California Motor Vehicle Dealer Bond

Motor vehicle dealers in the state are required to post a California Motor Vehicle Dealer Bond as part of the process to license the dealership. This is a type of surety bond.  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.

How to Get a California Motor Vehicle Dealer Bond

At Surety1.com we make it simple to obtain this surety bond. Our simple, three step process is:

1. Complete our easy to navigate and secure online application¹
2. Review your free, no obligation quote from one of our surety bond professional agents.
3. Sign some paperwork and make payment (all major credit cards accepted)

Once these steps have been completed, your California Motor Vehicle Dealer Bond will be shipped to you via traceable mail for the necessary original signature.
^{1-The name of the applicant on the surety bond application must match exactly the full legal business name of applicant for the license.} 

Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Representing over a dozen surety bond companies, Surety1.com is the premier online provider of surety bonds nationwide since 2003.

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Motor Vehicle Dealer Surety Bond

• Required by: California Department of Motor Vehicles
• Minimum Bond Amount: $10,000
• Maximum Bond Amount: $50,000
• Valid: Renewable

The price for the bond, also known as the bond premium, is only a small fraction of the bond amount.  For a free quote, simply complete an application. We have been providing Motor Vehicle Dealer Surety Bonds since 2003. 

For motorcycle dealers, motorcycle lessor-retailers, ATV dealers, and wholesale-only dealers that sell less than 25 vehicles per year, a $10,000 surety bond is required.  All other commercial vehicle dealers must file a $50,000 bond. This bond guarantees dealers will abide by all California state laws and regulations outlined in 11711 also known as the California Vehicle Code. The surety bond is a financial guarantee that you will comply with the laws and regulations governing the used car industry. The bond amount is $50,000 for used car dealers and $10,000 for motorcycle and all-terrain vehicle dealers.

What are the requirements to be a licensed used car dealer in California?

Surety1 is not directly involved with the licensing process, but we’ve compiled this information which may be helpful for you. To be a licensed used car dealer in California, you must meet the following requirements:

• Complete the Dealer Education Program and pass the Used Dealership Exam.
• Obtain a surety bond of $50,000.
• Obtain a Seller’s Permit from the California Department of Tax and Fee Administration (CDTFA).
• Obtain a City Business License.
• Obtain a Property Use and Zoning Verification.
• File a Statement of Information with the California Secretary of State.
• Submit an application to the California Department of Motor Vehicles (DMV).

The Dealer Education Program is a 6-hour course that covers the laws and regulations governing the used car industry in California. The Used Dealership Exam is a 50-question multiple-choice exam that tests your knowledge of the material covered in the Dealer Education Program.

The surety bond is a financial guarantee that you will comply with the laws and regulations governing the used car industry. The bond amount is $50,000 for used car dealers and $10,000 for motorcycle and all-terrain vehicle dealers.

The Seller’s Permit allows you to collect sales tax on the vehicles you sell. The City Business License is required by the city where your dealership is located. The Property Use and Zoning Verification is required to ensure that your dealership is located in a zoned area that allows used car dealerships.

The Statement of Information is a document that provides information about your business, such as its name, address, and registered agent. You can file the Statement of Information with the California Secretary of State online.

The application to the DMV must be accompanied by the required fees and documentation. The fees vary depending on the type of license you are applying for. The full requirements for a used car dealer license in California can be found on the DMV website.

Here are the steps on how to get a used car dealer license in California:

1. Complete the Dealer Education Program and pass the Used Dealership Exam.
2. Obtain a California Motor Vehicle Dealer Bond of $50,000.
3. Obtain a Seller’s Permit from the CDTFA.
4. Obtain a City Business License.
5. Obtain a Property Use and Zoning Verification.
6. File a Statement of Information with the California Secretary of State.
7. Submit an application to the California Department of Motor Vehicles (DMV).

The process of getting a used car dealer license in California can take several months. It is important to carefully follow the requirements and to submit all of the required documentation in order to avoid delays.