The Tennessee Motor Vehicle Dealer Bond is a type of surety bond required to obtain a Motor Vehicle Dealers License in the state. The bond is a requirement of the STATE OF TENNESSEE
DEPARTMENT OF COMMERCE AND INSURANCE, MOTOR VEHICLE COMMISSION. The surety bond amount in Tennessee is $50, 000. Visit our Car Dealer License Guide to learn more about how to get your dealership licensed.
Minimum TN Motor Vehicle Dealer License Requirements
The surety bond is just one requirement to obtain a license to sell cars ion the state. Below is a list of the minimum requirements to become a licensed dealer on Tennessee.
- Established Place of Business – One must maintain a dedicated facility and display lot.
- Zoning Compliance – Written approval from local authority.
- Business Tax – Current Business Tax License (usually issued by county clerk)
- Financial Statement – CPA Prepared, Compilation showing minimum net worth of $10,000
- $50,000 Tennessee Motor Vehicle Dealer Bond – Click here to Apply Here
- Corporation/LLC/LLP/LP/Trust – Copy of Charter / Articles, etc.
- Certificate of Liability Insurance – Minimum amount $300,000
- Service Agreement – If no mechanical repair facility is located on-site, a Service Agreement with an operation repair garage is required.
- Sales Tax – A copy of the current Sales & Use Tax Certificate obtained by the Department of Revenue
- Financial Background Disclosure – Any one owning 5% or more of the dealership must complete a financial background disclosure form.
- Signage/Photos – – Signs must contain letters a minimum of eight (8) inches in height and include the entire dealership name and be permanently installed
- Salesperson Applications – All sales associates must complete an application.
- Conviction Record – If any owner, officer or director of a corporation has been convicted of a felony, the applicant must furnish a copy of the final judgment order/disposition signed by the
court of issuance in the jurisdiction of the conviction.
- Floor Plan Form – keep commission informed of the names of any inventory financiers, i.e. “floor planners” used by the dealership.
The price for the bond, also known as the bond premium, is only a small fraction of the bond amount. For more licensing information, visit Tennessee’s official site.
How to obtain a Tennessee Motor Vehicle Dealer Bond
At Surety1.com, we make it easy to obtain this surety bond. Our simple 3 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 Tennessee Motor Vehicle Dealer Bond will be shipped for the original signature required prior to turning the bond into the commission.
1 – The name of the applicant on the surety bond application must match exactly the full legal business name of applicant for the license.
Should you encounter any questions along the way, contact surety1.com at [email protected] or phone (877)654-2327
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. We also maintain an A+ rating from the Better Business Bureau.