Oregon Motor Vehicle Dealer Surety Bond

Motor vehicle dealers are required to post a Oregon 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.

 

Surety Bond

• Required by: Oregon Department of Transportation
• Minimum Bond Amount: $2,000 (motorcycle, moped, all-terrain)
• Maximum Bond Amount: $40,000 (motor and recreational vehicles)
• Valid: Continuous – Renewable

Changes to Oregon Motor Vehicle Dealer bond amounts effective January 1,2018

The governor signed SB 974 into law, with an effective date of January 1, 2018. The bill amends ORS 822.020 and 822.030. Here are the highlights:

• Raises the bond amount from $40,000 to $50,000 (applies to new dealer certificates issued on or after January 1, 2018);

• Decreases the amount a non-retail claimant can recover to $10,000;

• For dealers dealing exclusively in motorcycles, mopeds, Class I all-terrain vehicles or snowmobiles, the bond is increased to $10,000 but only retail customers can bring a claim against the bond.

This bond guarantees the principal will abide by all Oregon state laws and regulations along with all laws in Oregon Revised Statutes, Chapter 882.

The price for the bond, also known as the bond premium, is only a small fraction of the bond amount.

The applicant should verify the bond amount with the obligee before applying for the bond to ensure the bond amount is correct.

Since this bond is continuous, it remains in full force and effect until cancelled. If it is cancelled, the obligee must be notified of the cancellation at least 20 days before the cancellation date.

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)

Licensing

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:

• Surety bond
• License application
• Supporting application documents
• Proof of liability insurance
• Copy of education certificate
• $1,187,00 license fee + $350 for each additional business location
• Principal’s dealer history
• Business location

All licensing fees are required by the obligee, not the surety company.

For more licensing information, visit Oregon’s official page.