Alabama Auto Dealer Bond Requirements

Auto dealers in Alabama are required to get a $50,000 surety bond. The bond serves as a financial guarantee that dealers will comply with the local DMV requirements.

Bond Name: Alabama Motor Vehicle Dealer Bond/Buyer’s Agent Bond
Bond Amount: $50,000 Obligee: Alabama Department of Revenue Motor Vehicle Division PO Box 327643 Montgomery, AL 36132-7643 Expiration Date: September 30 every year

Obtaining an Alabama auto dealer bond is part of the licensing requirements for all dealers applying for, or renewing, the following licenses:

  • New and Used motor vehicle dealers
  • Wholesale dealers
  • Reconditioners and Rebuilder
  • Motorcycle and Trailer dealers

For all of the above licenses, a $50,000 dealer bond must be posted. Since the bond is a continuous one, a continuation certificate has to be submitted upon yearly renewal of the auto dealer license. The bond, the continuation certificate, and the license application documents must all be submitted to the Alabama Department of Revenue.

Alabama Auto Dealer Bond Cost

The cost of your Alabama auto dealer bond is a small percentage of the $50,000 bond amount. It is determined mostly on the basis of your personal credit score. If you have a high personal credit score, the cost of your bond will range between 1% and 3%, or between $500 and $1,500.

The table below shows a ballpark estimate of the cost of your Alabama auto dealer bond based on your credit score.

Alabama Auto Dealer Bond Cost by Credit Score
Surety Bond Name Bond amount Above 700 Between 650-700 Between 600-650 Below 600
Alabama Auto Dealer Bond $50,000 $500-$1,000 $750-$1,500 $1,000-$2,000 $1,500-$3,500

To get a free exact quote for your Alabama auto dealer bond, simply complete our online application (it takes minutes) or call one of our surety bond experts at (866)-450-3412.

If you want to learn more about surety bond rates and how they are calculated, visit our surety bond cost page.

Bad Credit Dealer Bonds in Alabama

With our Bad Credit Surety Bonds Program you can still get bonded even if you have less than perfect credit score, tax liens, bankruptcies or other financial issues.

Due to the greater risk involved for the surety providers, the rates for applicants with lower credit scores can range between 5% and 7% of the bond amount. Nevertheless, we always do our best to find the lower rate possible for all our applicants.

Alabama Auto Dealer Bond Renewal

Auto dealers in Alabama need to renew their license and bond before September 30 every year. Make sure to start your renewal process as early as possible to avoid any additional penalties or having your license revoked.

Improving your credit score over time can help you reduce your bond rate so you can pay less next time you are renewing your auto dealer bond.

Apply for Your Auto Dealer Bond Today!

To apply for an auto dealer bond in Alabama, complete our online application. Most applicants get approved in minutes and you can print an original copy of your bond any time.

Should you have any more questions, feel free to call us at (866)-450-3412.


About us:
Bryant Surety Bonds, Inc. is a surety bond agency based in Pennsylvania. Licensed in all 50 states and with access to over 20 T-listed, A-Rated bonding companies, we have the contacts, expertise, and top service to provide you with a hassle-free experience, all while offering competitive rates for your surety bond.