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California Vehicle Dealers Need a Surety Bond

A happy customer smiles while testing a car at a California motor vehicle dealer

A California Vehicle Dealer must have a license before operating a vehicle business. Vehicle dealers that must be licensed include: New Dealers, Used Dealers (can also be auto dealers or car dealers) or Wholesale Dealers, Auto Brokers or Motorcycle Dealers and All Terrain Vehicle Dealers (ATV), Motorcycle Lessor-Retailers.

Dealer applicants must complete the application process which includes the following:

Pay the applicable fees- application fee, dealer plate(s), branch location and autobroker fee (if applicable), "Family Support Program" fee, background fingerprint fee.

Franchise Certificate (if new dealership) or Letter of Authorization (new trailer dealers).

Provide a copy of property lease or rental agreement or deed.

Provide a copy of your business license.

Provide copies of photographs of the business -office, sign, location, and display area depending on license type.

Obtain a State Board of Equalization Resale Permit.

Complete the Authorization to Release Financial Information and Property Use and Zoning Verification.

Provide a copy of a drivers license and social security card number

Obtain a Surety Bond as follows:

New and Used Vehicle Dealers, Auto Broker =$50,000 bond

Motorcycle Dealer, Motorcycle Lessor-Retailer, ATV Dealer, Wholesale Dealer (less than 25 vehicles per year) =$10,000 bond

In lieu of a surety bond, a deposit of equal value can be assigned to the State of California.

Must be able to pass a criminal background check.

Used dealers and wholesale dealers must first complete and pass a dealer education course prior to submitting an application. Include the original Certificate of Completion (provided upon successfully passing the examination) with your application.

Premium for a California Vehicle Dealer bond is based on credit, the bond amount needed and experience in the motor vehicle industry.

SuretyGroup.com is here to help you with your bonding needs.

We have been underwriting surety bonds for over 35 years, and we offer bonds for individuals and businesses of every size.

Our team of experienced surety specialists and in-house underwriting authority gives us a unique advantage over other surety companies. We are able to offer competitive, low rates, quick approvals and immediate bond delivery. In most cases we can approve your application today and deliver your bond tomorrow.

Have Questions?

Contact our Surety Bond Specialists at:

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