Georgia Auto Dealer Bond Requirements
In Georgia, used motor vehicle dealers and used motor vehicle parts dealers must secure a surety bond to obtain their dealer license.
Used motor vehicle dealers are required by the Georgia State Board of Registration of Used Motor Vehicle Dealers to post a $35,000 surety bond as part of their licensing requirements. The bond is valid for 2 years and expires on September 30th of even-numbered years.
Used motor vehicle parts dealers, dismantlers, rebuilders, and salvage dealers are required by the Georgia State Board of Registration of Used Motor Vehicle Parts Dealers to post a $10,000 surety bond as part of their licensing requirements. The bond is valid for 2 years and expires on December 31st of odd-numbered years.
In essence, a Georgia auto dealer bond is a contract among three parties – the Principal (the auto dealer required to get a bond), the Obligee (the party requiring the bond), and the Surety (the bonding company that backs the bond). The bond guarantees compensation, up to the bond amount, if a claim is filed due to the dealer's legal violations, dishonesty, or unethical practices, ensuring financial compensation to the affected parties.
Key Specifications of the Required Georgia Auto Dealer Bonds
Used Car Dealers
- Surety Bond: Georgia Used Motor Vehicle Dealer Bond
- Bond Amount: $35,000
- Bond Term: Valid for 2 years, requiring renewal before September 31st of even-numbered years
- Price: Starts at $350 for the full 2-year term
- Principal: Used motor vehicle dealers
- Obligee: Georgia State Board of Registration of Used Motor Vehicle Dealers
Used Car Parts Dealers
- Surety Bond: Georgia Used Parts Dealer Bond
- Bond Amount: $10,000
- Bond Term: Valid for 2 years, requiring renewal before December 31st of odd-numbered years
- Price: Starts at $100 for the full 2-year term
- Principal: Used motor vehicle parts dealers, dismantlers, rebuilders, and salvage dealers
- Obligee: Georgia State Board of Registration of Used Motor Vehicle Parts Dealers
Georgia Auto Dealer Bond Cost
Used car dealers with high credit scores can pay as low as $350 for the whole 2-year term. The surety bond cost for used car parts dealers can be as low as $100 for the full 2-year term.
The cost you pay, called a bond premium, is only a percentage of the bond amount. This premium generally ranges between 1% and 10% and is based on several factors:
- Credit Score: This is the most important cost factor. Applicants with higher credit scores are typically perceived as low risk, which leads to lower premiums.
- Financial History: A stable financial background shows that the auto dealer applicant can handle their finances and therefore can reduce the bond cost.
- Experience in the Industry: Established dealers may enjoy better rates.

For example, a used car dealer with excellent credit of 650 or above may pay as low as 1% of the bond amount or $350 for the state-required 2-year term.
Based on the credit score, the bond cost may vary as follows:
Surety Bond Name | Surety Bond Amount | Excellent Credit Score (650 and above) | Average Credit Score (550-649) | Below Average Credit (549 and below) |
Georgia Used Motor Vehicle Dealer Bond | $35,000 | $350-$1,400 | $1,400-$2,625 | $2,625-$3,500 |
Georgia Used Parts Dealer Bond | $10,000 | $100-$400 | $400-$750 | $750-$1,000 |
Get an instant ballpark estimate based on your credit score by using our bond cost calculator below.
Bad Credit Auto Dealer Bonds in Georgia
For applicants with lower credit scores, the cost of a Georgia auto dealer bond is typically higher due to the increased risk perceived by the surety company. Dealers with credit challenges can expect to pay a premium that ranges from 4% to 10% of the bond amount.
Bryant Surety Bonds’ Bad Credit Program helps these applicants secure bonds despite higher costs, enabling them to meet licensing requirements. Additionally, taking steps to improve credit and financial stability over time can help reduce premiums upon renewal.
Georgia Dealer License Application
To legally operate a dealership in Georgia, you must obtain a motor vehicle dealer license and fulfill specific requirements, including securing a Georgia auto dealer bond. Here are the main steps of the application and renewal process.
Step 1: Complete the License Application
Submit a completed dealer license application to the Georgia State Board of Registration of Used Motor Vehicle Dealers, which is under the Georgia Secretary of State. The application will require information about your dealership and may require additional state-specific compliance forms.
Step 2: Meet Bond Requirements
To obtain your Georgia auto dealer license, you must meet the following bond and documentation requirements:
- Bond Requirement:
- $35,000 bond for used motor vehicle dealers.
- $10,000 bond for used parts dealers.
- The bond must include a Power of Attorney.
Step 3: Prepare Documentation
As part of your application, you'll need to gather the following documents:
- Completed, Signed, and Notarized Application: Submit through the GOALS license portal.
- Zoning Certification: Included with your application to confirm compliance with local zoning laws.
- Surety Bond: Proof of the bond amount required for your license type.
- Certificate of Insurance: Proof of liability insurance for your dealership.
- Photographs of Business: Submit pictures of your dealership location.
- Proof of Pre-Licensing Seminar Completion: Mandatory for first-time applicants.
- Background Check: Required for all principals (state and federal).
- Affidavit of Citizenship: To confirm your legal status.
- Secure & Verifiable Documents: Such as a driver's license or passport.
- Preliminary Inspection: Ensure your facility meets all state requirements.
- Court/Arrest Documents (if applicable): Include explanations if there are any prior criminal or disciplinary actions.
- Immigration Documents (if applicable): For non-citizen applicants.
- Non-refundable Application Fee: $170.
Step 4: Submit Fee Payment
Pay all required application and license fees to the Georgia Department of Revenue. Fees vary depending on the dealership type and license.
Georgia Dealer License and Bond Renewal
Both the dealer license and auto dealer bond must be renewed every two years to maintain compliance:
- Renewal Documentation: Re-submit any updated forms or financial documentation.
- Bond Renewal: Renew your surety bond with your provider to keep it active.
- Fee Payment: Pay the renewal fees associated with the license and bond.
Timely submission of renewal applications and documents is critical to avoid penalties or lapses in licensure.
- Licenses Expire: On September 30th of even-numbered years for used car dealers and on December 31st of odd-numbered years for used car parts dealers.
- Renewal Deadline: Renew your license before the above-mentioned deadlines to avoid late fees.
- Late Renewal Period: After September 30th, used auto dealers have a late renewal period that lasts from October 1st to October 30th of even-numbered years. A late renewal fee of $250 applies during this period.
- Reinstatement for Lapsed Licenses: If the license lapses, the reinstatement fee is $420.
Bryant Surety Bonds offers reminders for upcoming renewal deadlines to help clients stay compliant effortlessly. You can learn more about licensing requirements and application steps on Georgia Secretary of State - UMVD Licensing.
Get Your Georgia Auto Dealer Bond Today
Ready to start? Our streamlined online application process makes it easy to get bonded in Georgia. Apply online to receive a free, no-obligation quote, or call 866.450.3412 for personalized assistance. Our experts are here to help you navigate the process, answer questions, and secure the best rate for your bond.
Frequently Asked Questions (FAQ)
Is a license required to repossess vehicles?
No, a used motor vehicle dealer license is not required solely for repossessing vehicles. However, if you plan to buy and sell repossessed vehicles, you will need to obtain this license.
How long does the approval of an auto dealer bond in Georgia take?
Typically, approvals can take up to a few hours depending on the completeness of your application and the underwriter's review time.
Do I need a Georgia auto dealer bond if I only sell a few cars a year?
Yes, any sales with the intent to profit require licensure, regardless of the number of vehicles sold.
Can I open a second location under the same dealership name?
To open a second dealership location under the same name, apply for a Supplemental License under the Used Motor Vehicle Dealer License. Use the same designee (the responsible license holder for the business) as the original license and provide all required documents, except proof of pre-licensing seminar completion. Each location needs a separate surety bond and an updated insurance certificate listing the new location.