Motor vehicle dealers in the state are required to post a North Carolina Motor Vehicle Dealer Bond as part of the process to license the dealership. 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. This bond guarantees the principal will abide by all North Carolina state laws and regulations along with the laws outlined in Articles 12 and 15 of Chapter 20 of the North Carolina General Statutes. The applicant should verify the bond amount with the obligee before applying for the bond to ensure the bond amount is correct. If the bond is to be cancelled, a written notice of cancellation must be submitted to the obligee at least 30 days before the cancellation date.
Licensing, MINIMUM DEALER LICENSE REQUIREMENTS.
- Have an “established salesroom” (Retail) containing at least 96 square feet of floor space in a permanent, enclosed building, or separate and apart from any living quarters, residence, or other business and having a separate entrance.
- Have an “established office” (Wholesaler) containing at least 96 square feet of floor space in a permanent, enclosed building or structure which is accessible to Division personnel and is a place where books, records and files are required to be kept.
- Established salesroom and/or established office is required to be in compliance with all State, County and Municipal zoning ordinances or regulations.
- A sign designating the trade name of the business in block letters not less than three inches in height on a contrasting background.
- Must furnish a North Carolina Motor Vehicle Dealer Bond, which is a type of corporate surety bond. The bond amount is fifty thousand dollars ($50,000) for one established salesroom and twenty-five thousand dollars ($25,000) for each additional established salesroom.
- The Division must have evidence of an assumed name being filed with the Register of Deeds in the county in North Carolina where the business is maintained when such business is operated under any designation, name or style other than the real name of the owner or owners thereof or under its corporate name as it would appear on the dealer license certificate.
- If the business will be conducted as a corporation, articles of incorporation must have been filed with the North Carolina Secretary of State. The first page of the corporate charter must accompany application for license. A foreign corporation must procure a certificate of authority from the North Carolina Secretary of State before being licensed to operate in this State.
- Have a comprehensive liability insurance company policy or Garage Coverage Form-Automobile Dealer Supplementary Schedule policy number or binder number from the insurance company to cover dealer plates.
- Application for license must accurately describe the physical location of the business such as; street name, street number, city, state and zip code. If a post office box number or rural route number is used, the above information must be included. It is not permissible to have a mailing address different from the actual location of the business. Wholesale applicants must supply the Division with a telephone number at which such business may be contacted by agents of the Division concerning records and sales transactions.
- Applicants for a “used motor vehicle” dealer’s license must show proof that within the last twelve months they have completed a 12-hour licensing course approved by the Division if seeking an initial license, and a 6-hour course approved by the Division if seeking a renewal of license.
- Prior to license being issued, all of the above requirements must be in compliance and the established salesroom and/or office must be inspected and approved by the agent of the License and Theft Bureau. The record of inspection must accompany the application for license.
License Fees (collected by North Carolina)
- Dealer/Wholesale/Distributor $97.00
- Factory Branch License Certificate: $140.25
- Manufacture License Certificate: $210.25
- Sales/Factory Representative: $21.50
- Dealer Plate (first five plates): $38.75 each plate, each additional: $19.50 each plate
- Dealer Transporter Plate: $19.50 each plate
- Temporary Markers: $25.00 per set of 25
How to obtain a North Carolina Motor Vehicle Dealer Bond
At surety1.com, we make it easy to obtain the required surety bond:
- Complete our easy to navigate and secure online application.1
- Review your free, no obligation quote form one of our surety bond professional agents, usually within 1 business day.
- Sign some paperwork and make payment (all major credit cards accepted).
After these simple steps have been completed, the North Carolina Motor Vehicle Dealer Bond will be shipped to you via traceable mail. You must sign the bond prior to sending it to the North Carolina Division of Motor Vehicles Dealer Unit.
(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 and maintains an A+ rating from the Better Business Bureau.