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. 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.
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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. 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:
- Surety bond
- License application
- Supporting application documents (listed on DMV official page)
- $175 non-refundable application fee
- $100 auto broker fee
- $300 new motor vehicle board fee
- $70 for every dealer plate
- $72 for every motorcycle plate
- $1 family support program fee
- $70 for each additional business location
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
How do I get a California Motor Vehicle Dealer Surety Bond?
At Surety1.com we make it simple to obtain this surety bond. Our simple, three step process is:
- Complete our easy to navigate and secure online application1
- Review your free, no obligation quote from one of our surety bond professional agents.
- Sign some paperwork and make payment (all major credit cards accepted)
Once these steps have been completed, your California Motor Vehicle Dealer Surety 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. Surety1.com is the premier online provider of surety bonds nationwide since 2003. We also maintain an A+ rating from the Better Business Bureau.
How to Get Your California Motor Vehicle Dealer Surety Bond
- Complete an online application. It’s free and no-obligation.
- One of our surety experts will contact you with a firm quote and an agreement to sign.
- Provide payment and your signed agreement, and then you will receive your Surety Bond!
If you have any questions, please call us at 877-654-2327.
Surety1 was founded in 2003 and helps thousands of clients find the best prices on their surety bonds. We take pride in our work so that we can give you great service. Learn more about Surety1.