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Alabama Used Motor Vehicle Dealer Surety Bond

Bond Requirements and Online Application

The Alabama Used Motor Vehicle Dealer Surety Bond is required by the Department of Revenue. The bond is required to help ensure that a car dealership follows all federal, state, and local laws and tax guidelines that pertain to Motor Vehicles. Franchised new car dealers must post a $25,000 bond while all other licensees must post a $10,000 bond.

What are the requirements in order to be a Used Motor Vehicle Dealer in the state of Alabama?

The Code of Alabama 1975 defines a used motor vehicle dealer as any person, firm or corporation engaged in the business of Alabama Used Motor Vehicle Dealer Surety Bondbuying, selling, exchanging, advertising, or negotiating the sale of five or more motor vehicles for retail in one calendar year, regardless of whether they own the said vehicles or not. Under Section 40-12, no person, firm, or corporation can conduct business as a used motor vehicle dealer without getting a license. The requirements for the application of the license are listed below. Please take note that all applications are submitted electronically, through this portal, and that you need to be a resident of Alabama in order to apply for a license.

  1. A completed application containing the following information:

1.1 The name of the proprietor and partners if there are.

1.2 The state sales tax assigned to the applicant.

  1. A list of all the used vehicles sold during the previous calendar year, including the location of the place of business.
  2. A fee of $25 to be paid to the commissioner.
  3. A sign showing the location of the said business.

Before any license may be issued, the applicant must also present a surety bond. This bond is needed to ensure the state that you will be conducting your business as a Used Motor Vehicle Dealer according to the rules and regulations of the state.

Where can I get an Alabama Used Motor Vehicle Dealer Surety Bond?

Simply complete this easy to navigate application, online application form and an agent will get back to you with a firm quote, usually within one business day. Once you have your quote, pay and your surety bond, sign some paperwork and your bond will be delivered to you USPS priority mail. Overnight delivery is available as well fr an additional fee.

Surety Solutions Insurance Services, Inc. (Surety1) has been issuing surety bonds in Alabama since 2003 and is rated A+ by the Better Business Bureau.



How to Get Your Alabama Used Motor Vehicle Dealer Surety Bond

1. Complete an online application. It's free and no-obligation. 2. One of our surety experts will contact you with a firm quote and an agreement to sign. 3. Provide payment and your signed agreement, and then you will receive your Alabama Used Motor Vehicle Dealer Surety Bond!   If you have any questions, please call us at 877-654-2327.
1. Apply Online Using our Free & Secure Application 2. Get Your Free Quote Applications are No-Obligation 3. Get Your Bond Most Bonds are Approved in 1-2 Business Days