Date Published: September 2, 2023

If you sell more than 5 used cars in a year, you will need to get a used car dealer license. The penalties for selling cars without a license in Oregon are a fine of up to $5,000 per vehicle and / or  a Class A misdemeanor,Steps to Start a Used Car Dealer in Oregon punishable by up to one year in jail and a fine of up to $6,250. As such, it is important to obtain a motor vehicle dealer license in the state if you plan on selling more than 5 cars in a ear. the process can take some time so plan ahead.

The requirements to be a licensed used car dealer in Oregon are:

  • Complete 8 hours of pre-licensing education from an approved provider.
  • Obtain a $40,000 surety bond.
  • Obtain liability insurance with a minimum coverage of $100,000 per person and $300,000 per accident.
  • Obtain a business license from your city or county.
  • Have a physical location for your dealership that is approved by the city or county.
  • Have a qualified salesperson to work at your dealership.

You can find more information on the requirements for a used car dealer license in Oregon on the Oregon DMV website:

Here are the steps on how to get a used car dealer license in Oregon: Oregon Motor Vehicle Dealer License Application

  1. Complete the pre-licensing education course.
  2. Obtain a surety bond.
  3. Obtain liability insurance.
  4. Obtain a business license from your city or county.
  5. Find a physical location for your dealership.
  6. Hire a qualified salesperson.
  7. Apply for a used car dealer license from the Oregon DMV.

The application process can take several weeks. is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Representing over a dozen surety bond companies, is the premier online provider of surety bonds nationwide since 2003.

For information on license and surety bond requirements for motor vehicle dealers in other states, click here.

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