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

Last updated: August 19, 2026

Alabama runs dealer licensing through the Department of Revenue, and it takes two stops. First the state Master Dealer License at $125, backed by a $50,000 continuous bond and blanket liability insurance. Then the part people forget: you must go to the county licensing office for privilege licenses — and until that happens, no dealer plates are issued.

Who Needs the License

Alabama’s requirement is drawn by category rather than by a vehicle count. It covers all new and used motor vehicle dealers, including motorcycle and trailer dealers (excluding trailers not subject to titling), plus wholesale dealers and rebuilders. If you are operating in any of those roles, the regulatory license applies — there is no published “sell this many first” allowance to lean on.

What Alabama Actually Requires

• Master Dealer License — $125, plus $5 for each additional place of business.
• $50,000 continuous surety bond filed with ALDOR. The dealer bond also satisfies the designated agent bonding requirement.
• Blanket liability insurance covering all vehicles owned by or associated with the business, with minimums of $25,000 bodily injury per person per accident, $50,000 combined bodily injury per accident, and $25,000 property damage per accident.
• An established place of business in Alabama.
• Electronic application through the Alabama Partner Registration Portal. On submission you receive a transmittal sheet listing which documents must then be mailed to the department.
• County privilege license(s) purchased after the regulatory license is granted — required before dealer plates issue.

Dealer Plates Are Rationed by Type

Dealer type	Plate allowance	Cost
New motor vehicle dealer	Up to 35 dealer and motorcycle dealer plates combined	$25 each
Used motor vehicle dealer	Up to 10 combined	$25 each
Used dealer with 300+ annual title transfers	Up to 25 additional plates	$25 each

That 300-transfer threshold is worth planning around: a used dealership that crosses it more than triples its plate allowance, which changes how many vehicles you can move on dealer tags at once.

What It Costs

Item	Cost	Notes
Master Dealer License	$125	$5 per additional place of business
Continuous surety bond	$50,000 penal sum	Also covers the designated agent requirement
Dealer license plates	$25 each	Allowance depends on dealer type
Blanket liability insurance	Quoted to you	$25,000 / $50,000 / $25,000 minimums
County privilege license(s)	Set by county	Required before plates issue

How to Get Licensed, In Order

1. Form the entity with the Alabama Secretary of State so the bond, insurance, and licenses all name the same business.
2. Secure an established place of business in Alabama.
3. Bind the $50,000 continuous bond and the blanket liability policy at the state minimums.
4. Apply electronically through the Alabama Partner Registration Portal, then mail the documents listed on your transmittal sheet.
5. Buy your county privilege license(s) once the regulatory license is granted.
6. Order dealer plates at $25 each, within your dealer type’s allowance.

Frequently Asked Questions

How much is an Alabama dealer license?

The Master Dealer License is $125, plus $5 for each additional place of business. Dealer license plates are $25 each. Behind those figures sit a $50,000 continuous surety bond and blanket liability insurance, and you must still purchase county privilege licenses before plates are issued.

What is the Alabama dealer bond amount?

All licensees must submit a continuous bond of $50,000 to the Alabama Department of Revenue. That same dealer bond also satisfies the designated agent bonding requirement, so you do not post two.

How many dealer plates can an Alabama used car dealer get?

Used motor vehicle dealers are limited to 10 dealer and motorcycle dealer plates combined, at $25 each. A used dealer completing 300 or more title transfers annually may obtain up to 25 additional plates. New motor vehicle dealers may hold a combined total of 35.

Do I need a county license too in Alabama?

Yes. The state regulatory license comes first from ALDOR, and after it is granted you must visit the county licensing office to purchase the appropriate privilege license or licenses. Dealer plates are not issued until that step is done.

Taxes, the business privilege tax, and hiring are covered in our full guide to starting a business in Alabama.

Sources

Source	What It Covers
ALDOR — Dealer Licenses and Dealer License Plates	Who must be licensed, $125 Master Dealer License, $50,000 bond, insurance minimums, plate allowances and fees, county privilege license step
ALDOR — Dealer License FAQs	Bonding requirements and established place of business