Motor Vehicle Dealers, also known as Auto Dealers or Car Dealers, are required in most states to have a license and a surety bond to operate a dealership. Each state has different licensing and surety 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 surety 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
Your premium will depend on several factors such as the bond amount, the bond duration and your financial credentials.
Hours: 8:00-5:00 CST, Monday through Friday
For more information, read our Blog on Motor Vehicle Dealer Bonds.
|STATE||BOND AMOUNT||APPLY 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|
Depending on your individual state, there are many types of motor vehicle dealer bonds. We can assist with all:
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?
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 firstname.lastname@example.org 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 email@example.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 surety 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.