How to Get a Dealer License in Illinois: Cost & Requirements

Last updated: August 18, 2026

Illinois has a timing quirk worth thousands of dollars. The dealer license is $1,000 — but apply after June 15 and it is prorated to $500. Either way it expires on December 31. The state also runs the required training class itself, and it will not issue a licence at all if your only goal is getting into dealer auctions.

Five Vehicles, and the Calendar Matters Twice

The threshold is straightforward: no person other than a licensed new vehicle dealer may engage in the business of selling or dealing in, on consignment or otherwise, 5 or more used vehicles of any make during the year. Four is fine; the fifth requires a licence.

The calendar then matters a second time, on price. The fee is $1,000 before June 15 and $500 after it — and because every licence expires by operation of law on December 31 regardless of issue date, a licence bought in July costs half as much and simply runs a shorter first year. If you are close to the line in spring, waiting a few weeks is worth $500.

What It Costs

Item	Cost	Notes
Used vehicle dealer licence (before June 15)	$1,000	Plus $50 per additional location
Used vehicle dealer licence (after June 15)	$500	Prorated; plus $25 per additional location
Bond or Certificate of Deposit	$50,000	Per location
Liability insurance	$100,000 / $300,000 / $50,000	Per person / per crash / property damage
Illinois LLC	$150	Filed with the Secretary of State

Note the bond is per location, not per dealer — so a second lot means a second $50,000 bond, unlike states that let a single larger bond cover every site.

The State Teaches the Class Itself

Illinois does not approve private course vendors the way Texas or Georgia do. The Secretary of State’s Vehicle Services Department runs the training, and the logistics are strict:

• The class runs a full day, 8 a.m. to 5 p.m.
• Your licence fee and a copy of the completed dealer application must reach their office at least two weeks before your scheduled class. If they do not have it, you will not be permitted to attend.
• The cheque is deposited on receipt — before your licence is approved.
• Bring paper, a pen, and your confirmation receipt.

Employees of an already-licensed dealership can attend for training only, without the application or fee, if they bring a letter on company letterhead signed by the licensee.

Two Ways Illinois Will Refuse You Outright

These are worth reading before you spend anything:

• Illinois does not issue a wholesale licence, an auction licence, or a broker licence — those licence types simply do not exist here. And a dealer licence will not be issued for the sole purpose of attending dealer auctions. If that is your plan, you will not even be allowed to attend the training.
• A forcible felony conviction within the last 10 years, or a rescinded or suspended right to sell vehicles based on police action, means you will be denied and cannot attend training.

How to Get Licensed, In Order

1. Form the entity so the application, bond and insurance all carry one name.
2. Secure your established place of business and confirm local zoning.
3. Bind the $50,000 bond or CD for each location, and get liability cover at $100,000/$300,000/$50,000.
4. Complete the dealer licence application and decide your timing — after June 15 halves the fee.
5. Register for a training class and send the fee plus a copy of the application at least two weeks ahead.
6. Attend the full-day class, then file the original application and all supporting documents with the Dealer Licensing Section.

Frequently Asked Questions

How many cars can I sell in Illinois without a dealer license?

Four. The Illinois Vehicle Code says no person other than a licensed new vehicle dealer shall engage in the business of selling or dealing in, on consignment or otherwise, 5 or more used vehicles of any make during the year. The fifth sale is what requires the license.

How much does an Illinois dealer license cost?

$1,000 for your established place of business plus $50 for each additional location. If you apply after June 15, the fee is prorated to $500 plus $25 per additional location. Every license expires by operation of law on December 31 of the year it was granted, no matter when you got it.

Do I have to take a class to get an Illinois dealer license?

Yes. A certification from the prelicensing education program must accompany your application, and the class is run by the Secretary of State’s Vehicle Services Department. It runs a full day, from 8 a.m. to 5 p.m., and your license fee and a copy of your application must reach their office at least two weeks before the class date.

How much is the Illinois dealer bond?

$50,000, and it is required for each location at which you intend to act as a used vehicle dealer. Illinois accepts either a surety bond or a Certificate of Deposit. You also need liability insurance of $100,000 per person, $300,000 per crash, and $50,000 for property damage.

Taxes, licensing and hiring are covered in our full guide to starting a business in Illinois.

Sources

Source	What It Covers
625 ILCS 5/5-102 — Used vehicle dealers	Five-vehicle threshold, $1,000/$500 fee and proration after June 15, $50 and $25 additional locations, $50,000 bond or CD per location, insurance minimums, December 31 expiration, prelicensing certification
Illinois Secretary of State — Dealer Training	Class run by the state, 8 a.m. to 5 p.m., two-week document deadline, fee deposited on receipt, no wholesale/auction/broker licence, auction-only refusal, forcible felony bar
Illinois Secretary of State — Dealers and Remitters	Dealer Licensing Section contact and process, temporary registration plate handling