Iowa Motor Vehicle Dealer Surety Bond
If you are a Motor Vehicle Dealer in Iowa, you need to apply for a license through the Iowa Department of Transportation, Office of Vehicle Services. The definition of a retail motor vehicle dealer includes: new or used motor vehicle dealer (also known as a car dealer or auto dealer), travel trailer dealer, truck dealer, motor home dealer, motorcycle dealer, low speed vehicle dealer, and motorized bicycle dealer.
Surety Bond and License Requirements:
- Used dealers must first complete the eight-hour pre-licensing course (prior to application).
- Applicants must be able to pass a criminal background check.
- Complete the dealer or travel trailer application and pay the applicable fee.
- Applicants must establish a place of business and obtain zoning approval. The business must have a office with a telephone with a directory listing of the business, maintain at least 32 hours per week of business operation (motorcycle dealers do not have to meet this requirement), and have a suitable display space and a repair facility. An on-site inspection of the location must be conducted by the County Treasurer's office for your area.
- Motor vehicle applicants must obtain a $75,000 surety bond (travel trailer dealers require a $25,000 surety bond).
- New/Franchise dealers must provide a copy of their manufacturer or distributor franchise agreement.
- Provide a copy of your liability insurance coverage. The minimum liability coverage is $100,000 bodily injury or death of one person, $300,000 bodily injury or death of two or more persons per accident, and $50,000 property damage in one accident.
How Much Will This Bond Cost?
The premium that you pay for an Iowa Motor Vehicle Dealer Surety Bond is dependent on credit, the bond amount required and experience in the motor vehicle industry.
More Surety Bond Questions?
Check out our FAQ page. Should you need or choose to buy a surety bond, SuretyGroup.com has been underwriting surety bonds throughout the U.S. for more than 35 years. When you work with us, you enjoy the unique benefit of dealing with a team of highly experienced surety agents with in-house underwriting authority. This allows you to receive competitive, low rates, quick approvals, and immediate bond delivery. In most cases, your bond will be delivered within 24 hours after you apply for it.
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