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Alabama Designated Agent and Motor Vehicle Dealer Bond Requirement Combined

Effective July 14, 2014, Alabama now allows 2 for 1 for motor vehicle dealers and designated agents surety bonds. Prior to that date, 2 separate bonds were required.

The Alabama Department of Revenue has combined two of its license bond requirements. According to the AL Department of Revenue’s application for a motor vehicle dealer, “All new and used dealers are required by law to become designated agents of the department. The dealer regulatory license bond satisfies the designated agent bonding requirement”.  If you already have the two bonds from the previous state requirements, you can have one cancelled and have the second amended and put onto the new, combined form.

The amount of the Alabama DMV Dealer Bond is $25,000 and the cost is as low as $375.00 per year, subject to underwriter approval.

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Alabama Motor Vehicle Dealer Bonds

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