How Much Does an Alabama Auto Dealer Bond Cost?

All motor vehicle dealers in Alabama are required to obtain a $50,000 bond.

The cost of the bond, also called the bond premium, is equal to a percentage of that amount. The premium is determined by the surety based on several financial factors with the applicant’s personal credit score being the most important one.

Alabama Auto Dealer Bond Costs
License type Bond Amount Starting Price
Alabama motor vehicle dealers $50,000 $500

* The table provides a bond cost ballpark estimate based on the applicant's credit score. Actual bond prices can differ due to a number of factors. For an exact quote, please complete our online application. It's fast and 100% free!.

In addition to your credit score, a surety may also review your financial statements, information about your assets, and your industry experience. Yet, the credit score is the most important factor, and the higher your score, the lower your bond premium will be.

To learn more, see our surety bond cost guide for a detailed explanation of how the different factors influence your bond premium.

Want to get an estimate of how much your auto dealer bond might cost? Try our surety bond cost calculator below.

+ -
+ =

Surety Bond Cost Calculator

* This form is for a rough estimate only.

Tell us where to send you your FREE estimate


We'll never share your information with third parties

Back to Surety Bond Cost Calculator

Thank you for your request!

The ballpark estimate on your premium is: $100 - $167

We've sent a copy of your estimate on your email as well.

Want an exact quote? Simply fill out our online application It's fast and 100% free!

Get a free exact quote Get another estimate

Never gotten bonded before? Our What is a surety bond? guide can provide you with all the essential information about why surety bonds are required and how they work.

Can I Get Bonded if I Have Bad Credit?

Yes, you can get an Alabama auto dealer bond, even if your credit score is currently low.

Through our Bad Credit Program, we can enable auto dealer bond applicants who currently have a low score, previous bankruptcies or other financial difficulties to get bonded.

How to Get an Alabama Dealer License?

To get licensed as an auto dealer in Alabama, you need to apply at the Alabama Department of Revenue Motor Vehicle Division.

As part of your application, you will need to complete the following steps:

  • Register your business entity with the Alabama Secretary of State Business Services section
  • Obtain sales tax registration from the Department of Revenue and an Employer Identification Number (EIN) from the IRS
  • Meet local zoning requirements
  • Obtain blanket liability insurance
  • Get an Alabama auto dealer bond
  • Pay a $125 dealer license fee and a $25 dealer license plate fee
  • Complete the online Alabama auto dealer license application form
  • Pass a designated agent registration

Want to know more about the licensing process? See our guide on How To Get Your Car Dealer License In Alabama!

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.