Established salesroom
You must have 96 square feet or larger of floor space in a permanent, enclosed building, separate and apart from any living quarters, residence, or other business. It must also have a separate entrance.
Dealer's Corner
How to get your NC dealer license.
Step-by-step guide with helpful links to assist you in getting your North Carolina used car dealer license. The state's checklist tells you what. We tell you how, with the partners NC dealers actually use.
Ultimate Checklist
The full NC auto dealer license checklist.
Ten things every NC dealer needs lined up before the Highway Patrol's inspecting officer shows up.
- Established salesroom or office.Retail dealers need a salesroom. Wholesale dealers need an established office.
- Compliant zoning.Salesroom or office must satisfy state and local zoning rules.
- Dealership sign.Block letters at least 3 inches tall designating the business name.
- Physical inspection.An officer from the State Highway Patrol's Investigative Services Unit (ISU) must inspect and approve the location.
- Real physical address.Application must accurately describe the physical location, not a PO Box.
- Articles of incorporation.If incorporated, articles must be filed with the NC Secretary of State.
- Assumed name on file.File the business name with the Register of Deeds in your NC county.
- Liability insurance.Comprehensive liability or Garage Coverage policy that covers dealer plates.
- $50,000 surety bond.Corporate surety bond required, plus $25K for each additional salesroom.
- 12-hour pre-licensing course.Approved PLE course completed within the past 12 months.
Pulled straight from the official sources. Bookmark them if you want the originals: NCSHP New Dealer Packet (PDF) · ISU Dealer Documents
Zoning requirements
Your dealership office or building must meet all state, county, and municipal ordinances and regulations.
Tip
If you're unsure about a location, contact the ISU officer for the county where you plan to open to preapprove the space before you sign a lease.
Dealership sign
You must have a dealership sign with block letters at least three inches in height. (You'll want it bigger than that. Trust us.)
Step Two
Attend a 12-hour pre-licensing course.
Take it early. The class itself walks you through every other step on this page, plus the do's and don'ts of selling cars in North Carolina.
To get your dealer license you must show proof that within the last twelve (12) months you have completed an approved 12-hour pre-licensing class.
We highly recommend you take the NC dealer class early in the process. The class teaches you each step on this page plus a long list of laws and regulations on selling cars in North Carolina. Doing it first makes everything else easier.
Step Three
Bond and insurance.
The state needs proof you can cover yourself if a deal goes sideways. Two pieces: a surety bond and dealer-grade liability insurance.
Corporate surety bond
Furnish a corporate surety bond or cash bond. Plus $25,000 for each additional salesroom.
Liability insurance
Comprehensive liability or a Garage Coverage Form policy / binder number that covers dealer plates. Your PLE class covers the rules of driving on a dealer plate.
Step Four
Business registration & licenses.
The state needs proof your business is real and on file with the state.
Register your business
The state must have evidence of an assumed name being filed with the Register of Deeds in your NC county.
Articles of incorporation
If your business is a corporation, attach the first page of the corporate charter to your dealer license application.
NC Secretary of State
Free guides to walk you through it
01
Choose a Business Structure
sosnc.gov
02
Choose a Business Name
sosnc.gov
03
Register Your Business
sosnc.gov
Pick a name first? Try our Free Dealership Naming Tool. It generates ideas from real Carolina naming patterns and checks domain availability.
Two ways to form
Pay to skip the paperwork, or get free expert help.
LegalZoom
Streamlined business formation. Picks the right entity for you and files everything online.
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Small Business Advisors is a free service for anyone starting a small business in North Carolina. One-on-one phone consultations to help you navigate the headaches.
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Step Five
Criminal background requirements.
The state may deny an application based on a criminal conviction under N.C.G.S. § 20-294 and § 93B-8.1. They weigh several factors when reviewing.
What goes into the review.
- Seriousness and date of the crime
- Applicant's age at the time
- Circumstances and relevance to dealer duties
- Rehabilitation and employment records
- Participation in treatment programs
- Certificate of Relief, if applicable
- Subsequent crimes and character references
Once these five steps are done and an ISU officer has approved your site, submit ISU-400 (notarized), ISU-405, ISU-409 (completed by your surety company, with its power of attorney), and ISU-426 (notarized) along with your fees. Provide originals only, completed legibly. Incomplete or illegible forms won't be processed.
FAQ
New dealer questions we get every week.
How much does it cost to get a dealer license in NC?
The NC Dealer License is $115.50 a year and is issued for two years, so plan on $231. Dealer plates are $46.25 each per year for your first five and $23.13 each per year after that. Each plate also carries a Regional Transit Authority tax of $1 in Randolph County or $17 in Wake, Orange, and Durham counties. There are other expenses tied to the requirements above: the surety bond, registering your business, the PLE class, signing a lease on an office, insurance, etc. Budget more than just the license fee.
Why do I need a North Carolina dealer's license?
A dealer license is required if you sell more than 5 motor vehicles in a 12-month period, or if you attempt to arrange the sale of, negotiate on behalf of, or exchange 5 or more motor vehicles in a 12-month period.
What's the difference between a Retail and a Wholesale dealer license?
Wholesale dealer license is limited to selling vehicles only to other licensed car dealers. You may not sell to the public. A wholesale license does not require an established salesroom open to the public with a separate entrance. You can have an office within an office building.
Retail license allows you to sell to the public and to other licensed dealers. Retail dealers must have an established salesroom (see Step 1 above for the physical location requirements).
What forms are required for final license approval?
Provide original forms completed legibly. Incomplete or illegible forms will not be processed. Required: ISU-400 (Notarized), ISU-405, ISU-409 (completed by your surety company, with its power of attorney), ISU-426 (Notarized), your 12-hour pre-licensing certificate dated within the past 12 months, zoning approval letter, Garage Liability Insurance Certificate or Accord form, and (if Corporation/LLC) copies of your Articles of Incorporation or Organization and Secretary of State filing. Source: ISU-415 (Rev. 02/26).
How long does the whole process take?
Most dealers complete the process in 30 to 60 days, though it can move faster if you start the PLE class first and have your location lined up before signing a lease. The bottlenecks are usually inspection scheduling, business registration, and waiting on bond approval.
More Internet Resources
Official sources for becoming an NC auto dealer.
Always verify against the most current information. Here's where to look.
Carolina Dealer Training
NC PLE classes, North Carolina news and law updates, and more.
Visit website →ISU Dealer Documents
Every current ISU dealer form, plus the New Dealer Packet and renewal packets.
Visit website →NC Title Manual (PDF)
Reference guide for titling and registering vehicles in North Carolina.
Download PDF →Investigative Services Unit
The State Highway Patrol unit that licenses NC dealers and inspects new locations. It took over from the DMV License & Theft Bureau.
Visit website →
ISU Troop Offices
Find your NC Highway Patrol inspection officer.
Your site has to be approved before you send in your application. Call the troop office for the county where you plan to open, or go to the ISU Portal, choose Request A Service, select Other, and say you're starting a new dealership. You can upload your zoning verification letter there. Save the Inquiry number, and an officer will contact you.
AGreenville(252) 565-1321
BFayetteville(910) 728-4601
CRaleigh(984) 268-5000
DGraham(336) 270-2290
EWinston-Salem(336) 793-9622
FNewton(704) 325-5535
GAsheville(828) 348-5780
HHuntersville(704) 331-3300
Dealer Section offices: 4121 New Bern Ave., Suite 150, Raleigh, and 12101 Mt. Holly-Huntersville Rd, Huntersville, Monday through Friday, 8 a.m. to 5 p.m. Mail goes to NC State Highway Patrol, Investigative Services Unit - Dealer Section, 3129 Mail Service Center, Raleigh, NC 27697-3129. Dealer Services: (919) 757-0756.
Once you're licensed
Three things you'll need to actually sell cars.
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