Auto Dealer Bond

Fast Approvals - Low Rates - All 50 States!
  • Also known as a Motor Vehicle Dealer Bond or a DMV bond
  • Required by each state to obtain your dealer license
  • Bond form and amount vary by states
How to get bonded
  • Apply Online
    Fill out our online application form.
  • Get Approved Instantly
    You will be sent your quote in minutes.
  • Pay and ship your bond
    We offer secure payment options.
Start Your Application
It's FREE. No Obligations. Approval in Minutes.

How much does an auto dealer bond cost?

Depending on the state, the required motor vehicle dealer bond amounts can vary widely, from as little as $5,000, up to $100,000. But these amounts are only the maximum coverage bonds provide for claimants.

Your auto dealer bond cost is a percentage of the total bond amount, usually between 0.75% and 3%. This means а $50,000 bond will cost you anywhere between $375 and $5,000 per year.

Auto Dealer Surety Bond Cost

This is the standard market rate for applicants with good credit and a clean credit report. The cost for less qualified applicants goes up to 3%-10%. However, your premium also depends on other specifics, such as your professional experience, and the overall financial strength of your business. The better these factors are, the smaller the cost will be.

Below is a breakdown of dealer bond premiums, based on some commonly-required total amounts:

Auto Dealer Surety Bond Cost

Credit Score
Bond Amount 700 650 - 699 600 - 649 Below 599
$10,000 $100-$150 $100-$300 $250-$500 $500-$1,000
$20,000 $150-$300 $200-$600 $500-$1,000 $1,000-$2,000
$25,000 $188-$375 $250-$750 $625-$1,250 $1,250-$2,500
$30,000 $250-$500 $300-$900 $750-$1,500 $1,500-$3,000
$35,000 $262.5-$525 $350-$1,050 $875-$1,750 $1,750-$3,500
$50,000 $375-$750 $500-$1,500 $1,250-$2,500 $2,500-$5,000
$75,000 $560-$1,125 $750-$2,250 $1,875-$3,750 $3,750-$7,500
$100,000 $750-$1,500 $1,000-$3,000 $2,500-$5,000 $5,000-$10,000

To verify what the total bond amount required in your state is, scroll down to the bottom of the page and select it on the interactive map.

Check out our surety bond cost guide for more detailed information about bond prices, and what you can do to lower your premium. Some ways include:

  • Cleaning up credit report red flags, such as tax liens or civil judgments
  • Showcasing liquid assets and strong financials
  • Carefully choosing your surety bond provider

The surety bond cost calculator on the right can also help you get an estimate of your yearly premium. For an exact quote, simply submit our online application.

Program for Bad Credit Dealer Bonds

If you have less-than-perfect credit, or even past bankruptcies, tax liens or civil judgments, Bryant Surety Bonds can still help you get bonded. We operate a bad credit surety bond program, which helps high-risk applicants get the bonds they need.

Call our surety agents at (866) 450-3412 and they’ll be happy to provide personalized advice on how you can build a strong application.

Who needs to get bonded?

Whether you need to get bonded or not depends on the specific regulations in your state. Some have different requirements for used-car, wholesale, auction and franchised dealers, for example. States may also require surety bonds for the licensing process of other type of related businesses, such as motorcycle, snowmobile and boat dealers, salvage dealers, salespersons, designated agents, parts recyclers, and others.

These types of surety bonds may not be referred to as auto dealer bonds, but they are in essence the same thing.

The table below contains specific information about the different types of dealer bonds in all 50 states.

Find the Auto Dealer Bond You Need

  • Alabama
    Motor Vehicle Dealer Bond
    Dept. of Revenue
  • Alabama
    Used Motor Vehicle Dealer, Reconditioner, Rebuilde
    Alabama Dept of Revenue
  • Alabama
    Designated Agent Bond
    Alabama Department of Revenue
  • Alabama
    Bond of Automotive Dismantler and Parts Recycler
    Alabama Department of Revenue
  • Alabama
    AMHC License/Permit
    Manufactured Housing Commission
  • Alabama
    Designated Agent-Non Dealer Bond
    Alabama D.O.R. Motor Vehicle Division
  • Alaska
    Motor Vehicle Dealer's/Buyer's Agent
    Division of Motor Vehicles
  • Alaska
    Motor Vehicle Dealer's/Buyer's Agent
    Division of Motor Vehicles
  • Arizona
    Vehicle Dealer Bond
    Motor Vehicle Division
  • Arizona
    Vehicle Dealer Bond
    Motor Vehicle Division
  • Arizona
    License / Mobile Home Dealer Bond
    State of Arizona, Office of Administration
  • Arizona
    Electronic Records Access
    Motor Vehicle Division
  • Arkansas
    New Motor Vehicle Dealer
    Motor Vehicle Commission
  • Arkansas
    New Motorcycle, ATV, Scooter, Utility Vehicle or L
    Arkansas Motor Vehicle Commission
  • Arkansas
    Used Motor Vehicle Dealer
    State Police - Special Services Section
  • California
    Retail Dealer
    Department of Motor Vehicles - Occupational Licens
  • California
    Wholesale Dealer
    Department of Motor Vehicles - Occupational Licens
  • California
    Financial Responsibility Bond
    CA DMV
  • California
    Retail Dealer
    Department of Motor Vehicles - Occupational Licens
  • California
    Business Partner Automation
    Registration Operations Division
  • California
    REGISTRATION SERVICE SURETY BOND
    California Registration Operations Division
  • California
    Vehicle Verifier
    State of California DMV
  • California
    Commercial Requester Account
    State of California DMV
  • California
    Yacht and Ship Broker Bond
    California Department of Boating and Waterways
  • California
    IRP Bonded Web User Bond
    Department Of Motor Vehicles, Motor Carrier Div.
  • Colorado
    Motor Vehicle Dealer
    Department of Revenue - Auto Industry Division
  • Colorado
    Motor Vehicle Dealer
    Department of Revenue - Auto Industry Division
  • Colorado
    Motor Vehicle Buyer Agent
    Dept of Revenue - Auto Industry Division
  • Colorado
    Home Sale Down Payment Bond
    Div. of Housing - Manufactured Home Registration
  • Connecticut
    Motor Vehicle Dealer
    Department of Motor Vehicles - Dealers & Repairers
  • Connecticut
    Motor Vehicle Dealer
    Department of Motor Vehicles - Dealers & Repairers
  • Connecticut
    Registration Issuance
    DMV- Dealers and Repairers Division
  • Delaware
    Motor Vehicle Dealer Bond
    Division of Revenue
  • Delaware
    Financing the Sale of Motor Vehice License
    State of Deleware
  • Delaware
    Motor Vehicle (Non-Dealer, Not Listed) Bond
    Division of Revenue
  • District of Columbia
    Motor Vehicle Dealer
    Department of Consumer & Regulatory Affairs
  • District of Columbia
    Repair Dealer
    Department of Consumer & Regulatory Affairs
  • District of Columbia
    Motor Vehicle Dealer
    Department of Consumer & Regulatory Affairs
  • District of Columbia
    Consumer Goods Repair Dealers Bond
    Department of Consumer & Regulatory Affairs
  • District of Columbia
    Auto Repossessor Bond
    DC Department of Consumer and Regulatory Affairs
  • District of Columbia
    Auto Repossessor Bond
    DC Department of Consumer and Regulatory Affairs
  • Florida
    Motor Vehicle Dealer
    Department of Highway and Motor Vehicles - Divisio
  • Florida
    Recreational Vehicle Dealer
    Department of Highway and Motor Vehicles - Divisio
  • Florida
    Franchise Motor Vehicle Dealer
    State of Florida
  • Florida
    Mobile Home Installer Bond
    FL - Mobile Home Installer Bond
  • Florida
    Motor Vehicle Dealer
    Department of Highway and Motor Vehicles - Divisio
  • Florida
    Recreational Vehicle Dealer
    Department of Highway and Motor Vehicles - Divisio
  • Florida
    Mobile Home Dealer
    Department of Highway Safety & Motor Vehicles
  • Florida
    Recreational Vehicle Manufacturer, etc.
    Department of Highway and Motor Vehicles - Divisio
  • Florida
    Yacht and Ship Broker's or Salesperson's
    State of Florida, Dept of Business and Professiona
  • Florida
    Private Rebuilt Vehicle Inspection Bond
    Department of Highway and Motor Vehicles - Divisio
  • Georgia
    Used Motor Vehicle & Parts Dealer
    State Board of Registration - Used Motor Vehicle
  • Georgia
    Used Parts Dealer
    State Board of Registration - Used Parts Division
  • Hawaii
    Motor Vehicle Dealer
    Motor Vehicle Industry Board - Department of Comme
  • Hawaii
    Motor Vehicle Dealer
    Motor Vehicle Industry Board - Department of Comme
  • Idaho
    Vehicle or Vessel Dealer
    Transportation Department
  • Idaho
    New and Used Manufactured/Mobile Home Dealer/Broke
    Idaho Division of Building Safety
  • Idaho
    Vehicle or Vessel Dealer
    Transportation Department
  • Illinois
    Designated Agent
    Secretary of State - Vehicle Services Department
  • Illinois
    Designated Agent
    Secretary of State - Vehicle Services Department
  • Illinois
    Remittance Agent's
    Illinois Secretary of State
  • Illinois
    Installment
    Vehicle Services Dept. Commercial & Farm Truck Div
  • Indiana
    Vehicle Merchandising Certificate Bond
    Indiana Secretary of State Dealer Division
  • Indiana
    Vehicle Merchandising Certificate Bond
    Indiana Secretary of State Dealer Division
  • Indiana
    Auto & Mobile Home Dealers (Used Only, No New) Bon
    State of Indiana Dealer Division
  • Iowa
    Motor Vehicle Dealer
    Department of Transportation
  • Iowa
    Motor Vehicle Dealer
    Department of Transportation
  • Kansas
    Motor Vehicle Dealer
    Department of Revenue - Division of Vehicles - Dea
  • Kansas
    Motor Vehicle Dealer
    Department of Revenue - Division of Vehicles - Dea
  • Kentucky
    Motor Vehicle Dealer
    Motor Vehicle Commission
  • Kentucky
    Motor Vehicle Dealer
    Motor Vehicle Commission
  • Kentucky
    Highway Use
    Dept. of Vehicle Regulation Div. of Motor Carriers
  • Local Government
    Second Hand Motor Vehicle Dealer Bond
    City Of New Bedford
  • Local Government
    Massachusetts Used Car Dealer's
    City of Gardner
  • Local Government
    Second Hand Motor Vehicle Dealer Bond
    Town of Uxbridge
  • Louisiana
    Motor Vehicle Dealer
    Recreational and Used Motor Vehicle Commission
  • Louisiana
    New Motor Vehicle Dealer Bond
    Lousiana Motor Vehicle Commission
  • Louisiana
    Motor Vehicle Dealer
    Recreational and Used Motor Vehicle Commission
  • Louisiana
    Auto Title
    Department of Public Safety
  • Louisiana
    Department of Public Safety & Corrections Office o
    LA Dept of Public Safety and Corrections
  • Louisiana
    Offical Motor Vehicle Inspection Station Bond
    LA Dept of Public Safety and
  • Louisiana
    Recreational Products Dealer Bond
    Louisiana Motor Vehicle Commission
  • Maine
    Motor Vehicle Dealer
    Bureau of Motor Vehicles - Dealer and Agent Servic
  • Maine
    Motor Vehicle Dealer
    Bureau of Motor Vehicles - Dealer and Agent Servic
  • Maryland
    Vehicle or Trailer Dealer Bond
    Motor Vehicle Administration
  • Maryland
    Boat Dealer
    Dept of Natural Resources, Licensing & Registratio
  • Maryland
    Vehicle or Trailer Dealer
    Motor Vehicle Administration
  • Maryland
    Title Service Agent
    Motor Vehicle Administration
  • Maryland
    Boat Dealer Bond
    Dept of Natural Resources Licensing & Registration
  • Maryland
    Motor Vehicle Manufacturer
    State of Maryland
  • Maryland
    Credit Hauling Bond
    State Highway Administration
  • Maryland
    Motor Vehicle Repair Facility License
    Prince George's County
  • Massachusetts
    MASSACHUSETTS USED CAR DEALER?S
    City of Boston, MA
  • Massachusetts
    Used Car Dealer's
    Town of Dighton
  • Massachusetts
    Town of Barnstable, MA Used Car Dealer's Bond
    Town of Barnstable Licensing Division
  • Massachusetts
    Abington, MA Used Car Dealer's
    Town of Abington
  • Massachusetts
    Taunton, MA Used Car Dealer's
    City of Taunton
  • Massachusetts
    Fall River, MA Used Car Dealer's
    City of Fall River
  • Massachusetts
    Middleton, MA Used Car Dealer's
    Town of Middleton
  • Massachusetts
    Medford, MA Used Car Dealer's
    City of Medford
  • Massachusetts
    Worcester, MA Used Car Dealer's
    City of Worcester
  • Massachusetts
    Lawrence, MA Used Car Dealer's
    City of Lawrence
  • Massachusetts
    Peabody, MA Used Car Dealer's
    City of Peabody
  • Massachusetts
    Hampden, MA Used Car Dealer's
    Town of Hampden
  • Massachusetts
    North Andover, MA Used Car Dealer's
    Town of North Andover
  • Massachusetts
    Attleboro, MA Used Car Dealer's
    City of Attleboro
  • Massachusetts
    Natick, MA Used Car Dealer's
    Town of Natick
  • Massachusetts
    Boston, MA Used Car Dealer's
    City of Boston
  • Massachusetts
    Milford, MA Used Car Dealer's
    Town of Milford
  • Massachusetts
    Malden, MA Used Car Dealer's
    City of Malden
  • Massachusetts
    Salisbury, MA Used Car Dealer's
    Town of Salisbury
  • Massachusetts
    Danvers, MA Used Car Dealer's
    Town of Danvers
  • Massachusetts
    Westport, MA Used Car Dealer
    Town of Westport, MA
  • Massachusetts
    North Attleboro, MA Used Car Dealer
    Town of North Attleboro
  • Massachusetts
    Framingham, MA Used Car Dealer
    Town of Framingham
  • Massachusetts
    Marlborough, MA Used Car Dealer
    Department of Municipal Licensing
  • Massachusetts
    Groton, MA Used Car Dealer
    Town of Groton
  • Massachusetts
    Franklin, MA Used Car Dealer
    Town of Franklin
  • Massachusetts
    Carver, MA Used Car Dealer
    Town of Carver Licensing Authority
  • Massachusetts
    Lynn, MA Used Car Dealer's
    City of Lynn, City Clerks Officer
  • Massachusetts
    Somerset, MA Used Car Dealer's
    City Of Somerset
  • Massachusetts
    Auburn, MA Used Car Dealer's Bond
    Town of Auburn
  • Massachusetts
    Auto & Mobile Home Dealers (Used Only, No New) Bon
    City of Cambridge
  • Massachusetts
    Rockland, MA Used Car Dealer's
    Town of Rockland
  • Massachusetts
    Mendon, MA Used Car Dealer's Bond
    Town of Mendon
  • Massachusetts
    Haverhill, MA Used Car Dealer's Bond
    Town of Haverhill
  • Massachusetts
    Dudley, MA Used Car Dealer's Bond
    Town Of Dudley, MA
  • Massachusetts
    Randolph, MA Used Car Dealer
    Town of Randolph
  • Massachusetts
    Bourne, MA Used Car Dealer's Bond
    Town of Bourne
  • Massachusetts
    Stoughton, MA Used Car Dealer Bond
    Town of Stoughton
  • Massachusetts
    Westfield, MA Used Car Dealer's
    City of Westfield
  • Massachusetts
    Amherst, MA Used Car Dealer's
    Town of Amherst
  • Massachusetts
    Used Car Dealer's Bond
    Town Of Reading
  • Massachusetts
    Wareham, MA Used Car Dealer's Bond
    Town of Wareham
  • Massachusetts
    Southwick, MA Used Car Dealer's Bond
    Town of Southwick
  • Massachusetts
    Town of Oxford, MA Used Car Dealer Bond
    Town Of Oxford
  • Massachusetts
    Saugus, MA Used Car Dealer Bond
    City Of Saugus
  • Massachusetts
    Used Car Dealer's Bond
    Town of Gill, MA
  • Massachusetts
    Orange, MA Used Car Dealer Bond
    Town of Orange
  • Massachusetts
    Swansea, MA Used Car Dealer Bond
    Town of Swansea
  • Massachusetts
    Town of Hopedale, MA Used Car Dealer Bond
    Town of Hopedale
  • Massachusetts
    Town of Easton, MA Used Car Dealer Bond
    Town of Easton
  • Massachusetts
    Town of Needham, MA Used Car Dealer Bond
    Town of Needham
  • Massachusetts
    Town of Yarmouth, MA Used Car Dealer Bond
    Town of Yarmouth
  • Massachusetts
    Town of Walpole, MA Used Car Dealer Bond
    Town of Walpole
  • Massachusetts
    Town of Rowley, MA Used Car Dealer's Bond
    Town Of Rowley
  • Massachusetts
    West Bridgewater, MA Used Car Dealer's Bond
    Town of West Bridgewater
  • Massachusetts
    Town Of Raynham, MA Used Car Dealer's Bond
    Town Of Raynham
  • Massachusetts
    Town of Winchendon, MA Used Car Dealer's Bond
    Town of Winchendon
  • Massachusetts
    Town of Barnstable, MA Used Car Dealer's Bond
    Town of Barnstable
  • Massachusetts
    City of Agawam, MA Used Car Dealer's Bond
    City of Agawam
  • Massachusetts
    City of Somerset, MA Used Car Dealer's Bond
    City of Somerset
  • Massachusetts
    Town of North Oxford, MA Used Car Dealer's Bond
    Town of North Oxford
  • Massachusetts
    City of Somerville, MA Used Car Dealer's Bond
    City of Somerville
  • Massachusetts
    Town of Kingston, MA Used Car Dealer's Bond
    Town of Kingston
  • Massachusetts
    Town of Andover, MA Used Car Dealer's Bond
    Town of Andover
  • Massachusetts
    Town of Franklin, MA Used Car Dealer's Bond
    Town of Franklin
  • Massachusetts
    City of Leominster, MA Used Car Dealer's Bond
    City of Leominster
  • Massachusetts
    City of Melrose, MA Used Car Dealer's Bond
    City of Melrose
  • Massachusetts
    City of Pittsfield, MA Used Car Dealer's Bond
    City of Pittsfield
  • Massachusetts
    Electric Vehicle Registration Permit Bond
    Commonwealth of Massachusetts, RMV
  • Michigan
    Uniform Vehicle Dealer
    Department of State
  • Michigan
    Motor Vehicle Dealer
    Department of State
  • Michigan
    Uniform Manufactured Housing Retailer's Bond
    Michigan - Department of State
  • Michigan
    Uniform Manufactured Housing Retailer's Consumer D
    Dept of Licensing and Regulatory Affairs
  • Minnesota
    Motor Vehicle Dealer
    Department of Public Safety - Driver and Vehicle S
  • Minnesota
    Manufactured Home Dealer
    Minnesota Department of Labor and Industry
  • Minnesota
    Motor Vehicle Dealer
    Department of Public Safety - Driver and Vehicle S
  • Mississippi
    New Motor Vehicle Dealer
    Motor Vehicle Commission
  • Mississippi
    Designated Agent
    Department of Revenue
  • Mississippi
    New Motor Vehicle Dealer
    Motor Vehicle Commission
  • Mississippi
    Designated Agent Bond
    Department of Revenue
  • Mississippi
    Designated Agent Bond
    Department of Revenue
  • Mississippi
    Manufactured Housing
    Commissioner of Insurance
  • Missouri
    Motor Vehicle Dealer
    Motor Vehicle Bureau - Dealer Licensing Section
  • Missouri
    Motor Vehicle Dealer
    Motor Vehicle Bureau - Dealer Licensing Section
  • Missouri
    Used Vehicle Dealer Bond (Springfield, MO)
    City of Springfield License Divisio
  • Montana
    Motor Vehicle Dealer
    Title and Registration Bureau
  • Montana
    Motor Vehicle Dealer
    Title and Registration Bureau
  • Nebraska
    50K Motor Vehicle Dealer
    Motor Vehicle Industry Licensing Board
  • Nebraska
    25K Motor Vehicle Dealer
    Motor Vehicle Industry Licensing Board
  • Nebraska
    Motor Vehicle Dealer (K)
    Motor Vehicle Industry Licensing Board
  • Nebraska
    Motor Vehicle Dealer (K)
    Motor Vehicle Industry Licensing Board
  • Nevada
    Vehicle Industry Business License Bond
    Occupational and Business Licensing
  • Nevada
    Vehicle Industry Business License Bond
    Occupational and Business Licensing
  • Nevada
    Vehicle Industry Business License
    Nevada - Occupational and Business Licensing
  • Nevada
    Body Shop or Garage Business License Bond
    Occupational and Business Licensing
  • Nevada
    Specialty License Plate Bond
    Nevada Department of Motor Vehicles
  • Nevada
    Vehicle Registration Program Bond
    Occupational and Business Licensing
  • New Hampshire
    Motor Vehicle Dealer
    Division of Motor Vehicles - Dealer Licensing Bure
  • New Hampshire
    Motor Vehicle Dealer
    Division of Motor Vehicles - Dealer Licensing Bure
  • New Jersey
    Motor Vehicle Dealer
    Division of Motor Vehicles - Dealer Licensing Bure
  • New Jersey
    Used Motor Vehicle Dealer Surety
    Division of Motor Vehicles - Dealer Licensing Bure
  • New Mexico
    Vehicle Dealer or Auto Recycler
    Motor Vehicle Division
  • New Mexico
    Vehicle Dealer or Auto Recycler
    Motor Vehicle Division
  • New Mexico
    Title Service Company Bond
    Motor Vehicle Division
  • New York
    Motor Vehicle Dealer
    Department of Motor Vehicles
  • New York
    Automobile Brokers Bond
    Department of State
  • New York
    Auto & Mobile Home Dealers (New & Used) Bond
    Obligee info for this request was wrong
  • New York
    Motor Vehicle Dealer
    Department of Motor Vehicles
  • New York
    Executive Law Article 21-B
    New York State Deaprtment of State
  • New York
    Second Hand Vehicle Sales
    Town of Hempstead
  • North Carolina
    Motor Vehicle Dealer
    Division of Motor Vehicles - License & Theft Burea
  • North Carolina
    Manufactured Housing Dealers
    Dept of Insurance Division of Motor Vehicle
  • North Carolina
    Motor Vehicle Dealer
    Division of Motor Vehicles - License & Theft Burea
  • North Dakota
    Motor Vehicle Dealer
    Department of Transportation - Motor Vehicle Divis
  • North Dakota
    Mobile Home and Manufactured Home Dealer Bond
    Department of Transportation
  • North Dakota
    Motor Vehicle Dealer
    Department of Transportation - Motor Vehicle Divis
  • Ohio
    Deputy Registrar
    Department of Public Safety - Bureau of Motor Vehi
  • Oklahoma
    Wholesale Motor Vehicle Dealer's Bond
    Used Motor Vehicle & Parts Commission
  • Oklahoma
    Used Motor Vehicle Dealer
    Used Motor Vehicle and Parts Commission
  • Oklahoma
    Used Traile, Automobile, Merchandise Salvage or Se
    The City of Oklahoma City-Licensing Division
  • Oklahoma
    Used Motor Vehicle Salesperson's Bond
    Used Motor Vehicle and Parts Commission
  • Oklahoma
    Manufactured Home Manufacturer's Bond
    Used Motor Vehicle and Parts Commission
  • Oklahoma
    Motor License Agent Bond
    Oklahoma Tax Commission
  • Oregon
    Motor Vehicle Dealer
    Department of Transportation - Driver and Motor Ve
  • Oregon
    Manufactured Structures Dealer Bond
    Department of Consumer & Business Services
  • Oregon
    Dismantler or Rebuilder of Vehicles
    Department of Transportation - Driver and Motor Ve
  • Oregon
    Motorcycles, Mopeds, Snowmobiles, ATV
    Dept of Transportation Driver and Motor Vehicle Se
  • Oregon
    Disseminator Bond
    State of Oregon, Dept of Transportation
  • Pennsylania
    Dealer/Agent/Messenger/Salvor
    Department of Transportation - Bureau of Motor Veh
  • Pennsylania
    Dealer/Agent/Messenger/Salvor
    Department of Transportation - Bureau of Motor Veh
  • Pennsylvania
    New, New & Used, Auto, & Mobile Home Dealers
    Dept of Transportation
  • Pennsylvania
    SURETY BOND (Hauling)
    Commonwealth of Pennsylvania
  • Pennsylvania
    Sales Finance Company Bond
    Pennsylvania Department of Banking
  • Pennsylvania
    Official Inspection Station Certificate of Appoint
    Manager of the Vehicle Inspection Division
  • Rhode Island
    Dealer's License
    Division of Motor Vehicles - Dealer's License & Re
  • Rhode Island
    Dealer's License
    Division of Motor Vehicles - Dealer's License & Re
  • South Carolina
    Motor Vehicle Dealer
    Department of Motor Vehicles - Dealer Licensing &
  • South Carolina
    Motor Vehicle Dealer
    Department of Motor Vehicles - Dealer Licensing &
  • South Dakota
    Vehicle Dealer
    Division of Motor Vehicles
  • South Dakota
    Vehicle Dealer
    Division of Motor Vehicles
  • State of Arizona
    Title Service
    Dealer Licensing Unit, Motor Vehicle Division
  • Tennessee
    Motor Vehicle Dealer
    Motor Vehicle Commission
  • Tennessee
    Dealer of Manufactured Homes
    Motor Vehicle Commissioner
  • Tennessee
    Motor Vehicle Auction
    Motor Vehicle Commission
  • Tennessee
    Motor Vehicle Dealer
    Motor Vehicle Commission
  • Tennessee
    Motor Vehicle Auction
    Motor Vehicle Commission
  • Tennessee
    Manufactured Home Stabilizing System Installer Bon
    Tennessee Motor Vehicle Commission
  • Tennessee
    Modular Building Units Installer Bond
    STATE FIRE MARSHAL’S OFFICE
  • Tennessee
    Modular Building Units Dealer Bond
    State Fire Marshal's Office - Codes Enforcement
  • Texas
    Motor Vehicle Dealer
    Department of Transportation - Motor Vehicle Divis
  • Texas
    Continuous Manufactured Housing License
    Dept of Housing and Conmmunity Affairs - MHD
  • Utah
    Motor Vehicle Dealer, Crusher, Body Shop
    Motor Vehicle Enforcement Division
  • Utah
    Motor Vehicle Dealer, Crusher, Body Shop
    Motor Vehicle Enforcement Division
  • Utah
    Factory Built Housing Dealer Bond
    Division of Occupational an professional Licensing
  • Vermont
    Motor Vehicle Dealer
    VT DOT - Agency of Transportation
  • Virginia
    Motor Vehicle Dealer
    Motor Vehicle Dealer Board
  • Virginia
    Motorcycle, Trailer or T&M Vehicle Dealer
    Department of Motor Vehicles
  • Virginia
    Motor Vehicle Dealer
    Motor Vehicle Dealer Board
  • Virginia
    Passenger Carrier/Broker
    Department of Motor Vehicles
  • Virginia
    Extended Service Contract Provider/Obligor
    Vehicle Investment Protection, Inc.
  • Virginia
    Household Goods Carrier
    Commonwealth of Virginia
  • Washington
    Vehicle, Vessel, Vehicle Manufacturer,
    Department of Licensing
  • Washington
    Vehicle, Vessel, Vehicle Mfgr, Reg Tow Truck Oper
    Department of Licensing
  • Washington
    Vehicle, Vessel, Vehicle Mfgr, Reg Tow Truck Oper
    Department of Licensing
  • West Virginia
    Motor Vehicle Dealer
    Division of Motor Vehicles - Dealer Services
  • West Virginia
    Motor Vehicle Dealer
    Division of Motor Vehicles - Dealer Services
  • Wisconsin
    Motor Vehicle Dealer
    Department of Transportation
  • Wisconsin
    Motor Vehicle Dealer
    Department of Transportation
  • Wyoming
    Motor Vehicle Dealer
    Department of Transportation - Motor Vehicle Servi
  • Wyoming
    Motor Vehicle Dealer
    Department of Transportation - Motor Vehicle Servi
  • Wyoming
    Wyoming Based Manufacturer Bond
    Wyoming Department Of Transportation

Regardless of the type of auto dealer bond you need, it’s illegal to operate your business without it. Your license application will not be complete without one, and selling cars without a valid surety bond can lead to the revocation of your license.

What is the purpose of the car dealer bond?

Simply put, auto dealer bonds are required to protect consumers against fraudulent or unethical business practices a dealer may engage in. These include (but are not limited to):

  • Tampering with the odometer
  • Providing false information about the vehicle’s condition
  • Failure to honor oral or written warranties
  • Engaging in deceptive financing methods, such as “yo-yo” financing
  • Not paying state sales tax or other applicable fees
  • Not reporting sales
  • Failing to adhere by the conditions of your license type

Don’t forget: It’s a binding agreement

An auto dealer surety bond is a binding contractual agreement between three parties: the obligee (the state requiring the bond), the principal (the auto dealer), and the surety (the provider of the bond).

Auto Dealer Bond Agreement

It’s important not to confuse your auto dealer bond with the insurance you need to buy for your lot. Think of the bond as a line of credit extended to your business by the bonding company.

A claim can be made on the dealer bond, if your dealership doesn’t follow all applicable laws and regulations. If a legitimate claim is filed against your dealership, the surety will pay all relevant costs up to the amount of the surety bond it had underwritten for you. However, you will have to reimburse these costs later on, which means avoiding claims is the best course of action.

Bond application and forms

Getting your DMV bond– as it’s often called– is a straightforward process. You can apply online and get a quote in minutes, or call (866)-450-3412 and one of our auto dealer bond experts will guide you through the application process.

To get your exact bond price, you may have to supply a few required personal and financial documents, such as:

  • Personal financial statements
  • Business financial statements
  • Proof of liquid asset ownership
  • Resumé

These may be necessary, so that the surety bond company can make a better assessment of your business’s likelihood of triggering and paying back claims. So if you have good financials and liquid assets, such as cash on hand, demonstrating them can lower your bond costs. The same is true for your industry experience: a resume that shows you’re seasoned in the industry is a strong signal of trustworthiness.

After the surety assesses the overall status of your business, you will need to sign an indemnity agreement, as well as your state’s required bond form. We have all dealer bonds on file, so we can fill yours out for you and all you have to do is sign it. Licensing agencies usually only accept the original bond form, though we recommend keeping a copy for your personal records.

That’s a basic overview of the application process. Once issued, you will have to renew your bond yearly or biannually, depending on the state in which you operate.

Renewal Deadlines

Some states don't have predetermined expiration dates on their motor vehicle dealer bonds. Instead, dealer bonds in these cases are valid for one year since the issue date. Others have a fixed expiration date for all car dealer bonds at some point of the year, meaning they need to be renewed prior to that date. To stay up-to-date, check out the dates for your particular state below.

Auto Dealer Bond Renewal Deadlines by Month
March 31st Dealers in New Jersey and New Mexico renew their bonds before March 31st each year, whereas Georgia dealers only need to do it on even years.
April 30th Florida dealer bonds expire on that date each year.
June 30th Bond renewal is due before June 30th for West Virginia car dealers.
September 30th Renewal deadline for all Alabama dealers.
December 31st Dealer bonds expire on December 31st for the followings states: Illinois, Kansas, Louisiana, Missouri, Montana, Nebraska, Oklahoma, Rhode Island.
Other deadlines Other non-continuous dealer bonds don’t have a fixed date, but they do have expiration dates nonetheless. Oregon dealer bonds, for example, are valid for 3 years and expire on the last day of the month they were issued. The same is true for Texas and Tennessee dealer bonds, though their validity is 2 years.

Renewal Application

The renewal application is similar to the initial application but shorter. You’ll get a new quote, which may be lower if your financial or credit situation has improved over the past year.

If you have acquired your dealer bond with Bryant Surety Bonds, we make sure you never forget a deadline by sending several reminders– 30, 60 and 90 days ahead of the deadline. It is advisable to renew your bond as early as possible. You may have to pay late or reinstatement fees if you miss your deadline, or you may have to start the application process from the beginning.

Further Reading

Popular Types of Auto Dealer Bonds

Below are some of the most commonly requested car dealer bonds.

Texas

All Texas dealers need to post a $25,000 bond and pay premiums once every two years.

Florida

The Department of Highway Security requires a $25,000 dealer bond from all licensed dealers in the state.

California

Retail dealers need a $50,000 bond, while the amount goes down to $10,000 for motorcycle, all-terrain and wholesale-only dealers.

Georgia

Used-car dealers in the state need to have a valid $35,000 bond. For used car parts dealers the amount is $10,000.

New York

Both new and used-car dealers need a surety bond to get licensed, however the amounts are different. Used-car dealer bond amounts can be either $10,000 or $25,000, while bonds for franchised dealers are fixed at $50,000.

Illinois

The process of getting licensed as a designated agent in Illinois involves posting a $20,000 surety bond.

How to Become an Auto Dealer

States have varying requirements for auto dealers. While posting a motor vehicle dealer bond is always one of them, there are a number of others that you will need to fulfill before you can get your license. Some of the common ones include:

  • Buying garage liability insurance
  • Passing a background check
  • Paying application fees
  • Getting a zoning approval
  • Displaying a business sign

Check with your state licensing authority, because licensing requirements can differ greatly from state to state. We have created dealer licensing guides for several states, which you are welcome to use as reference: