How to Get a Dealer License in Alabama (2026)
In Alabama, dealers are licensed by Alabama Department of Revenue, Motor Vehicle Division. The bond is $50,000 (Master Dealer License (all licensees)). Every fact below links to the official page it came from.
Alabama dealer license facts
| Licensing agency | Alabama Department of Revenue, Motor Vehicle Division |
|---|---|
| License name | Master Dealer Licensesource |
| Sales that trigger a license | Confirm with Alabama Department of Revenue, Motor Vehicle Division |
| Surety bond | $50,000 (Master Dealer License (all licensees))source |
| Application / license fees | Master Dealer License: $125; Each additional place of business: $5source |
| Pre-licensing education | Confirm with Alabama Department of Revenue, Motor Vehicle Division |
| Place of business | Dealers must have a permanent, properly zoned business location (not shared/common space, cubicles, or virtual offices), with posted operating hours, a display area for inventory, and a permanent sign meeting minimum size and lettering requirements identifying the location as a motor vehicle dealer.source |
| Wholesale-only license | Alabama does not issue a separate wholesale-only dealer license; the Master Dealer License authorizes operation as a used motor vehicle dealer, motor vehicle wholesaler, and rebuilder under one license.source |
| Last checked | 2026-09-24 |
Steps to get licensed in Alabama
- Pick the license. Alabama issues: Master Dealer License.
- Set up the place of business. Dealers must have a permanent, properly zoned business location (not shared/common space, cubicles, or virtual offices), with posted operating hours, a display area for inventory, and a permanent sign meeting minimum size and lettering requirements identifying the location as a motor vehicle dealer.
- Buy the surety bond. Required amount: $50,000 (Master Dealer License (all licensees)).
- Apply to Alabama Department of Revenue, Motor Vehicle Division. Published fees: Master Dealer License: $125; Each additional place of business: $5.
Flipping without a license in Alabama
We could not find an official sales-count threshold for Alabama. Before selling more than your own personal vehicles, Confirm with Alabama Department of Revenue, Motor Vehicle Division.
Alabama data on CarFlipIQ
FAQ
Who issues dealer licenses in Alabama?
Alabama Department of Revenue, Motor Vehicle Division licenses motor vehicle dealers in Alabama. License types include: Master Dealer License.
How much is the dealer bond in Alabama?
The Alabama dealer surety bond is $50,000 (Master Dealer License (all licensees)). You pay a surety company a yearly premium, not the full bond amount.
How much does a dealer license cost in Alabama?
Published state fees: Master Dealer License: $125; Each additional place of business: $5. Add the bond premium, insurance, and the cost of your place of business.
Is there a wholesale-only dealer license in Alabama?
Alabama does not issue a separate wholesale-only dealer license; the Master Dealer License authorizes operation as a used motor vehicle dealer, motor vehicle wholesaler, and rebuilder under one license.
Price Alabama cars before you buy them
Check any vehicle against live Alabama listings, then decide what to bid.
Not legal advice. Requirements change; confirm with Alabama Department of Revenue, Motor Vehicle Division before you apply. Last checked 2026-09-24.