Starting a used car dealership in Wyoming can be a profitable venture, but it’s essential to navigate the licensing process correctly to ensure compliance with state laws.
This guide will provide you with a comprehensive, fact-checked step-by-step process to obtain a used car dealer’s license in Wyoming.
We’ll also highlight dealer licensing requirements and explain why sourcing inventory through auto auctions like Twin Cities Auctions can be an effective strategy.

Key Takeaways
- In Wyoming, you can sell three or more vehicles within a 12-month period without a dealer’s license. If you sell four or more vehicles annually, you must obtain a used car dealer’s license.
- Wyoming offers several dealer licenses, including Used Car Dealer, Wholesale Dealer, and Auction Dealer licenses, each with specific requirements.
- To qualify for a dealer’s license, you must complete an application, pass a criminal background check, obtain a surety bond, and submit required documents.
- Auctions like Twin Cities Auctions offer a cost-effective and convenient way to source inventory for your dealership.
Step-by-Step Process to Obtain a Used Car Dealer’s License in Wyoming
Step 1: Choose the Right Type of License
Wyoming offers several types of dealer licenses, including:
License Type | Description |
Used Car Dealer License | Allows you to sell used cars directly to the public. |
Wholesale Dealer License | Permits selling vehicles exclusively to other licensed dealers. |
Auction Dealer License | Authorizes operating a vehicle auction business. |
For most individuals looking to sell used cars to the public, the Used Car Dealer License will be the necessary choice.
Step 2: Meet the Basic Requirements
Before applying for your used car dealer’s license, ensure that you meet the following basic requirements:
Requirement | Description |
Permanent Business Location | A commercial space, not a residence, with signage and vehicle display space. |
Business Entity | Must be a legal entity such as an LLC, corporation, or sole proprietorship. |
Surety Bond | A $25,000 surety bond is required to protect consumers in case of misconduct. |
Criminal Background Check | Applicants must undergo a criminal background check and submit fingerprints. |
According to the Wyoming Department of Transportation (WYDOT), the criminal background check requires fingerprints and costs around $39 for processing. (WYDOT)
Step 3: Complete the Dealer License Application
The next step is to submit the MV-422 Vehicle Dealer and Manufacturer Application form, which can be found on the WYDOT website. The form asks for detailed information about your business, including:
- Your business name and address
- Proof of business entity (LLC, corporation, etc.)
- Documentation of compliance with local zoning laws for your business location
- Photos of your business location, including signage and space for vehicle display
Step 4: Submit Required Documents
Along with the application form, you’ll need to submit several supporting documents:
Required Document | Description |
Business Location Documentation | Proof that your business complies with local zoning laws. |
Surety Bond | A copy of the required $25,000 surety bond. |
Criminal Background Check Results | Fingerprint cards and the $39 processing fee. |
Business Registration | A copy of your legal business registration. |
Once submitted, WYDOT will review your application and notify you if any additional information is required.
Step 5: Pass the Criminal Background Check
All applicants must undergo a criminal background check. This process includes:
- Submitting fingerprint cards for a background check.
- Paying a $39 fingerprint processing fee.
A criminal history check is necessary to verify that the applicant does not have any disqualifying criminal convictions, particularly related to fraud or dishonesty. (WYDOT)
Step 6: Obtain the Surety Bond
According to SuretyBonds, $25,000 surety bond is required for all vehicle dealers in Wyoming. This bond protects consumers in case the dealership fails to meet its obligations. The cost of the bond can vary but generally starts at around $250 for a one-year term.
Step 7: Submit Fees and Await Approval
Once all the necessary documents and the surety bond are submitted, you will need to pay the application fee. The fees for Wyoming’s dealer license are as follows:
Fee Type | Amount |
Dealer License Application Fee | $150 for dealers selling 12 or more vehicles annually. |
Dealer Plates | $50 per plate for the first two plates. |
Criminal Background Check Fee | $39 per individual. |
After paying the fees, WYDOT will process your application. Upon approval, you will be issued your Used Car Dealer License, allowing you to sell used vehicles in Wyoming.
Why Auctions Are a Smart Choice for Vehicle Sales
When you’re building your inventory, using auctions can be a smart choice for sourcing vehicles. Twin Cities Auctions, based in Minnesota, is one such reputable auction house that offers a wide range of vehicles at competitive prices.
Key Benefits of Buying from Auctions:
- Wide Selection: Auctions like Twin Cities Auctions offer a variety of vehicles, from low-budget cars to high-end models.

- Competitive Pricing: Auctions often offer vehicles at prices below retail value, enabling dealers to maximize their profit margins.

- Transparency: Auctions provide full vehicle history reports, so you know exactly what you’re buying.

- Convenient Bidding: Many auctions offer online bidding for your convenience, making it easier to source vehicles without being physically present.
Twin Cities Auctions: A Smart Vehicle Sourcing Choice
For those in the automotive industry, Twin Cities Auctions offers an excellent platform for sourcing quality vehicles at competitive prices.
Whether you are just starting or expanding your business, this auction house provides transparency, competitive pricing, and a broad selection.
Feature | Description |
Inventory Variety | Wide range of cars, trucks, and SUVs available |
Competitive Pricing | Below-market pricing allows for higher profit margins |
Vehicle History Reports | Detailed history reports for every vehicle |
Online Bidding | Convenient online bidding options for dealers |
Financing Options | Financing available to help with inventory purchases |
Practical Tips for Sellers and Dealers
In addition to obtaining your license and sourcing inventory, here are a few practical tips to help you succeed:
Know Your Market
Research your local area to understand which types of vehicles are in demand. For example, if you are in a rural area, trucks and SUVs may be in higher demand, while compact cars could be popular in urban settings.
Offer Financing Options
Many buyers are interested in financing their vehicle purchase. Offering financing, either through banks or in-house, can help you attract more customers and boost sales.
Build an Online Presence
A professional website and active social media profiles will help your dealership attract new customers. Listing your inventory online can expand your reach and drive traffic to your dealership.
Conclusion
Obtaining a used car dealer’s license in Wyoming involves a clear and structured process. By completing the necessary steps, including choosing the right license, submitting documents, passing a background check, obtaining a surety bond, and paying fees, you can legally operate a dealership.
Sourcing inventory through auto auctions like Twin Cities Auctions offers a practical and cost-effective solution to building your dealership’s stock.
Ready to Buy or Sell Your Car? No Dealer License Needed!
At Twin Cities Auctions, we simplify the process of buying and selling vehicles, making it straightforward and hassle-free. You don’t need a dealer license to participate—our online platform is open to the public, accommodating both first-time buyers and seasoned sellers.
Whether you’re upgrading your ride or selling your current vehicle, we provide the platform you need that offers a diverse range of vehicles and a transparent bidding process. Start your auction journey with us today!
Looking for more options? Explore our comprehensive list of all available car auctions across the United States. Your next deal might be just a click away!
FAQ
What is the maximum number of vehicles you can sell without a dealer’s license in Wyoming?
In Wyoming, you can sell up to three vehicles in a 12-month period without needing a dealer’s license. Selling four or more vehicles annually requires obtaining a used car dealer’s license.
How much does a used car dealer’s license cost in Wyoming?
The total cost for a used car dealer’s license in Wyoming includes a $150 application fee, along with $50 per plate for the first two dealer plates and a $39 fee for the background check.
Do I need a physical location to sell cars in Wyoming?
Yes, your business must have a permanent, non-residential location with sufficient space to display vehicles and comply with local zoning laws.
How do I prepare for the Wyoming dealer exam?
Although Wyoming does not require a formal dealer exam, it is crucial to study state motor vehicle laws, including title transfers, warranties, consumer protection, and advertising regulations.
What is a surety bond, and do I need one?
A surety bond is a financial guarantee that protects consumers if your dealership fails to meet its obligations. Yes, you will need to secure a $25,000 surety bond to operate legally.
Can I sell cars without a license at an auction in Wyoming?
No, a dealer’s license is required to participate in vehicle auctions in Wyoming, whether buying or selling cars.
What are the business location requirements for a used car dealership in Wyoming?
Your dealership must have a physical, commercial location that complies with local zoning laws and provides enough space for vehicle display.
Why should I use auto auctions to source vehicles for my dealership?
Auto auctions provide a cost-effective way to purchase a variety of vehicles, allowing you to quickly build and diversify your inventory at competitive prices.
Source Links
Wyoming Department of Transportation – Vehicle Dealerships
MV-422 Vehicle Dealer and Manufacturer Application
Vehicle Business Regulation – WYDOT