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

Last updated: August 18, 2026

Kentucky is the state where a board votes on your dealership. The Motor Vehicle Commission meets the second Friday of each month, and your complete application has to land ten working days before it to make the agenda. Miss the window or leave a blank and you wait another month. Kentucky also tells you what your business may be called, and wants a 2,000 sq ft lot and a 100 sq ft office — with a fax machine.

The Monthly Meeting Is the Real Deadline

Kentucky does not process dealer applications continuously. The Commission meets on the second Friday of each month, and to get on that agenda your completed application must be received no later than ten working days before — excluding weekends, holidays, and the day of the meeting itself.

The consequence is blunt: an incomplete application is returned to the applicant. A single missing document does not get corrected in a phone call; it costs you the meeting, and the next one is a month away. That makes the completeness of your first submission worth far more in Kentucky than in states that process on a rolling basis.

What It Costs

Item	Cost	When
Application fee	$175	With the application
Criminal background check	$25 per owner listed	With the application
Dealer licence	$200 per licence type	On approval
Salesperson licence	$40	Required for owners too
Paper application by mail	$7	Free to print from mvc.ky.gov
Surety bond	Not less than $25,000, if required	Commission’s discretion, based on your financials
Kentucky LLC	$40	Annual report $15

Cheques go to the “Kentucky State Treasurer.” A change of ownership requires a new application and new fees — it is not a transfer.

The nine licence types each carry their own $200: new (franchised), used (includes wholesale), leasing, supplemental lot, wholesale on its own, auction operator, motorcycle, restricted/mobility, and restricted/automotive recycling.

The Money Test Comes Before the Bond

Kentucky does not impose a flat bond on everyone. Instead it examines your finances, and the bond is what happens if the numbers do not satisfy the Commission:

• Applicants must demonstrate a minimum of $100,000 in liquid assets and/or $50,000 in unencumbered cash in the business, plus unencumbered inventory in the owner’s or business’s name.
• The Commission may require a bond of not less than $25,000, and will notify you if it does.
• Restricted/mobility applicants must show at least $100,000 in net worth and carry garage liability of at least $1,000,000.

The instructions are unusually direct about why this matters: improperly completed financial statements delay approval and can trigger a bond requirement, and listing liabilities is as important as listing assets. An applicant who under-reports to look strong invites the outcome they were avoiding.

Your Business Name Is Regulated

This is the requirement most first-time Kentucky applicants trip over, because it constrains a decision usually made months earlier at the Secretary of State:

• The name must incorporate “Used Cars,” “Auto Sales,” “Auto Mart” or similar wording that clearly identifies a motor vehicle sales business.
• You cannot use the name of any make of vehicle in the trade name or in advertising unless you hold or are applying for a new motor vehicle dealer licence.
• You cannot use “wholesale” or “leasing” unless you are licensed for those.
• You cannot use “broker” or “consignment” at all.

The Lot and the Office Are Measured

• Display lot / customer parking of at least 2,000 square feet, with a hard surface — gravel, asphalt or concrete — and no vegetation coming through the gravel at any time.
• The lot must be built so public traffic cannot flow through it, used exclusively for displaying vehicles and customer parking, and not shared with another business.
• An office of at least 100 square feet with desk, chairs and file cabinet, telephone and electricity, and a computer and fax machine.
• The office must be underpinned on a permanent foundation, on or immediately adjacent to the display lot, and cannot be a residence — the statute defines an established place of business as a commercial building.
• A permanent sign readable from the nearest roadway with lettering at least nine inches high, showing the business name exactly as it appears on the application, assumed name certificate or articles — and it must already be installed when you submit the application. Wholesale-only dealers are exempt from the sign.
• Businesses cannot share an address and must have their own mail receptacle.

Insurance, and Who Has to Send It

Garage liability at $250,000 per person, $500,000 per occurrence and $250,000 for property damage. Automotive recycling dealers provide a commercial general liability policy at the same amounts instead.

Two details matter. The certificate must be submitted by the applicant’s insurance company, not the agent. And it need not be on file before the Commission approves your application — you will be told when it is required, so you are not paying premiums while waiting on a vote.

Nearly Everyone Needs a Salesperson Licence

A salesperson licence is required for every person employed to sell vehicles, including the owners, even temporarily. It also covers anyone negotiating or displaying a vehicle to the public, anyone buying on the dealer’s behalf at auction, anyone driving on dealer plates, and anyone doing transfer work at the county clerk’s office. Restricted/automotive recycling dealers are the exception.

How to Get Licensed, In Order

1. Choose a compliant trade name and form the entity around it — this constrains the name, so do it first.
2. Secure a commercial location with a 2,000 sq ft hard-surfaced lot and a 100 sq ft office on a permanent foundation.
3. Install the sign with nine-inch lettering before you apply.
4. Prepare the financial statements carefully, listing liabilities as fully as assets.
5. Print the application free from mvc.ky.gov, or mail $7 for a paper copy.
6. Submit it complete, with $175 plus $25 per owner, at least ten working days before the second Friday of the month.
7. Pay $200 per licence type on approval, and have your insurer send the certificate when notified.

Frequently Asked Questions

How much does a Kentucky dealer license cost?

A $175 application fee plus $25 for each person listed as an owner, submitted with the application, and then $200 for each type of dealer license once approved. A salesperson license is $40. Requesting a paper application by mail costs $7, or you can print it free at mvc.ky.gov.

How much is the Kentucky dealer bond?

There is no automatic bond. The Commission may require a bond of not less than $25,000 based on your financial statements, and will notify you if it does. What every applicant must show is a minimum of $100,000 in liquid assets and/or $50,000 in unencumbered cash in the business, plus unencumbered inventory.

Can I name my Kentucky dealership anything I want?

No. Kentucky regulates the trade name. It must incorporate Used Cars, Auto Sales, Auto Mart or similar wording that clearly identifies a motor vehicle dealer. You cannot use the name of any vehicle make unless you are a franchised new dealer, cannot use wholesale or leasing unless licensed for those, and cannot use broker or consignment at all.

How long does Kentucky dealer licensing take?

It runs on a monthly cycle. The Commission meets the second Friday of each month, and a complete application must arrive at least ten working days before that meeting to make the agenda, not counting weekends, holidays or the day of the meeting. An incomplete application is returned, which costs you a full month.

Sources

Source	What it confirms
Requirements for a Kentucky Motor Vehicle Dealer License (rev. 03/2025)	Fees, meeting cycle, lot and office dimensions, sign, trade name rules, insurance, bond, asset test
Kentucky Motor Vehicle Commission — Dealer Requirements	Licensing agency, application process
KRS 190.030	Licence requirement and application
KRS 190.033	Insurance or bond required of licensees