There is a new, low cost program available for Iowa Motor Vehicle Dealers. With Good credit, the $50,000 surety bond can be purchased for the low price of$250.00 per year.
Non-franchise dealers and only $175.00 per year for franchise dealers. Financial statements are not required to obtain these low rates, however good credit is a condition to qualify. To obtain a motor vehicle dealer’s license to sell at retail in Iowa, you’ll need to establish a place of business that includes an office, a repair facility, and a display area.
In addition to the required surety bond, you’ll need to produce written evidence proving your business complies with all applicable zoning laws and requirements for incorporation. If your business will involve selling new cars rather than (or in addition to) used, you’ll also need to be franchised by the manufacturer or an authorized distributor of each make you plan to sell.