Motor Vehicle Dealer Bond

Motor Vehicle Dealer Bonds

In most states, both new and used motor vehicle dealers are required to post a Motor Vehicle Dealer Bond as part of the auto dealer licensing requirements. These bonds are also referred to as “auto dealer bonds” or “car dealer bonds.”

The amount of the Motor Vehicle Dealer Bond will depend on what type of vehicles are to be sold, what state you wish to open the business in and the amount of vehicles you plan to sell to the public.

 

Car Dealer License Guide

Read our Car Dealer License Guide to learn how to get your dealership licensed and bonded. It includes information on how to get your business licensed, the specific surety bond that you need, and all state requirements for the bond.

 

auto dealer bond

 

Apply for Your Motor Vehicle Dealer Bond Now

 

 

Who is a Motor Vehicle Dealer?

A motor vehicle dealer is generally someone who:

  • Sells, exchanges, buys, or attempts to negotiate a sale or exchange of an interest in a vehicle.
  • Represents him or herself as someone who has the ability to sell, exchange, buy or negotiate the sale of  a vehicle subject to registration.
  • Gets paid in the form of commission, money, brokerage fee, profit or any other thing of value from the seller or purchaser of a vehicle.
  • Is, in any form, engaged in the business of selling vehicles, buying vehicles, or trading vehicles for sale, resale or consignment or otherwise dealing in vehicles, regardless of ownership.

 

Unlike insurance, the bond is in place to protect the public from you. If there is a claim placed on your motor vehicle dealer bond and you are found at fault, the surety company will pay out; however, you will have to pay them back. This bond is fairly easy to obtain, all we need is a filled out application and we can get you a free quote, usually the same day you apply for the bond.

 

State Requirements

Alabama – The State of Alabama requires new car dealers, used care dealers, wholesalers, rebuilders and reconditioners to post the Alabama Motor Vehicle Dealer Bond in the amount of $25,000.  Apply for your Alabama dealers bond.

Arizona – The State of Arizona requires new dealer, used dealers, title service companies, brokers, wholesale dealers, wholesale auctioneers and automotive recyclers to post the Arizona Motor Vehicle Dealer Surety Bond.  New and used dealers must post a $100,000 bond and title service companies, brokers, wholesale dealers,  and wholesale auctioneers must post a $25,000 bond. Recyclers have the lowest bond requirement with $20,000. Apply for your Arizona dealers bond.

Arkansas – The State of Arkansas requires used motor vehicle dealers, wholesalers and auto auctioneers to post the Arkansas Motor Vehicle Dealer Surety Bond in the amount of $25,000. Apply for your Arkansas dealers bond.

California – The State of California requires Wholesale or Motorcycle Dealers to post a $10,000 bond and New and Used Dealerships to post a $50,000 bond. Apply for your California dealers bond.

Colorado – The State of Colorado makes power sports vehicle dealers, used motor vehicle dealers, used power sports vehicle dealers, wholesaler and wholesale motor vehicle auction dealer post the Colorado Motor Vehicle Dealer Bond.  All dealers must post this bond in the amount of $50,000. Apply for your Colorado dealers bond

Connecticut – The State of Connecticut requires new car dealers, used car dealers, leasing or rental companies, and limited and general repairers to post the Connecticut Motor Vehicle Dealer Surety Bond.  new and used car dealers need to post a $50,000 bond, repairers need to post a $5,000 bond and leasing or rental companies need to post a $10,000 bond. Apply for your Connecticut dealers bond.

Delaware – The State of Delaware requires the Delaware Motor Vehicle Dealer Surety BondApply for your Delaware dealers bond.

Florida – The State of Florida requires independent dealers, franchise dealers, service facilities, wholesale dealers, auctioneers and salvage dealers to post the Florida Motor Vehicle Dealer Surety Bond in the amount of $25,000. Apply for your Florida dealers bond.

Georgia – The State of Georgia requires this bond to have a one year term that expires on March 31st of every year. The required bond amount is $35,000. Apply for your Georgia dealers bond.

Illinois – The State of Illinois requires all new dealers, used dealers, brokers and wholesalers to post the Illinois Motor Vehicle Dealer Surety Bond in the amount of $20,000. Apply for your Illinois dealers bond.

Iowa – The State of Iowa requires the Iowa Motor Vehicle Dealer Surety Bond to be in the amount of $50,000. Apply for your Iowa dealers bond.

Kansas – The State of Kansas requires dealers applying for a license to post a $30,000 dollar bond. Click here to view a copy of the bond form from the Department of Revenue. Apply for your Kansas dealers bond.

Louisiana – The State of Louisiana requires dealers to post a motor vehicle dealer bond, click here to view a copy of the application from the Louisiana Used Motor Vehicle Commission. Apply for your Louisiana dealers bond.

Maine – The Bureau of Motor Vehicles requires new vehicle dealers, used vehicle dealers, recycler, auctioneer,  and both heavy and light trailer dealers. Click here to view a copy of the motor vehicle dealer license application packet. Apply for your Maine dealers bond.

Maryland – The Maryland Department of Transportation, Motor Vehicle Administration requires new vehicle dealers, used vehicle dealer and wholesale dealers to post a surety bond in an amount determined by the administration. Apply for your Maryland dealers bond.

Michigan – The Michigan Secretary of State requires that new vehicle dealers, used vehicle dealers, used vehicle parts dealer, brokers, distressed vehicle transporters, vehicle scrap metal processor, wholesalers, and recyclers to post a motor vehicle dealer bond. These bonds all need to be in the amount of $10,000. Apply for your Michigan dealers bond.

Minnesota – The State of Minnesota requires new vehicle dealers, used vehicle dealers, wholesalers, brokers, auctioneers, and limited use vehicle dealers to post the Minnesota Motor Vehicle Dealer Surety BondClick here to view a copy of the bond form, and click here to view a copy of the license application.

Mississippi – The Mississippi Motor Vehicle Commission requires the motor vehicle dealer bond to be in the amount of $25,000. Click here to view the licensing packet. Apply for your Mississippi dealers bond.

Missouri – The Missouri Department of Revenue requires this bond to be in the amount of $25,000 for license applicants. Apply for your Missouri dealers bond.

Montana – The Montana Motor Vehicle Dealer Bond has varying amount depending on what kind of license the applicant is applying for. Those applying as new or used car, truck, trailer or motor home dealers need to post a $50,000 bond. Those applying as a motorcycle dealer need a $15,000 bond and snowmobile, non-street legal motorcycles, quads and boat dealers need a $5,000. Apply for your Montana dealers bond.

Nebraska – The motor vehicle dealer bond for Nebraska must be in the amount of $50,000 for all vehicle, trailer, wholesale and motorcycle dealers. Click here to view a copy of the bond form. Apply for your Nebraska dealers bond.

Nevada – The State of Nevada has different requirements for their motor vehicle dealers and motor vehicle dealer bond.  The bond dealer must post is called the Nevada Vehicle Industry Business License Bond, and this bond covers basically anyone in the auto industry, so bond amounts vary greatly. To view a copy of the bond form, click hereApply for your Nevada dealers bond.

New Jersey – The Motor Vehicle Commission requires that New Jersey Motor Vehicle Dealers post the New Jersey Motor Vehicle Dealer Surety Bond in the amount of $10,000.  Click here for more information from the New Jersey Motor Vehicle Commission. Apply for your New Jersey dealers bond.

New Mexico – The State of New Mexico requires all of the following business to obtain a motor vehicle dealer license, and subsequently a motor vehicle dealer bond: new vehicle dealers, used vehicle dealers, wreckers, dismantlers, autorecyclers, manufacturers, distributors and motorcycle dealers. Apply for your New Mexico dealers bond.

New York – The New York Department of Motor Vehicles requires those seeking a motor vehicle dealer license to post a bond.  The bond amount varies depending on which license you are seeking and how many vehicles you sell.  Those who sell less than 200 vehicles only need to post a $10,000 bond, and those who sell more than 200 vehicles must post a $25,000 bond.  Franchise dealers who sell cars, SUVs or small trucks need a $50,000 bond. However, dealers who sell trailers, motorcycles, vehicles over 10,000 pounds, boats, ATVs and snowmobiles do not need to post this bond. Apply for your New York dealers bond.

North Carolina – The North Carolina Division of Motor Vehicles requires all applicants to post a $50,000 surety bond for the first business location and a $25,000 for each additional location.  To read a bit more about this bond, you can check out this blog postApply for your North Carolina dealers bond.

North Dakota – The North Dakota Department of Transportation requires that all type of motor vehicle dealers post a $25,000 motor vehicle dealer surety bond. To view a copy of the motor vehicle dealer application, click hereApply for your North Dakota dealers bond.

Oklahoma – The Used Motor Vehicle and Parts Commission of Oklahoma sets the bond amount for dealers at either $15,000, $25,000, or $50,000.  Th amount is determined at the discretion of the Commission, but this excludes wholesalers as they have a required bond amount of $25,000. Apply for your Oklahoma dealers bond.

Oregon – The Oregon Department of Motor Vehicles requires any auto or truck dealers to post a $40,000 Oregon Motor Vehicle Dealer Surety Bond.  Motorcycle and ATV dealers need to post a $2,000 motor vehicle dealer bond. Apply for your Oregon dealers bond.

Rhode Island – The State of Rhode Island requires motor vehicle dealers to post a $50,000 Rhode Island Motor Vehicle Dealer Surety Bond.  Click here to view a copy of the application form. Apply for your Rhode Island dealers bond.

South Carolina – The State of South Carolina requires all new or used dealers and wholesalers to post a $30,000 bond and wholesale auctioneers, travel trailers and motorcycle dealers to post a $15,000 bond. Apply for your South Carolina dealers bond.

South Dakota – The State of South Dakota requires New Vehicle Dealers and Used Vehicle Dealers, Final Stage Manufacturer Dealer and Mobile/Manufactured Home Dealer must all post a $25,000 bond, Motorcycle Dealers  and Snow Mobile Dealers must post a $5,000 bond, Trailer Dealers must post a $10,000 bond for trailers that weigh more than 3,000 pounds, Boat Dealers must post a $20,000, and Emergency Vehicle Dealers must post a $10,000 bond.  To view more South Dakota Motor Vehicle Dealer information requirements, you can click hereApply for your South Dakota dealers bond.

Tennessee – The State of Tennessee requires the Tennessee Motor Vehicle Dealer Surety Bond to be in the amount of $50,000. Click here to view the bond form and click here to view a copy of the application. Apply for your Tennessee dealers bond.

Texas – The State of Texas requires that new and used motor vehicle dealers, motorcycle dealers, wholesale dealers, wholesale auctioneers and independent mobility dealers post the Texas Motor Vehicle Dealer Surety Bond as a part of the license application process. All of these licenses require the bond amount to be $25,000. Apply for your Texas dealers bond.

Utah – The State of Utah requires new or used dealers to post a $75,000 bond and motorcycle and small trailer dealers to post a $10,000 surety bond.  To view a copy of the Utah Motor Vehicle Dealer Bond form, click hereApply for your Utah dealers bond.

Vermont – The State of Vermont requires many different dealer types to post the Vermont Motor Vehicle Dealer Surety Bond.  All auction dealers, all-terrain vehicle dealers, farm equipment dealers, finance car dealers, highway building equipment dealers motorboat dealers, motorcycle dealers, new car dealers, snowmobile dealers, trailer dealers and used car dealers need to post this bond as a part of the license application process. To view a copy of the bond form, click here. To view a copy of the Vermont motor vehicle dealer application, click hereApply for your Vermont dealers bond.

Virginia – The Commonwealth of Virginia requires that motor vehicle dealers post a $50,000 dollar bond as part of the licensing process.  To view a copy of the bond form, click hereApply for your Virginia dealers bond.

Washington – The State of Washington requires motor vehicle dealers, vessel dealers, registered tow truck operators, wreckers and vehicles manufacturers to post a surety bond.  For motor vehicle dealers, the bond amount will be $30,000, but the other licenses require varying bond amounts. To view a copy of their shared bond form, click hereApply for your Washington dealers bond.

Wisconsin – The State of Wisconsin requires motor vehicle dealers, motor vehicle salvage dealers, wholesalers, recreational vehicle dealers, auction dealers and moped dealers to post the Wisconsin Motor Vehicle Dealer Surety Bond. All dealers but the moped dealer must post a $25,000 bond to get their license. The moped dealer’s bond requirement is just $5,000.  To view a copy of the Wisconsin Motor Vehicle Dealer License Application, you can click hereApply for your Wisconsin dealers bond.

Wyoming – The State of Wyoming requires motor vehicle dealers to post a $25,000 Wyoming Motor Vehicle Dealer Surety Bond. The motor vehicle dealer bond is required for used vehicle dealers, new vehicle dealers and Wyoming based manufacturers. Apply for your Wyoming dealers bond.

 

How To Get a Motor Vehicle Dealer Bond

The cost of the Motor Vehicle Dealer Bond is as low as 1%, pending underwriter approval. Surety1 has access to the best surety markets available so we will be able to get you bonded quickly at the best possible price!

1. Complete an online application
2. One of our surety experts will call and email you with the firm quote and an agreement to sign.
3. Provide payment and your signed agreement, then you will receive your Motor Vehicle Dealer Bond!

If you have any questions, please call us at 877-654-2327.

Apply online now to get a free quote. We’ll do all the work for you and shop your bond request with 15+ Surety Markets in order to get you the best price!