,000 against $100,000 for a general dealer. California's bond for motorcycle and all-terrain-vehicle-only dealers is $10,000 against $50,000 for a standard vehicle dealer.
  • New vs used: North Dakota lists separate New and Used Motor Vehicle Dealer Licenses. West Virginia lists a Used Motor Vehicle Dealer (Duc) and a New & Used Motor Vehicle Dealer (D).
  • Auction dealer: Nebraska lists an Auction Dealer bond of $100,000, against $50,000 for a motor vehicle or trailer dealer.

Those bond amounts are from the state sources in our dataset. They are the price of a category, not a ranking of which license is "higher."

How do you find your state's exact license name?

  1. Open the dealer license guides and pick your state. Each page shows the agency, the license names, and the source for each fact.
  2. Follow the agency link and confirm the name against the current application form. States rename and renumber forms.
  3. If the guide says "Confirm with agency" for something, that means we could not verify it on an official page and did not fill it in from a bond seller or a blog.

For the cross-state view, the dealer license list by state puts agency, license name, bond range and sales threshold in one table. For the question of whether you need one at all, see how many cars you can flip without a dealer license.

Where this fits in a flip

The license is what unlocks dealer-only inventory and lets you wholesale your misses to other dealers. It does not tell you what to bid. Run the all-in cost through the max bid calculator before you decide a license is worth the bond and fees, and use the full guide to getting a dealer license for the application steps.

Frequently Asked Questions

What are the dealer license classes?

There is no national set of classes. Michigan uses Class B (used vehicle dealer) and Class W (wholesaler). Massachusetts uses a Class 2 Used Car Dealer's License. Most other states name the license by type, for example Texas's Independent Motor Vehicle GDN and Florida's Independent Motor Vehicle Dealer (VI).

What is a dealer license class near me?

The class or license name is set by your state's agency, not your city. Find your state in the dealer license guides, then confirm the exact name on the agency page linked there.

What is the difference between a wholesale and a retail dealer license?

A wholesale license, where a state offers one, covers selling only to other licensed dealers or dealer auctions. A retail (used dealer) license also lets you sell to the public. States such as Texas, Michigan and Wisconsin state that wholesalers cannot sell to retail buyers.

Does every state have a separate wholesale dealer license?

No. Alabama's Master Dealer License covers used dealer, wholesaler and rebuilder under one license, and New Jersey's MVC dealership page does not list a wholesale-only license. Many other states, including Florida, Texas and North Carolina, do license wholesalers separately.

Where is the full list of dealer licenses by state?

See the dealer license list by state, which shows the agency, license name, bond range and sales threshold for every state we have verified.

How we get these numbers

Market figures come from LocalIQ™, CarFlipIQ's index of asking prices on local used-car listings. We report medians rather than averages, so a few outlier listings can't drag the number, and a model only appears once it has at least 10 listings behind it. Treat the median asking price as your resale ceiling. How we get our numbers →

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