Motor vehicle dealers are required to post a Motor Vehicle Dealer Bond as part of the process to license the dealership. The amount of the bond depends on what type of vehicles are to be sold, the amount of vehicles you plan to sell, and other factors. Read our Car Dealer License Guide to learn more about how to get your dealership licensed and bonded.
Dealers that only sell motorcycles must file a $25,000 surety bond while all other vehicle dealers must file a $50,000 surety bond.
The price for the bond, also known as the bond premium, is only a small fraction of the bond amount.
The bond guarantees that the principal will abide by all Alaska state laws and regulations outlined in the provisions of AS 08.66.
The bond remains in full force and effect until it is cancelled. If it is cancelled, the principal must submit a notice of cancellation to the Commissioner of Motor Vehicles in Anchorage Alaska.
The applicant should verify the bond amount with the obligee before applying for the bond to ensure the bond amount is correct.
Surety1 is not directly involved with the licensing process, but we’ve compiled this information which may helpful for you.
State licensing fees and requirements:
All licensing fees are required by the obligee, not the surety company.
The license is valid for 2 years and must be renewed every 2 years.
For additional licensing information, visit Alaska’s official page: AK Department of Administration DMV