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Which States Require a Motor Vehicle Dealer Surety Bond for Licensure?

A Car Dealer gives car keys to customers

Motor Vehicle Dealers, also known as Auto Dealers or Car Dealers, are required in most states to have a license and a bond to operate a dealership. Each state has different licensing and bond amount requirements.

Motor Vehicle Dealers may be new or franchise dealers, used dealers, wholesale auction dealers, new and used motorcycle dealers, new and used recreational vehicle dealers, boat dealers, trailer dealers (generally over a minimum weight), ATV dealers, snowmobile dealers, and more.

States that require Motor Vehicle Dealers to be licensed generally have an application process which includes a license fee, passing a criminal background check, a minimum of car sales, plus requirements on the lot, building, telephone, zoning and signage.

Below are examples of various state bond amount requirements:

Alabama- New Dealer $25,000 and Used Dealer $10,000

Alaska- Dealer $50,000 and Motorcycle Dealer $25,000

Arizona- New and Used Motor Vehicle Dealer and Auction Dealer $100,000, Wholesale Auction and Dealer $25,000

Arkansas- New Dealer $50,000, Used Dealer, Wholesaler and Auction $25,000

California- Dealer $50,000, Motorcycle or ATV Dealer, Wholesale $10,000

Colorado- Dealer or Wholesaler $50,000, Small Trailer Dealer (weight less than 2000 lbs) $5,000

Connecticut- New and Used Dealer $50,000, Repairers License $5,000, Leasing or Rental Company $10,000

Delaware- Bond not required

District of Columbia- Dealer $25,000

Florida- Motor Vehicle Dealer $25,000, Mobile Home Dealer $25,000 (four or more locations $50,000), and RV Dealers $10,000 (four or more locations $20,000)

Georgia- Used Motor Vehicle Dealer $35,000

Hawaii- New Dealer $200,000 (10+ vehicles sold per year), Used Dealer $100,000 (60+ sold per year), New Dealer $50,000 (Less than 10 per year), Used Dealer $25,000 (Less than 60 per year), Used Motorcycle or Scooter Dealer $10,000 (over 49cc's)

Idaho- Retail Dealer $20,000, Wholesale Dealer $40,000, Motorcycle, ATV, UTV or Snowmobile Dealer $10,000

Illinois- Designated Agent (Dealer) $20,000, Remittance Agent minimum of $10,000

Indiana- Dealer $25,000

Iowa- New and Used Motor Vehicle Dealer $75,000

Kansas- New, Used, Salvage, Wholesale Dealer or Auction $30,000

Kentucky- Dealer $100,000 or less, Auction Dealer bond amount can be more than $100,000

Louisiana- Used Motor Vehicle or Auction Dealer $20,000 (119 or less vehicles sold per year), Used or Auction Dealer $35,000 (more than 120 vehicles sold per year)

Maine- Dealer $5,000 (Up to 50 vehicles sold per year), Dealer $10,000 (51-100 vehicles), Dealer $15,000 (101-150 vehicles), Dealer $20,000 (151-200 vehicles), $25,000 (200 + vehicles)

Maryland- New and Used Motor Vehicle, Wholesale, Motorcycle, Emergency Vehicle, Trailer Dealer and Manufacturer or Distributor bond amounts vary and are based on the number of vehicles sold

Massachusetts- Dealer $25,000

Michigan- Class A, B, D Dealer $10,000

Minnesota- New, Used, Lessor, Wholesaler, Broker Auctioneer, Dealer and Salvage Pool or Limited Use $50,000, DSB $5,000

Mississippi- Designated Agent Dealer $15,000

Missouri- Dealer $25,000

Montana- New and Used Motor Vehicle Dealer $50,000, Motorcycle Dealer $15,000, Snowmobile, ATV, Boat Dealer $5,000

Nebraska- New and Used Motor Vehicle, Trailer, Wholesale, or Motorcycle Dealer $50,000

Nevada- Dealer, Distributor, Lessor, Manufacturer, Rebuilder $10,000 Utility or Boat Trailer (under 3500 lbs), Motorcycle, Horse Trailers (without living quarters) or Utility Trailer $50,000, All Other Vehicle Types $100,000

New Hampshire- Retail Vehicle, Auto Recycling, Auto Wholesale, Motorcycle, Repair, Utility Dealer $25,000

New Jersey- New and Used Car Dealerships $10,000

New Mexico- Vehicle Dealer $50,000, Motorcycle Dealer $12,500

New York- Used Motor Vehicle Dealer $10,000 (Up to 200 vehicles sold per year), Used Motor Vehicle Dealer $25,000 (over 200 vehicles), Franchise Dealer $50,000

North Carolina- Motor Vehicle Dealer or Wholesaler $50,000, Additional Locations $25,000

North Dakota- New and Used Motor Vehicle Dealer $25,000, Trailer or Motor Powered Recreational Vehicle Dealer $10,000

Ohio- Bond not required

Oklahoma- Used Motor Vehicle Dealer, Wholesale, Vehicle Crusher $25,000, Auction Dealer $50,000, Rebuilder $15,000, Salesperson $1,000

Oregon- New and Used Motor Vehicle Dealer $40,000, Motorcycle, Moped, Snowmobile, ATV Dealer $2,000

Pennsylvania- Motor Vehicle Dealer $20,000

Rhode Island- New, Used, Truck Motor Vehicle Dealer,Tractor-Trailer or Motorcycle Dealer $50,000

South Carolina- Retail or Wholesale Dealer $30,000, Wholesale Auction, Travel Trailer, Motorcycle or Wholesale Motorcycle Dealer $15,000

South Dakota- New and Used Motor Vehicle Dealer $25,000, Boat Dealer $20,000, Trailer Dealer (weight over 3000 lbs) or Emergency Vehicle Dealer $10,000, Snowmobile or Motorcycle Dealer $5,000

Tennessee- Motor Vehicle Dealer and Franchise Dealer $50,000

Texas- Motor Vehicle Dealer, Motorcycle, Wholesale, Auction Dealer $25,000

Utah- New and Used Motor Vehicle Dealer $75,000, Motorcycle or Small Trailer Dealer $10,000

Vermont- Motor Vehicle Dealer $35,000 for the first year, second year is dependent on the number of vehicles sold $20,000 (less than 25 vehicles), $25,000 (25-100), $30,000 (101-250), $35,000 (more than 251)

Virginia- Motor Vehicle Dealer $50,000, After three years -Pay into the Motor Vehicle Recovery Fund or obtain a $100,000 bond

Washington- Motor Vehicle Dealer $30,000

West Virginia- New and Used Motor Vehicle Dealer $25,000

Wisconsin- Retail Motor Vehicle Dealer $50,000, Recreational Vehicle, Auction, Salvage Dealer $25,000, Motorcycle or Moped Dealer $5,000

Wyoming- Motor Vehicle Dealer $25,000

What Will This Bond Cost?

Your premium will depend on several factors such as the bond amount, the bond duration and your financial credentials.

Read Our Blog

What’s the Deal with Auto Dealer Bonds?

Contact SuretyGroup.com

Phone: 1‑844‑432‑6637
Emailinfo@suretygroup.com
Fax:     404-351-3237
Hours: 8:00-5:00 CST, Monday through Friday


For more information, read our Blog on Motor Vehicle Dealer Bonds.

      
STATEBOND AMOUNTAPPLY NOW
Alabama Bond of Motor Vehicle Dealer and Designated Agent $25,000 Apply Now
Alaska Motor Vehicle Dealer’s/Buyer’s Agent Surety Bond $50,000 Apply Now
Arizona Vehicle Dealer Bond $100,000 Apply Now
Arkansas Used Motor Vehicle Dealer, Wholesaler, or Auto Auction Surety Bond $50,000 Apply Now
California Dealer Surety Bond $50,000  Apply Now
Colorado Bond of Motor Vehicle Dealer, Powersports Vehicle Dealer, Used Motor Vehicle Dealer, Used Powersports Vehicle Dealer, Wholesaler, or Wholesale Motor Vehicle Auction-Dealer $50,000 Apply Now
Connecticut Surety Bond Motor Vehicle $50,000 Apply Now
District Of Columbia Motor Vehicle Dealer Bond $25,000 Apply Now
Florida Surety Bond Motor Vehicle Dealer $25,000 Apply Now
Georgia Used Motor Vehicle Dealer Bond $35,000 Apply Now
Hawaii Motor Vehicle Dealer License Bond $200,000  Apply Now
Idaho Vehicle or Vessel Dealer Bond $20,000  Apply Now
Illinois Designated Agent Bond $20,000 Apply Now
Indiana Vehicle Merchandising Certificate/Bond $25,000 Apply Now
Iowa Motor Vehicle Dealer Bond $75,000 Apply Now
Kansas Vehicle Dealer Bond $30,000 Apply Now
Kentucky Motor Vehicle Dealer’s License Bond $100,000 Apply Now
Louisiana Used Motor Vehicle Bond $20,000  Apply Now
Maine Surety Bond For Motor Vehicle Dealer $5,000  Apply Now
Maryland Surety Bond of Vehicle or Trailer Dealer Varies   Apply Now
Massachusetts Motor Vehicle Dealer Bond $25,000 Apply Now
Michigan Uniform Vehicle Dealer Surety Bond $10,000 Apply Now
Minnesota Motor Vehicle Dealer License Surety Bond $50,000 Apply Now
Mississippi Bond of Designated Agent $15,000  Apply Now
Missouri Dealer, Auction, or Manufacturer License Bond $25,000 Apply Now
Montana Bond of Motor Vehicle Dealer, Special Equipment Dealer, Crusher or Body Shop $50,000   Apply Now
Nebraska Bond of Motor Vehicle, Trailer, Wholesale, or Motorcycle Dealer $50,000 Apply Now
Nevada Vehicle Industry Business License Bond $100,000 Apply Now
New Hampshire Dealer’s Bond $25,000 Apply Now
New Jersey Dealer License Surety Bond $10,000 Apply Now
New Mexico Vehicle Dealer or Auto Recycler Bond $50,000  Apply Now
New York Dealer Bond $10,000 Apply Now
North Carolina Motor Vehicle Dealer Surety Bond $50,000  Apply Now
North Dakota Motor Vehicle Dealer Bond $25,000 Apply Now
Oklahoma Used Motor Vehicle Dealer’s Surety Bond $25,000 Apply Now
Oregon Vehicle Dealer Surety Bond $40,000  Apply Now
Pennsylvania Manufacturer/Dealer/Full Agent/Card Agent/Messenger Services/Salvor Bond $20,000  Apply Now
Rhode Island New Dealership Surety Bond $50,000 Apply Now
South Carolina Motor Vehicle Dealer and Wholesaler Surety Bond $30,000 Apply Now
South Dakota Vehicle Dealer Surety Bond $25,000 Apply Now
Tennessee Motor Vehicle Dealer Bond $50,000 Apply Now
Texas Motor Vehicle Dealer’s Surety Bond $25,000 Apply Now
Utah Motor Vehicle Dealer Bond $75,000 Apply Now
Vermont Motor Vehicle Dealer Continual Bond $35,000  Apply Now
Virginia Motor Vehicle Dealer Bond $50,000 Apply Now
Washington Vehicle/Vessel Dealer, Vehicle Manufacturer, Registered Tow Truck Operator, or Wrecker Business Bond $30,000 Apply Now
West Virginia Motor Vehicle Dealer Surety Bond $25,000 Apply Now
Wisconsin Dealer Bond $50,000 Apply Now
Wyoming Vehicle Dealer Bond $25,000 Apply Now

We write all types of MVD Bonds

Depending on your individual state, there are many types of motor vehicle dealer bonds. We can assist with all:

  • Car Dealer Bond
  • Motorcycle Dealer Bond
  • Yacht Dealer Bond & Boat Dealer Bond
  • Yacht Salesman Bond 
  • Franchise Dealer Bond & Franchise Truck Dealer Bond
  • Independent Auto Dealer Bond
  • Automotive Dealer Bond
  • Auto Sales Bond
  • Salesman Bond
  • Car Service Facility Bond
  • Mobile Home Dealer Bond
  • Recreational Vehicle Dealer Bond
  • Wholesale Auto Dealer Bond
  • Vehicle Auction Dealer Bond
  • Salvage Facility Bond

 

We are proud to support the Florida, Georgia, Louisiana and National Independent Automobile Dealers Associations.

 

Frequently Asked Questions

Q. Why do I need a motor vehicle or car dealer bond?

A. Individuals looking to get their motor vehicle dealer license typically have to provide a surety bond to guarantee their dealership will comply with industry regulations written to protect your customers. Should you break a state regulation, your client can make a claim against your motor vehicle dealer bond.  

Q. How do I get a motor vehicle or auto dealer bond?

A.

Step 1: Understand your state’s requirements

Most states require you to get a motor vehicle dealer bond to operate a dealership. Some states may even require you to get multiple motor vehicle dealer bonds depending on the type of vehicles you want to sell, and to whom you are selling.  But if you are just beginning your research or are not sure if you even need a surety bond, click your state in the list above for more information on your state’s requirements. If you do not see any requirements listed for your state, it is best to contact the state DMV directly to find out if you need a surety bond for your dealership, as bond requirements do change.

If you have any questions, we're here to help. Please feel free to email us at info@suretygroup.com or call 1‑844‑432‑6637 to speak with a surety bond expert today.

 

Step 2: Apply

Now that you know which bonds you need, your next step is to fill out and submit your application. We offer several convenient options to apply for your bond:

A) Apply Online 

B) Download, complete and either fax your app back to 404‑351‑3237 or email your app back to info@suretygroup.com.

C) We can complete the application over the phone with you, if you’d prefer.  Call us toll free at 1‑844‑432‑6637.

 

Step 3: Submit your bond to the State

Once you have received your surety bond, you will need to:

• Sign your bond

• Make a copy for your records

• Send the original bond to the State (along with any other important paperwork provided by the state or bond agency)

The state should contact you after they receive your bond and ship your license to you; this process can take roughly one to three weeks. 

 

Q. How much does a motor vehicle dealer bond cost?

A.  Qualified applicants could pay as low as 2% of the bond amount, with even lower premiums in several states.  Your exact premium will depend on a number of factors such as the bond amount, the bond's duration and your financial credentials. Our surety bond experts make sure you get the best rate possible. Quoting and issuing bonds directly from our office also makes SuretyGroup.com the fastest way for a dealer to get bonded. And, we offer a FREE, no obligation, price quote on Motor Vehicle Dealer bonds – check out our Quick Quote tool now.

 

Q. How long will it take to get my motor vehicle dealer bond?

A. Apply Today, Approved Today.  SuretyGroup.com has been underwriting commercial bonds for over 35 years and we’re licensed to issue bonds nationwide. Once you have met your state’s requirements, in many cases we can provide same-day approval of your bond application, while some bonds might require a slightly longer application process. We also offer overnight shipping so you can receive your bond ASAP.

 

Have Questions? Please call 1‑844‑432‑6637 and our surety bond professionals will gladly assist you.



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