Motor vehicle dealers are required to post an Oregon Motor Vehicle Dealer Bond as part of the process to license the dealership. This is a type of surety bond and 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. The bond is required by the Oregon Department of Transportation Motor Vehicle Dealer Services.
The cost of the surety bond is usually between 1% and 3% of the bond amount, subject to a minimum premium and fees of $150. Surety1 will shop its many markets to procure the right price at the right terms.
How to Get an Oregon Motor Vehicle Dealer Bond
At Surety1.com we make it easy to obtain this surety bond. Our simple, three step process is:
- Complete the easy to navigate and secure online application. 1
- Review the free, no obligation quote from one of Surety1’s professional surety bond agents, usually within one business day.
- Sign some paperwork and pay the bond premium
Once these steps have been completed, the Oregon Motor Vehicle Dealer Bond will be shipped to the bond principal (licensee).
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. For information on license and surety bond requirements for motor vehicle dealers in other states, click here.
- Required by: Oregon Department of Transportation
- Minimum Bond Amount is $10,000: This is the required bond amount for dealers who sell motorcycles, ATVs, mopeds, and snowmobiles.
- Maximum Bond Amount is $50,000: This is the required bond amount for dealers who sell cars, trucks, and RVs
The purpose of the bond is to protect consumers from financial harm if the dealer engages in fraudulent or illegal activities, such as:
- Selling vehicles with undisclosed damage or defects
- Failing to properly register and title vehicles
- Failing to deliver titles to buyers
- Misappropriating funds
If the dealer violates the terms of the bond, the consumer can file a claim and be compensated for their losses. If the surety company pays a claim on the bond, it will seek restitution from the bond principal (licensee).
Physical Requirements of a Motor Vehicle Dealer Location in Oregon
The state has specific requirements for the actual location of the dealership. Therese include:
- Sufficient space to display one or more vehicles
- Provide a means for the public to contact the dealer or an employee of the dealer at all times during the dealer’s normal business hours
- Display an exterior sign permanently affixed to the land or a building.
- The display must identify the dealership by the name shown on the vehicle dealer certificate
- Have displayed, in a publicly accessible and conspicuous manner, the vehicle dealer certificate (License)
Oregon Motor Vehicle Dealer License Requirements
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:
- Complete the pre-licensing education course.
- Obtain a Oregon Motor Vehicle Dealer Bond.
- Obtain liability insurance.
- Obtain a business license from your city or county.
- Find a physical location for your dealership.
- Hire a qualified salesperson.
- Apply for a used car dealer license from the Oregon DMV.
For more licensing information, visit Oregon’s official page.