DC Auto Dealer Bond Overview

Applicants for any type of dealer license in the District of Columbia are required to obtain an auto dealer bond in order to get their business license from the DCRA. This bond must be in an amount of $25,000. Applicants for an auto repair license must also obtain a bond in an amount of either $5,000 or $2,000, depending on the number of employees they have.

Why do dealers need to get bonded?

Dealers need to get a surety bond as a guarantee that they will comply with the laws and regulations in DC that govern their conduct. This includes conducting business honestly and transparently, without fraud or misrepresentation.

If a dealer violates the conditions of their bond agreement, a claim can be filed against their bond to secure compensation for damages and losses that occur as a result of the violation. In this case, the surety will investigate the claim and extend compensation to claimants in an amount necessary to satisfy the claim. The amount of compensation can be as much as the full penal sum of the bond.

To learn more about the process of getting bonded and the function of surety bonds, see our What is a surety bond guide!

Start your surety bond application today! Why us?
  • The lowest possible rates
  • A 100% money-back guarantee
  • Access to specialty programs, not available to small agencies

For more about the cost of the bond required of DC auto dealers, how bond claims occur, and how to apply for a bond, see the following sections!

For any additional questions about this bond, call our surety professionals (866)-450-3412 anytime!

How Much Does it Cost to Get an Auto Dealer Bond in DC?

The cost of your surety bond, or bond premium, is a fraction of the total amount of your $25,000 bond. It is determined by your surety on the basis of several financial criteria.

Factors that determine your bond rate

An applicant's personal credit score is the primary determining factor of the cost of their bond.

If you have a high to moderate credit score, you can expect to be offered a rate between .75% and 5% of the total amount of your bond.

If your credit score is low, then you will likely be offered a rate anywhere between 5% and 10% of your required bond amount.

Higher rates are due to the increased risk sureties perceive in bonding applicants with low scores. You can significantly improve your bond rate by raising your credit score. In this way, you will need to pay a lower rate on your bond when you renew.

Along with your credit score, your surety may also want to review one or several of the following:

  • Personal and business financial statements
  • Fixed and liquid assets
  • Industry experience

Want to know how much your bond may cost? See the bond cost table below for various premium ranges.

DC Auto Dealer Bond Cost Based on Credit Score

License type

Bond Amount

Credit Score
Above 700 650-699 600-649 Below 599
DC motor vehicle dealer $25,000 $188-$375 $250-$750 $625-$1,250 $1,250-$1,875
Auto repair (5+ employees) $5,000 $100 $100-$150 $125-$250 $250-$375
Auto repair (less than 5 employees) $2,000 $100 $100 $100 $100-$150

How Do Bond Claims Occur?

The purpose of thеse bonds is to guarantee your compliance with the DC Code and the DC Municipal Regulations (DCMR). These specify the conditions under which a complaint may be made against you to the DCRA, and you may face a penalty. If you fail to take care of the penalty in due time, a claim can be made against your bond.

This will force the surety that backs your bond to investigate the issue and determine the validity of the claim. If the claim is valid, the surety will compensate claimants for up to the full amount of the bond.

If the surety extends compensation to a claimant, you are required to repay the surety in full. Sureties only provide guarantee to claimants but do not assume the final liability or costs of a claim.

For this reason, it is best that you do not give rise to a claim. Make sure to familiarize yourself with the provisions of the Code and DCMR to remain compliant with them!

Apply For Your Auto Dealer Bond!

To get started, simply click on the banner below and complete the bond form. We'll then provide you with a free and precise quote on your bond, along with further details.

Not ready to apply? Then simply get a free no-obligations quote, so you can see our low prices!

If you have any other surety-related questions or require assistance with your application, call us at (866)-450-3412!

Further Reading


About the author:
Todd Bryant
Todd Bryant is a graduate of Germantown Academy and the University of Pittsburgh College of Business Administration Honors College. He has been President of Bryant Surety Bonds, Inc., an A+ rated Business with the Better Business Bureau, since 2007. Licensed as a producer with the Department of Insurance, he has been published in the National Association of Surety Bond Producers newsletter and on numerous authoritative publications such as The Washington Post, Entrepreneur.com, Azcentral.com and many more.