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.
The price for the bond, also known as the bond premium, is only a small fraction of the bond amount.
New auto dealers must file a bond valid for 25 months, and existing auto dealers must file a 24 month bond.
This bond guarantees the principal will abide by all Tennessee state laws and regulations along with all laws outlined in Tennessee Code Annotated 55-17-111.
If the surety bond is to be cancelled, the obligee must be notified of the cancellation at least 60 days before 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:
All licensing fees are required by the obligee, not the surety company.
For more licensing information, visit Tennessee’s official site.