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Does an Alabama Used Motor Vehicle Dealer Need a Surety Bond?

A used car on a car lot

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.

The following is required for licensure:

1. Completion of the online application (ETAPS) and payment of 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).
5. A $10,000 surety bond is required for licensure. Bond form MV 539-BU will need to be uploaded as an attachment to the license application.
6. The license and surety bond renews October 1 of each year.

How Much Will This Bond Cost?

The premium that you pay for an Alabama Used Motor Vehicle Dealer Surety Bond is dependent on credit.

Did You Know?

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

Related Links:

Licensing Information for Alabama Dealer Licenses
Alabama Dealer License FAQs

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