North Dakota Auction License

North Dakota Auction License

You live in ND and set up a business as an auto trader, but you do not know how to conduct it legally? This article is just for you. Stay on this page and hunt for detailed information about a North Dakota auction license.

Types of ND trader certificates

Looking to sell cars through bidding in North Dakota? For this purpose, an auctioning license is mandatory. You can get it at the MVD (Motor Vehicle Division) of the NDDOT (North Dakota Department of Transportation). Here you should choose your preferred certificate type. Those are:

  • New machine merchant
  • Used machine merchant
  • Motor-powered recreational vehicle merchant
  • Trailer
  • Mobile and manufactured home

Note: the first two types are connected, as new car dealers can also sell used cars.

Establish a trade location and register

This is your next step. Before applying for your auctioning license, you should register your activities as a business. Alongside it, you need to find a trade location, which must meet the following requirements. It should show:

  • lot of at least 2.500 sq ft
  • building of about 250 sq ft
  • work sign of 32 sq ft, which must be visible from the road
  • work telephone installation
  • zoning approval form

Then, an agent from the MVD will come to inspect your trade location.

Complete the application

After improving issues connected with the business location, you should complete the application for a North Dakota auction license. Alongside your application, you should attach the following:

  • Zoning approval form
  • Proof of trader location ownership
  • ND auto dealer bond
  • Liability insurance certificate
  • Franchise agreement

ND auto dealer security bond

This is a kind of guarantee that aims to make a motor vehicle trader work legally and honestly. It is considered to be a part of the licensure. You can learn the bond amounts below:

  • $25,000 -new and used machine auctioneers
  • $50,000- mobile and manufactured home auctioneers
  • $10,000- trailer and MPR vehicle auctioneers

Note: you are not obliged to pay the whole bond amount, you just need to settle a percentage of it. It depends on your credit score. If it is good, you are to settle 1-4% of the bond amount, and if it is bad, you are to settle 5-15%. You will pay once a year and not monthly.

Pay the fees

Besides the bond amount, you should also pay the required fees. Those are as follows:

  • New and used car traders- $100
  • Mobile home and manufactured home traders- $35
  • Trailer traders- $30
  • MPR car dealers- $25

There are additional fees for your auctioneer plates (it depends on the number of plates) and your dealership inspection. Those are:

  • New, used, and trailer dealers- $100
  • MPR vehicle dealers-$50

Note: mobile/manufactured home dealers do not pay an inspection fee.

Once you manage to submit your application, you will get an answer in some time.

To learn about the procedures for a Maryland auction license as well, click here.


Your North Dakota auction license is valid for a year. If you want to keep it active after that period, you should renew it before the expiration date. Otherwise, it will be mandatory for you to pay a $100 penalty.

Note: If you are a new and used car auctioneer, you will have to sell more than 8 vehicles a year to be allowed for renewal. In addition, you must begin your renewal process before January 1 to December 31.

Evelina V

Evelina V

Evelina is a junior content writer with high tech skills. She has been working as a computer operator, secretary and English language teacher for a long period of time. However, she never gets enough of studying and enhancing her skills. Now, she writes SEO-friendly and original content for different websites and blogs.