Motor vehicle dealers are required to post a 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.
- Required by: Rhode Island Division of Motor Vehicles-Dealers’ License and Regulations Office
- Minimum Bond Amount: $50,000
- Maximum Bond Amount: Varies
- Valid: 1 year – Expires December 31st – Renewable
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 Rhode Island state laws and regulations along with the provisions of Chapter 1499 Public Laws of 1956.
If this bond is cancelled, the obligee must be notified of the cancellation at least 60 days prior to the cancellation date.
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:
- Surety bond
- License application
- Supporting application documents
- Zoning approval
- Proof of insurance
- License fees according to the fee schedule
All licensing fees are required by the obligee, not the surety company.
For more license information, visit Rhode Island’s official site.