Alabama Used Motor Vehicle Dealer Surety Bonds

The State of Alabama Department of Revenue, Motor Vehicle Division is responsible for the licensing of new and Used Motor Vehicle Dealers, motorcycle dealers, trailer dealers (trailers do not require a certificate of title), and motor vehicle wholesalers.

The Code of Alabama 1975, Sections 40-12-390, defines the used motor vehicle dealer license requirements. A "used motor vehicle dealer is any person, business, or corporation that are in the business of selling, buying, advertising, exchanging, or negotiating the sale of five or more motor vehicles for retail during a calendar year, whether or not the motor vehicles are owned by such person, business, or corporation, or in offering or displaying motor vehicles for sale at retail to the public. The term 'selling' or 'sale' shall include lease-purchase transactions."

Surety Bond Requirements:

A $50,000 surety bond is required for licensure. Bond form MV 539-BU will need to be uploaded as an attachment to the license application.The license and surety bond renews October 1 of each year.

Used Motor Vehicle Dealer License Requirements:

1. Complete the online application (ETAPS) and pay the license fee.
2. Submit a copy of all owners, partners, members, officers and directors drivers licenses or non-driver identification cards.
3. Submit a picture of the signage and lot (new and used dealers).
4. Obtain blanket/motor vehicle liability insurance and attach the completed Insurance Certification Form (MVD-1).

How Much Will This Bond Cost?

The premium that you pay for an Alabama Used Motor Vehicle Dealer Surety Bond rates start as low as $375 for good credit.

Did You Know?

An Alabama used motor vehicle dealer must provide proof of a blanket liability insurance policy.

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