How to Get a Dealer License in Tennessee (2026)
In Tennessee, dealers are licensed by Tennessee Motor Vehicle Commission (Dept. of Commerce & Insurance). The bond is $50,000 (Motor Vehicle Dealer). 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.
Tennessee dealer license facts
| Licensing agency | Tennessee Motor Vehicle Commission (Dept. of Commerce & Insurance) |
|---|---|
| License name | Motor Vehicle Dealersource |
| Sales that trigger a license | Official threshold: 6 or more sales in a year. Official wording: “more than five (5) motor vehicles in one (1) year in the State of Tennessee”source |
| Surety bond | $50,000 (Motor Vehicle Dealer)source |
| Application / license fees | Initial dealer license application: $600source |
| Pre-licensing education | Confirm with Tennessee Motor Vehicle Commission (Dept. of Commerce & Insurance) |
| Place of business | Dealer must have a permanent facility (no temporary facilities or private residences) primarily used for selling/servicing vehicles, at least 288 square feet with a functioning restroom, plus an exclusive display lot of compacted gravel or similar (not grass) accommodating 15 vehicles and 3 customer parking spots.source |
| Wholesale-only license | Confirm with Tennessee Motor Vehicle Commission (Dept. of Commerce & Insurance) |
| Last checked | 2026-09-24 |
Steps to get licensed in Tennessee
- Pick the license. Tennessee issues: Motor Vehicle Dealer.
- Set up the place of business. Dealer must have a permanent facility (no temporary facilities or private residences) primarily used for selling/servicing vehicles, at least 288 square feet with a functioning restroom, plus an exclusive display lot of compacted gravel or similar (not grass) accommodating 15 vehicles and 3 customer parking spots.
- Buy the surety bond. Required amount: $50,000 (Motor Vehicle Dealer).
- Apply to Tennessee Motor Vehicle Commission (Dept. of Commerce & Insurance). Published fees: Initial dealer license application: $600.
Flipping without a license in Tennessee
Official threshold: 6 or more sales in a year. Official wording: “more than five (5) motor vehicles in one (1) year in the State of Tennessee”source Selling past that line without a license is curbstoning.
Tennessee data on CarFlipIQ
FAQ
Who issues dealer licenses in Tennessee?
Tennessee Motor Vehicle Commission (Dept. of Commerce & Insurance) licenses motor vehicle dealers in Tennessee. License types include: Motor Vehicle Dealer.
How many cars can I sell in Tennessee without a dealer license?
Official threshold: 6 or more sales in a year. Official wording: "more than five (5) motor vehicles in one (1) year in the State of Tennessee" Confirm how it applies to you with Tennessee Motor Vehicle Commission (Dept. of Commerce & Insurance).
How much is the dealer bond in Tennessee?
The Tennessee dealer surety bond is $50,000 (Motor Vehicle Dealer). You pay a surety company a yearly premium, not the full bond amount.
How much does a dealer license cost in Tennessee?
Published state fees: Initial dealer license application: $600. Add the bond premium, insurance, and the cost of your place of business.
Price Tennessee cars before you buy them
Check any vehicle against live Tennessee listings, then decide what to bid.
Not legal advice. Requirements change; confirm with Tennessee Motor Vehicle Commission (Dept. of Commerce & Insurance) before you apply. Last checked 2026-09-24.