Motor vehicle dealers are required to post a Illinois 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.
The price for the bond, also known as the bond premium, is only a small fraction of the bond amount. A dealer that sells more than 5 vehicles during one calendar year must be bonded. This bond ensures the principal will abide by all Illinois state laws and regulations along with all laws outlined in the Illinois Vehicle Code. 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. According to the Illinois Automobile Dealers Association Every dealer will receive a renewal application from the Secretary of State in August. This form should be completed and returned with an accompanying check or money order before November 15 to insure that the renewal will be processed before December 31st, the date of expiration for all dealer licenses
For more licensing information, visit Illinois’ official page.
Surety Solutions Insurance Services, Inc. (surety1) has been provding Illinois Motor Vehicle Dealer Bonds since 2003. We offer an easy to use, online application, fast service and low rates.