The State of Oregon requires all vehicle dealers to be licensed. The bond is not in place to protect the dealer, but is in place to protect the “people” from the dealer. The actual wording in the bond is as follows:
THE CONDITION OF THIS OBLIGATION IS SUCH THAT WHEN THE ABOVE NAMED PRINCIPAL(S) IS ISSUED A VEHICLE DEALER CERTIFICATE TO CONDUCT, IN THIS STATE, A BUSINESS AS A DEALER OR REBUILDER OF VEHICLES, SAID PRINCIPAL(S) SHALL CONDUCT SUCH BUSINESS WITHOUT FRAUD OR FRAUDULENT REPRESENTATION, AND WITHOUT VIOLATION OF ANY
OF THE PROVISIONS OF THE OREGON VEHICLE CODE SPECIFIED IN ORS 822.030(2)
This is pretty clear and concise; abide by ORS 822.030 or face a claim on the bond.
The dealership and usually its owners guarantee the surety bond and will be asked to repay the surety if it suffers a loss on the surety bond. The amount of the bond is $40,000.00 for a “standard” dealer ship and $2,000.00 for a Motorcycle, Moped, Snowmobile and/or ATVs only. The bond runs concurrently with the license term, however can be cancelled by the surety by giving 30 days notice. The cost of the surety bond is as low as 1% per year* and Surety1 has many markets offering this type of bond and can often get a quote to you the same day the bod is applied for.