If you plan to operate as a vehicle dealer in Washington, securing an auto dealer bond is a mandatory step in the licensing process. Required by the Department of Licensing (DOL), the surety bond protects consumers and the state by holding dealers accountable for fraud, misrepresentation, unpaid taxes, and other violations. Continuous bond coverage demonstrates compliance with state laws and commitment to fair business practices.
The bond requirement is set out in Revised Code of Washington 46.70: a vehicle dealer license plus a bond is required for anyone selling more than four vehicles per year that are registered to the seller, and for any seller of vehicles not registered to themselves.
Washington Auto Dealer Bond at a Glance
- Purpose: To protect Washington consumers and the state from financial harm caused by dealer misconduct, including fraud, failure to pay fees or taxes, or other dishonest practices.
- Who Needs It: All Washington motor vehicle dealers, including motor vehicle, manufactured home/travel trailer, and miscellaneous vehicle dealers.
- Regulating Authority: Washington State Department of Licensing.
- Bond Amount: $1,000 - $40,000, depending on the license; $30,000 for all standard licensed motor vehicle dealers (new and used).
- Premium Rate: Premiums usually start around 1% of the bond amount, with final costs based on credit score, financial history, and business experience.
The Washington auto dealer bond applies to several license types, including:
- Motor Vehicle Dealers – Sale of new and used cars, trucks, and motorhomes at retail or wholesale.
- Manufactured Home / Travel Trailer Dealers – Manufactured homes, park trailers, travel trailers, and tent trailers.
- Miscellaneous Vehicle Dealers – Motorcycles, off-road vehicles, utility trailers, boat trailers, horse trailers, and similar vehicles.
- Motor Vehicle Wreckers – Businesses involved in dismantling and salvaging vehicles must also maintain a bond to comply with state regulations.
Bryant Surety Bonds is licensed (license # 1022429) to issue Washington auto dealer bonds and works with top sureties to secure the lowest available rates. Start your online application today to get a free, no-obligation quote.
How Much Does a Washington Auto Dealer Bond Cost?
The required bond amounts are consistent statewide and are as follows:
| Bond Type | Bond Amount | Bond Cost |
|---|---|---|
| Wrecker | $1,000 | Starting at $100 |
| Vessel / Tow Truck / Misc. Dealer | $5,000 | Starting at $100 |
| Travel Trailer Manufacturer | $20,000 | Starting at $200 |
| Vehicle Dealer (Cars, Trucks, Motor Homes) | $30,000 | Starting at $300 |
| Mobile Home Manufacturer | $40,000 | Starting at $400 |
To determine the exact percentage of the bond amount you need to pay, the surety company evaluates the risk you represent as a dealer. The factors it considers include:
- Personal credit score
- Business assets and liabilities
- Overall financial standing
- Experience in an auto dealership
These factors provide the surety company with a clear picture of your business and financial profile. If the profile is strong, with stable financials and a solid credit score, the bond premium that you will pay typically falls between 1% and 3% of the total bond value.
In cases with lower credit or higher financial risk, the percentage may rise, sometimes up to 10%. Bryant Surety Bonds offers a Bad Credit Surety Bond Program designed specifically for applicants with less-than-perfect credit. Through our partnerships with top-rated sureties, we can often secure affordable bond options even if your credit score is challenged.
Use our Surety Bond Cost Calculator below to get a quick estimate of the premium you will pay. Simply choose your bond type, state, bond amount, and credit score to see your likely premium.
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Get a free exact quote Get another estimateHow to Get a Washington Auto Dealer Bond
Securing your bond is fast, straightforward, and handled entirely online. In many cases, it takes only three simple steps to finish the process:
- Submit a quick online form. Share essential details like your dealership name, contact information, and the bond amount you need.
- Review your quote.
- Secure your bond. After you approve and pay, your official bond certificate is issued right away so you can file it with your license application or renewal.
Most applicants complete the process in just one day, avoiding costly delays. Whether you’re starting a new dealership or renewing your license, we make sure your Washington bond requirements are covered quickly and correctly.
Bryant Surety Bonds is licensed to issue surety bonds in Washington under license number 1022429.
How Do You Get a Washington Motor Vehicle License?
To apply for a license, you must include the following documents in your application:
- A motor vehicle surety bond
- Application fee: $975
- Dealer Education Certificate (required for used dealers – 8-hour course for initial license)
- Personal/Criminal History Statement for all owners, officers, partners, and LLC members
- Fingerprint background check for each owner, officer, or partner
- Financial/Source of Funds Statement
- Proof of business location (lease, deed, or similar)
- Dealer/Manufacturer Addendum (business type, endorsements, certification of compliance)
- Dealer plate fees of $43 per plate per year (each dealer plate needed for the business)
- An additional $100 subagency license fee and a separate $30,000 bond for each additional dealership location, plus bond coverage for any temporary subagencies
Your business location must meet the standards of the Department of Licensing. It must be a permanent, enclosed commercial building that complies with local zoning and building codes. A permanent outdoor sign showing the business name and type of operation is required, as well as a listed phone number, which can be a landline or mobile. The dealership must be open at least five days a week and must include space for storing books, records, and files.
Applications may be filed online through the Business Licensing Wizard or by mail to:
Business Licensing Service
Department of Revenue
PO Box 9034
Olympia, WA 98507-9034
For more information, visit our dedicated Washington Motor Vehicle Dealer License page.
Washington Auto Dealer Bond Renewal
You must renew your dealer license annually. The renewal fee is $325, and renewal can be submitted up to 60 days before expiration to avoid late fees. You must also maintain and renew your Washington auto dealer bond each year.
Most non-exempt vehicle dealers (including independent used dealers) must submit a valid Dealer Education Certificate as part of the renewal process, which requires completing at least 5 hours of continuing education during the licensing period.
Important Updates for Washington Dealers
-
RV Manufacturer–Dealer Agreements (Effective since June 6, 2024)
Recreational vehicle (RV) manufacturers and suppliers in Washington must have a signed written agreement in place before selling new RVs to licensed dealers. The agreement must:
- Specify which party is responsible for warranty coverage on the RV, including its accessories, components, and parts.
- Outline the process for resolving disputes, such as mediation steps and remedies for violations.
- Be signed by both the manufacturer/supplier and the dealer before any sales occur.
-
Catalytic Converters Marking (Effective since April 1, 2025)
Dealers must offer buyers the option to have the last eight digits of the VIN permanently marked on the catalytic converter.
- If accepted, the dealer applies the marking (a fee may be charged).
- If declined, the buyer must sign a disclosure.
- Marking helps deter theft and supports law enforcement.
-
$500 Catalytic Converter Inspection Fee for Vehicle Wreckers (Effective April 1, 2025)
For dealers who also hold a vehicle wrecker license, ESHB 2153 added a new $500 catalytic converter inspection fee on each original or renewal wrecker license application, deposited in the state patrol highway account to support Washington State Patrol enforcement activities (RCW 46.80.220).
FAQs
How long does it take to get a Washington auto dealer bond?
Many applicants can get bonded the same day they apply. With Bryant Surety Bonds’ online process, most approvals are issued within 24 hours once payment is received.
What happens if a claim is filed against my bond?
If a valid claim is made, the surety will pay out up to the bond amount to cover damages. However, you are legally required to repay the surety in full for any claims paid.
Can my bond be canceled?
Yes. If you fail to maintain an active bond, your license will be revoked by the Department of Licensing. Surety companies can also cancel a bond with 30 days’ written notice to both you and the DOL.
What happens if the bond amount is exhausted?
Multiple claims may be made against the bond, but the surety is only liable up to the total bond amount. So if the bond is fully exhausted, the dealer's license is automatically canceled.
Is a different bond needed for each dealership site in Washington?
Yes. A separate bond is required for each licensed location, and dealers must also ensure their temporary sales sites are covered under bond terms.
Does obtaining an auto dealer bond quote affect my credit score?
No. Sureties evaluate your application with a soft credit inquiry, which doesn’t affect your credit score and doesn’t appear on the credit reports lenders pull when you finance inventory, set up a floor plan line, or apply for other business credit.
Can I get a Washington auto dealer bond if I have bad credit or past financial issues?
Yes, you still can. Bad credit, prior bankruptcies, tax liens, or other financial setbacks do not automatically disqualify you. Through Bryant Surety Bonds’ Bad Credit Surety Bond Program, higher-risk applicants are typically quoted at 5%–10% of the bond amount rather than the standard 1%–3%, and most still secure the coverage they need to obtain or renew their Washington vehicle dealer license.
Are installment options available for paying my Washington auto dealer bond premium?
Unfortunately, no. Washington auto dealer bond premiums are paid in full up front for the full annual term, which is a standard practice across the surety industry. For a well-qualified applicant, the $30,000 motor vehicle dealer bond typically starts around $300 per year.
