Connecticut requires every vehicle dealer to secure an auto dealer bond before licensing. Issued under the Connecticut Department of Motor Vehicles (DMV)’s Dealers & Repairers Unit, the bond protects buyers from financial losses caused by unlawful conduct - such as misrepresenting a vehicle’s history or condition, failing to keep or provide access to required sales/repair records, or selling a car with outstanding liens. The bond requirement is set out in Connecticut General Statutes § 14-52 (dealers and repairers) and § 14-15 (leasing and rental companies).
Connecticut Auto Dealer Bond at a Glance
- Purpose: To protect consumers (and the state) by guaranteeing dealers follow Connecticut law and providing a claims path to reimburse buyers harmed by violations like bad titles, misrepresentation, or unpaid liens/taxes.
- Who needs it: All motor vehicle dealers and motor vehicle repairers; leasing and rental companies that lease or rent vehicles for periods of 30 days or more
- Regulating authority: Connecticut Department of Motor Vehicles, Dealers and Repairers Unit
- Bond amount: $15,000 - $60,000, based on the license type
- Bond premium: Typically starts around 1% of the bond amount; final rate depends on credit, finances, and industry history.
Several license classes fall under the Connecticut auto dealer bond, including:
- Motor vehicle dealers (new & used): Authorized sellers that may also service and sell used vehicles.
- General repairers: Businesses that service/repair vehicle systems and parts.
- Leasing & rental companies: Rent or lease vehicles while retaining ownership.
Note: Effective January 1, 2024, Connecticut eliminated the separate “limited repairer” license category under CGS § 14-52 (Public Act 23-40). New applicants today apply for the standard repairer’s license, which carries a $25,000 bond requirement.
How Much Does a Connecticut Auto Dealer Bond Cost?
Depending on the license type, the bond amounts for Connecticut motor vehicle dealers are as follows:
| Bond Type | Bond Amount | Bond Cost |
|---|---|---|
| Used and new motor vehicle dealers | $60,000 | Starts at $600 |
| Motor vehicle general repairers | $25,000 | Starts at $250 |
| Leasing and rental companies | $15,000 | Starts at $150 |
You won’t pay the full bond amount up front. Instead, you’ll pay a bond premium - a small percentage of the amount required for your license type.
Your premium is set through underwriting and reflects your overall financial profile, including credit score and payment history, business financials (cash flow, leverage, liquidity), public records (judgments/liens), tax filing status, and your experience and compliance record in the trade.
Well-qualified applicants commonly pay around 1%–3% of the bond amount per year. Profiles with good credit, limited time in business, or uneven financials can still qualify, but pricing typically falls in the 3%–5% range.
If the file is weak across key areas—less-than-perfect credit, unstable finances, or past compliance issues the bond premium may price higher, sometimes up to ~10%. If that’s the case, Bryant Surety Bonds provides a Bad Credit Surety Bond Program and maintains partnerships with leading underwriters to make bond approval more accessible.
Whether your profile is strong, average, or credit-challenged, our Surety Bond Cost Calculator can show you an approximate premium based on your personal details.
Surety Bond Cost Calculator
Tell us where to send you your FREE estimate
SEND ME MY ESTIMATE!We'll never share your information with third parties
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 estimateThis estimate is for guidance purposes and may not reflect your final cost. Submit our quick online application to get a precise quote with the lowest rates available.
How to Get a Connecticut Auto Dealer Bond
- Fill out the short form online - bond type, bond amount, and personal information - you are already past the first step.
- Get a free quote - no obligations.
- Make your bond official - approve the terms, complete payment, and your certificate will be delivered immediately so you can move on with licensing.
Bryant Surety Bonds is authorized with license #2640744 to issue Connecticut auto dealer bonds and has built long-standing relationships with reputable sureties.
How to Get a Connecticut Auto Dealer License
To obtain a Connecticut dealer or repairer license, submit Form K-7 with required attachments, including the surety bond (K-158), Privacy Rights form with fingerprint-supported background checks for each person listed on the K-7, local approval (zoning/building/fire) for the proposed location, copies of driver’s licenses for all owners and at least one mechanic listed on the K-7 application, a site drawing, insurance certificate, sales tax permit, and vehicle storage rates (K-89). Include environmental materials: the DEEP Compliance Certification Form (which now replaces earlier DEEP referral/checklist forms) and a waste-oil disposal letter from a licensed carrier. Pay the $140 application fee, then the two-year license fee ($700 new, $560 used, $340 repairer).
For rental/leasing companies, file the surety bond ($15,000), certificate of business status (K-198), CT special financial responsibility insurance certificate, sales tax number, a Certificate of Good Standing if organized out-of-state, and a copy of one valid driver’s license; the license fee is $300.
The application and all supporting documents should be mailed to:
Department of Motor Vehicles
Dealers and Repairers Unit
Room 102, 60 State St
Wethersfield, CT 06161-2011
For more information, please visit our dedicated Connecticut auto dealer license guide.
Connecticut Auto Dealer Bond Renewal
Connecticut licenses renew on a biennial schedule, and you must keep your surety coverage continuous - pay your bond renewal premium on time, and submit proof of renewal/extension to the DMV in time to avoid a $200 administrative charge or license issues. At renewal, you’ll also pay the standard biennial license fee for your category.
A note on bond term vs. premium: per the official K-158 form, the bond “shall cover acts and omissions occurring during the period of the license granted to the Principal” — meaning the bond covers the biennial license period. In practice, sureties typically bill the premium annually, so you’ll renew payment each year even though the bond itself runs continuously alongside your license. Don’t let the premium lapse: if the bond is canceled, the DMV will be notified, and your license can be suspended.
A few additional rules took effect on October 1, 2024: customer record retention increased from two years to three years (CGS § 14-64), all individuals listed on a license application are subject to a background check (CGS § 14-15e), and the DMV no longer issues dealer or repairer licenses electronically (CGS § 14-52a(a)).
Important Update for Connecticut Auto Dealers
Effective October 1, 2025, Senate Bill No. 774 amends CGS § 14-62a and § 14-62 and introduces three key updates impacting vehicle sales in Connecticut:
- First, any dealer conveyance fee or processing fee must be included in the dealer’s advertised price and in the price quoted to a prospective buyer. The fee must be separately stated, identified as negotiable, printed in at least 8-point bold type, and noted as not payable to the State of Connecticut.
- Second, dealers may no longer use pre-printed orders or invoices that have a conveyance or processing fee already added — the fee can’t be added at the time the order is signed.
- Third, every order and invoice for a vehicle that has been used as a demonstrator must clearly identify the vehicle as a “demonstrator,” so buyers know upfront when a car has been used for test drives or dealer purposes.
Violations of these provisions can result in a fine of up to $1,000 per violation, and the Commissioner of Motor Vehicles may suspend or revoke the dealer’s license.
FAQs
What happens if someone sells or repairs vehicles without a license?
Per CGS § 14-52(d), any person, firm, or corporation that buys, sells, offers for sale, brokers, or repairs motor vehicles without the required license is guilty of a Class B misdemeanor, punishable by up to six months in jail, a fine of up to $1,000, or both.
What issues can lead to filing a claim against a dealer or repair shop?
Grounds for filing a claim against a dealer or repair shop include disputes involving title transfers, liens, and odometer readings, issues concerning repair authorizations and work orders, and inaccurate or deceptive statements about a vehicle’s servicing or condition.
Can I transfer my Connecticut dealer or repairer license to a new owner?
No. According to the Connecticut DMV Dealers and Repairers Unit, dealer and repairer licenses are non-transferable. A complete change of ownership requires the new owner to apply for a new license, which means submitting a new K-7 application, a new K-158 surety bond in the new entity’s name, the application fee, and the other supporting documents required for an initial license. Existing licensees can, however, make certain changes to their license by mail (such as adding or removing officers/members, changing the business name or address, or changing entity type), each with its own form and $20 processing fee per change.
Does my Connecticut dealer bond transfer if I change my business name or ownership?
It depends on the change. A simple legal name update or address change for the same licensed entity can usually be handled with a bond rider (an amendment to your existing bond) instead of a brand-new bond. A change of legal entity — for example, from sole proprietor to LLC, or from one corporation to a new corporation — generally requires a new license application and a new bond, since the bond can’t carry over to a different entity. Notify the CT DMV Dealers and Repairers Unit and your surety promptly so they can confirm whether a rider or a new bond is needed.
How long does it take to get a Connecticut auto dealer bond?
Most applicants are quoted within minutes of submitting an online application, and bonds are typically issued within 24 hours of approval and payment. Strong-credit applicants often get instant approval. You’ll receive a digital copy by email right away, and the original signed and notarized K-158 form is sent to you for filing with the CT DMV Dealers and Repairers Unit as part of your K-7 application.
Will applying for a Connecticut auto dealer bond affect my credit score?
No. Underwriting uses a soft credit pull only, which has no impact on your score and isn’t visible to mortgage, auto, or credit-card lenders. The pull is used solely to set your premium, so you can request a quote with zero credit impact.
Can I get a Connecticut auto dealer bond with bad credit?
Yes. Bryant Surety Bonds’ Bad Credit Surety Bond Program works with multiple A-rated sureties that specialize in higher-risk applicants — including dealers with low FICO scores, prior bankruptcies, tax liens, or thin credit files. Rates typically fall in the 5%–10% range, and most cases place without collateral. As your credit improves, your renewal premium usually drops, so the higher first-year rate isn’t permanent.
