Motor vehicle dealers in the state are required to post a California Motor Vehicle Dealer Surety 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.
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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.
These bonds remain in full force with the period of a license. Although, the surety holds authority to cancel the bond in accordance with Article 13, Chapter 2, Title 14, Part 2 of the Code of Civil Procedure.
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 be helpful for you.
State licensing fees and requirements:
All licensing fees are required by the obligee, not the surety company.
For additional licensing requirements, visit California DMV official page: CA DMV Application Requirements
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