Washington Motor Vehicle Dealer Bond

A Washington Vehicle/Vessel Dealer, Vehicle Manufacturer, Registered Tow Truck Operator, or Wrecker Business Bond, or Washington Motor Vehicle Dealer Bond is a type of surety bond required by the Washington State Department of Licensing (DOL) for all licensed motor vehicle dealers operating within the state. The bond amount is $30,000 and the cost of the surety bond is usually between 1% and 3% of the bond amount.

How to Get a Washington Motor Vehicle Dealer Bond

At Surety1.com we make it easy to obtain this surety bond. Our simple, three step process is:

1. Complete the easy to navigate and secure online application. ¹
2. Review the free, no obligation quote from one of Surety1’s professional surety bond agents, usually within one business day.
3. Sign some paperwork and pay the bond premium

Once these steps have been completed, the Washington Motor Vehicle Dealer Bond will be shipped to the bond applicant.
^{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.

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Who Needs this License and Surety Bond

Any business or auctioneer who buys or sells at wholesale or retail:

• New or used cars
• New or used trucks
• New or used motor homes

If you don’t have a dealer license, it’s illegal to:

• Sell more than 4 vehicles registered to you in any 12 months
• Buy and sell vehicles for the purpose of making a profit
• Sell any number of vehicles that aren’t registered to you

One of the requirements to obtain the necessary license is a to obtain a Washington Motor Vehicle Dealer Bond in the amount of $30,000.

Dealer License Requirements

Licensing requirements and additional supporting documents

• Business License Application.
• Vehicle Dealer Manufacturer Addendum.
• Washington Motor Vehicle Dealer Bond (Vehicle, Vessel, Vehicle Manufacturer, Registered Tow Truck Operator, or Wrecker Bond.)
• Financial/Source of Funds Statement for each sole proprietor, partner, or business entity.
  • If the business is a corporation, LLC, or LLP, submit one form that includes only the assets and liabilities of the business.
    • Note: Printed bank statements are not a substitute for the Financial/Source of Funds Statement. The form must be submitted for your application to be fully processed.
• Personal/Criminal History Statement for each owner, partner, corporate officer and member of the business.

To get a Motor Vehicle Dealer endorsement, you must have the following:

• $30,000 Washington Motor Vehicle Dealer Bond. Bonds are available here.
• Certificate of Dealer Education, as proof you have completed at least eight hours of approved training if selling used vehicles only.
  • For more information about how to obtain this certificate, call the Dealers division at 360-664-6466.
• Property tax statement (copy), or the rental/lease agreement for the business site, as proof of ownership.
  • The rental/lease agreement must be valid for at least one year.

All retail vehicle dealers are required to use the e–permitting system. Find out more about
e–permitting.

Motor Vehicle Dealer Sub-Agency

A Motor Vehicle Dealer Sub-Agency endorsement is required for each additional business location after the primary motor vehicle dealer business has been endorsed.

See business site and licensing requirements above for additional requirements.

Note: Sub-agencies are not required to submit a certificate of dealer education.

Licensing requirements

• Business License Application.
• Vehicle Dealer Manufacturer Addendum.
• Vehicle, Vessel, Vehicle Manufacturer, Registered Tow Truck Operator, or Wrecker Bond.

The information provided above is for general informational purposes only and does not constitute legal advice.  Do not rely solely on the information presented here as a substitute for professional legal counsel.