Buying & Selling

Vehicle recycler's license

In the state of Iowa, you are required to have a vehicle recycler’s license if you are engaged in or advertise being engaged in, the business of any of the following:

1. Selling or offering for sale used bodies, parts of bodies, frames, or component parts of more than six used vehicles subject to registration in a twelve-month period.
2. Dismantling, scrapping, recycling, or salvaging more than six vehicles subject to registration in a twelve-month period.
3. Rebuilding or restoring for sale more than six wrecked or salvage vehicles subject to registration in a twelve-month period.
4. Storing more than six vehicles not currently registered or storing damaged vehicles except where such storing of damaged vehicle is incidental to the primary purpose of the repair of vehicles for others.

To obtain a vehicle recycler’s license, you must have a place of business where you maintain regular business hours and the public can contact you. Regular business hours are a minimum of 32 hours, Monday through Friday, where the office is staffed during these hours.  Your place of business must include an office, be equipped with a telephone, and comply with local zoning and ordinance requirements. A vehicle recycler shall register with the National Motor Vehicle Title Information System (NMVTIS) and comply with all reporting requirements of 28 C.F.R 25.56.

Vehicle rebuilders must certify that at their location there is a 14-foot by 24-foot (inside measurement) area in a building for rebuilding and restoring vehicles, sufficient storage for all vehicles in the inventory and equipment necessary to perform rebuilding and restoring of vehicles in the inventory.

Used vehicle parts recyclers must certify that at their location there is sufficient storage for the vehicle parts in the inventory.

Vehicle salvager must certify that there is sufficient storage for vehicles, vehicle parts and vehicle bodies included in the inventory; and that there is sufficient equipment necessary to perform dismantling, scrapping or storing of vehicles and/or vehicle parts included in the inventory.

The license fee is $70. Any supplemental location within the same county at which business is conducted is referred to as an extension. There is no additional license fee for an extension, but any extension address must be listed when applying. Selling rebuilt vehicles at retail will require a motor vehicle dealer’s license. A recycler’s license does not authorize selling vehicles at retail.

If the business stores, keeps, buys or sells 10 or more wrecked, scrapped, ruined, dismantled or inoperative vehicles, you must comply with the Iowa Junkyard Control Law, Chapter 306C.2 of the code. The law prohibits junkyards within 1,000 feet of the nearest edge of any interstate or primary highway, except those which are:

1. Effectively screened by natural objects, plantings, fences or other means approved by the Iowa DOT.
2. Located in industrial zones or unzoned industrial areas.
3. Not visible from the main traveled portion of the highway.
4. Established prior to July 1, 1972.