How to Get a Dealer License in Iowa (2026)
In Iowa, dealers are licensed by Iowa Department of Transportation (Motor Vehicle Division). The bond is $75,000 (Motor vehicle dealer license). State law sets a sales count that makes you a dealer; the exact wording is below. Every fact below links to the official page it came from.
Iowa dealer license facts
| Licensing agency | Iowa Department of Transportation (Motor Vehicle Division) |
|---|---|
| License name | Motor Vehicle Dealer License · Used Motor Vehicle Dealer Licensesource |
| Sales that trigger a license | Official threshold: 7 or more sales in a year. Official wording: “A person selling more than six motor vehicles during a twelve-month period”source |
| Surety bond | $75,000 (Motor vehicle dealer license)source |
| Application / license fees | Motor vehicle dealer license, 2-year period (principal place of business): $70source |
| Pre-licensing education | All used motor vehicle dealer license applicants (or at least one owner/officer/member of the business) must attend an 8-hour Auto Dealer Pre-Licensing Education Class before submitting the dealer license application; a short list of entity types (national auction companies, franchised dealers' used-car arms, banks, etc.) are exempt.source |
| Place of business | Requires an office with a dedicated working phone and at least 32 business hours Monday-Friday, a repair facility with an unobstructed area of at least 14 by 24 feet, and a used-vehicle display facility of at least 18 by 30 feet (or an all-weather outside area), plus a zoning-compliance letter and an on-site DOT inspection before licensing.source |
| Wholesale-only license | Confirm with Iowa Department of Transportation (Motor Vehicle Division) |
| Last checked | 2026-09-24 |
Steps to get licensed in Iowa
- Pick the license. Iowa issues: Motor Vehicle Dealer License, Used Motor Vehicle Dealer License.
- Set up the place of business. Requires an office with a dedicated working phone and at least 32 business hours Monday-Friday, a repair facility with an unobstructed area of at least 14 by 24 feet, and a used-vehicle display facility of at least 18 by 30 feet (or an all-weather outside area), plus a zoning-compliance letter and an on-site DOT inspection before licensing.
- Finish the required course. All used motor vehicle dealer license applicants (or at least one owner/officer/member of the business) must attend an 8-hour Auto Dealer Pre-Licensing Education Class before submitting the dealer license application; a short list of entity types (national auction companies, franchised dealers' used-car arms, banks, etc.) are exempt.
- Buy the surety bond. Required amount: $75,000 (Motor vehicle dealer license).
- Apply to Iowa Department of Transportation (Motor Vehicle Division). Published fees: Motor vehicle dealer license, 2-year period (principal place of business): $70.
Flipping without a license in Iowa
Official threshold: 7 or more sales in a year. Official wording: “A person selling more than six motor vehicles during a twelve-month period”source Selling past that line without a license is curbstoning.
Iowa data on CarFlipIQ
FAQ
Who issues dealer licenses in Iowa?
Iowa Department of Transportation (Motor Vehicle Division) licenses motor vehicle dealers in Iowa. License types include: Motor Vehicle Dealer License, Used Motor Vehicle Dealer License.
How many cars can I sell in Iowa without a dealer license?
Official threshold: 7 or more sales in a year. Official wording: "A person selling more than six motor vehicles during a twelve-month period" Confirm how it applies to you with Iowa Department of Transportation (Motor Vehicle Division).
How much is the dealer bond in Iowa?
The Iowa dealer surety bond is $75,000 (Motor vehicle dealer license). You pay a surety company a yearly premium, not the full bond amount.
How much does a dealer license cost in Iowa?
Published state fees: Motor vehicle dealer license, 2-year period (principal place of business): $70. Add the bond premium, insurance, and the cost of your place of business.
Do I need to take a course to get a Iowa dealer license?
All used motor vehicle dealer license applicants (or at least one owner/officer/member of the business) must attend an 8-hour Auto Dealer Pre-Licensing Education Class before submitting the dealer license application; a short list of entity types (national auction companies, franchised dealers' used-car arms, banks, etc.) are exempt.
Price Iowa cars before you buy them
Check any vehicle against live Iowa listings, then decide what to bid.
Not legal advice. Requirements change; confirm with Iowa Department of Transportation (Motor Vehicle Division) before you apply. Last checked 2026-09-24.