Oregon Auto Dealer Bond Overview

For Oregon car dealers, getting an Oregon auto dealer bond is a necessary step when applying for your Oregon auto dealer license. The purpose of the auto dealer bond is to act as an additional guarantee that your dealership will follow all rules and regulations that govern auto sales in the state.

All surety bonds work like a contract between three parties. In the case of the Oregon motor vehicle dealer bond, the principal is your dealership, the obligee is the Oregon Department of Motor Vehicles, and the surety is the bond underwriter. When you obtain a bond, this is a strong sign for your customers that you are safe to do business with.

  • Surety Bond Name: Oregon Auto Dealer Bond
  • Surety Bond Amount:
    • $50,000 for motor vehicle dealers or rebuilders
    • $10,000 for dealers of motorcycles, mopeds, ATVs and snowmobiles
  • Obligee: Oregon Department of Motor Vehicles
  • Required Expiration Date of Dealer Bond: N/A
  • Surety Bond Type: Continuous

Your Oregon auto dealer bond protects the state and the general public, unlike insurance, which safeguards your interests. If you fail to abide by the conditions set forth in the bond, an affected party can file a claim against you. If it’s proven that you have transgressed the rules, you might be liable to pay a compensation up to the penal sum of the bond. At first, your surety will cover the costs up front, but then you need to fully reimburse them. Thus, avoiding claims is the wisest course of action, since they can pose a serious financial risk for your dealership - and hurt your business reputation.

Oregon Auto Dealer Bond Cost

Motor vehicle dealers, or rebuilders, in Oregon need to post a $50,000 auto dealer bond. The bond amount might seem high at first, but in reality, you need to pay only a percentage of it to get bonded, which is called the premium. Your actual surety bond cost is much lower than the bond amount.

  • You can expect to pay between 1% and 3% of the bond amount if your credit score is above 650.
  • If your credit score is between 600 and 649, the bonding rates range between 2% and 4%.
  • With good credit, you might end up paying as little as $500 to get your Oregon $50,000 auto dealer bond.

You can consult the surety bond costs that you can expect to pay in the different credit score ranges in the table below.

Auto Dealer Bond Cost Based on Credit Score
Surety Bond Name Bond Amount Above 700 Between 650-699 Between 600-649 Below 599
Oregon motor vehicle dealer or rebuilder bond $50,000 $500-$1,000 $750-$1,500 $1,000-$2,000 $1,500-$3,500
Oregon dealer of motorcycles, mopeds, ATVs and snowmobiles bond $10,000 $100-$200 $150-$300 $200-$400 $300-$700

* 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!.

Your actual surety bond cost can be seen only after you apply for your Oregon DMV bond. Then your surety will examine your personal and business financials, and will assess the risk of getting you bonded. The stronger your finances are, the lower the price of your bond will be.

The most common indicators that sureties consider are:

  • Your personal credit score
  • Business finances
  • Strength of your assets and liquidity
  • Business experience in auto dealership

Besides these factors, choosing the right surety agency also helps lower your Oregon auto dealer bond cost. At Bryant Surety Bonds, we ensure exclusive bonding rates for our clients by fostering partnerships with numerous A-rated, T-listed surety companies. This means we can shop around among different bond underwriters, and offer you the best rates that match your circumstances.

You can see an estimate of your bond cost by using our surety bond cost calculator in the right sidebar. Apply online, or call our surety bond experts at 866.450.3412, for your exact Oregon car dealer bond quote.

Bad Credit Program

If you’re an Oregon car dealer with less-than-perfect credit, Bryant Surety Bonds’ Bad Credit Surety Bond Program is the right match for you. With years of experience in getting auto dealers bonded across the U.S., we know just how tough it can be to get your Oregon auto dealer bond with low credit scores, tax liens, bankruptcies, or civil judgments. We’re here to help.

Getting bonded through our bad credit program means you’re likely to pay a slightly higher bond premium– in the range of 4% to 7% of the bond amount. This is needed in order to compensate for the more-complicated bonding process. However, it’s still the best option for getting bonded and staying legally compliant, while improving your business stats over time.

Oregon Auto Dealer License and Renewal

Whether applying for your first Oregon auto dealer license or for renewal, your first step is completing a license application. If you’d like to become a motor vehicle dealer or rebuilder, you need to fill in the Application for Three-Year Vehicle Dealer Certificate. For dealers of motorcycles, mopeds, ATVs and snowmobiles, the correct form is the Application for Three-Year Business Certificate. The Dealer-Related FAQ page is an excellent source of information if you have any hesitations about the licensing process.

Along with your application, you need to submit a number of other documents that include:

  • City/county location approval
  • Proof of a compliant business location
  • A business sign
  • Liability insurance certification
  • DMV Certificate of Exemption (Form 370C) - completion of compulsory dealer education from an approved dealer education provider
  • Payment of fees: $1,187 for the original certificate with one plate, $350 for each additional location, $54 for each additional plate
  • $50,000 Oregon auto dealer bond for dealers or rebuilders, $10,000 for dealers of motorcycles, mopeds, ATVs and snowmobiles

Once you’ve submitted all documents to the Oregon DMV, the licensing authority will verify and assess your application. If it is approved, your Oregon car dealer license will be issued.

We recommend that you save copies of your original Oregon auto dealer bond form, as well as of other license application documents, so that you can refer to them if needed.

The license expires after three years, so you will need to renew it, together with renewing your Oregon auto dealer bond. Your surety bond cost may change over time depending on your financial situation. It is a good idea to work on improving your credit score and overall finances, to get a lower bond price next time.

Get Your Oregon Auto Dealer Bond Today

You can start your bonding process today with just a single click! Apply online or call us at 866.450.3412 to get your free, no-obligations Oregon auto dealer bond quote. For any questions about bonding or your bond application, we will be happy to assist you.

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.