Delaware Motor Vehicle Dealer Bond

A Delaware Motor Vehicle Dealer Bond is a type of surety bond required by the Delaware Division of Motor Vehicles (DMV) for individuals applying for a license to operate a motor vehicle dealership. The bond amount is $25,000 and the cost of the surety bond is usually between 1% and 3% of the bond amount. Surety1 will shop its many markets to procure the right price at the right terms.

How to get a Delaware Motor Vehicle Dealer Bond

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

1. Complete the easy to navigate and secure online application. ¹
2. Review the free, no obligation quote from one of Surety1’s professional surety bond agents, usually within one business day.
3. Sign some paperwork and pay the bond premium

Once these steps have been completed, the Delaware Motor Vehicle Dealer Bond will be shipped to the bond applicant.
^{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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How to Get Licensed and Who Needs a License

You need a license and Delaware Motor Vehicle Dealer Bond if you plan to sell 5 or more vehicles in a 12-month period. This applies to both new and used vehicle dealerships.

Obtaining a Delaware Motor Vehicle Dealer License involves several steps. Here’s a breakdown of the process:

1. Business Registration:
   • Register your business with the Delaware Division of Revenue Delaware business guide: depending on your business structure. You might also need to register with the Division of Corporations.
2. Review Dealership Manual:
   • Familiarize yourself with the regulations and requirements outlined in the Dealership Manual available on the Delaware DMV website. This manual will guide you through the licensing process.
3. Application and Forms:
   • Obtain and complete the Application for Delaware Dealership License (Form MV29) from the DMV.
   • This application includes a criminal history background check and a Signature Authorization .
4. Business Name Approval:
   • Check with the DMV to ensure your desired business name is available and doesn’t conflict with existing dealerships.
5. Franchise Letters (if applicable):
   • If you’re selling new vehicles, you’ll need a letter of franchise from the manufacturer for each make you plan to offer.
6. Surety Bond:
   • Acquire a $25,000 Delaware Motor Vehicle Dealer Bond from Surety1.com. The bond protects consumers from financial losses.
7. Place of Business Inspection:
   • Schedule an inspection of your dealership location with the Delaware DMV.
8. Fees:
   • Pay the necessary fees associated with the application, bond, and business license.
9. Submit Application:
   • Once you’ve completed all the above steps, submit your application package to the Delaware DMV for processing.

Additional Resources:

• Delaware Division of Motor Vehicles – Dealer Services: https://dmv.de.gov/VehicleServices/dealers/index.shtml?dc=ve_dlr_whole
• Contact the DMV with any questions:
  • Email: DOTDealerLicensing@Delaware.gov
  • Phone:
    • Wilmington: (302) 434-3200
    • Delaware City: (302) 326-5000
    • Dover: (302) 744-2500
    • Georgetown: (302) 853-1000

The information provided above is for general informational purposes only and does not constitute legal advice.  Do not rely solely on the information presented here as a substitute for professional legal counsel.