Rhode Island Motor Vehicle Dealer Surety Bonds
If you are a Motor Vehicle Dealer in Rhode Island, you will need a Motor Vehicle Dealer Surety Bond in the amount of $50,000.
Dealerships that will be located in the cities of Central Falls, Cranston, East Providence, Esmond, Exeter, Foster, Johnston, Pawtucket, Providence, Warwick, West Greenwich, or Woonstock are required to obtain a "Second Hand License" to sell used vehicles.
Surety Bond and License Requirements:
New (Franchise) Auto DealersUsed Auto Dealers / Second HandNew & Used Auto Dealers (or car dealers) Truck DealersTractor-Trailer DealersMotorcycle Dealers
- Dealer applicants must complete the application and attachments, which can be obtained from the Rhode Island Division of Motor Vehicles Dealer Division (DMV). Applicants will also need to pay the license fee.
- License requirements include a criminal background check, provide the requested documents including a financial statement prepared by a certified public accountant, copy of lease agreement,a letter of zoning approval, four pictures of the intended dealership.
- Obtain a $50,000 surety bond. A surety will issue a surety bond upon receipt of payment. The bond will come with a certified power of attorney which is required to submit to the state.
- Franchise dealerships must first comply with the Rhode Island General Law, 31-5.1-4.2 and pass the 30 day protest period before submitting an application.
- A $50,000 Surety Bond is required for the following dealer types:
How Much Will This Bond Cost?
The premium that you pay for a Rhode Island Motor Vehicle Dealer Bond is dependent on credit, length of time in the business and the number of business locations. Contact our Surety Bond Specialists for a free quote that fits your specific situation.
Related Links: Rhode Island Instructions for Application for New Dealership
More Surety Bond Questions?
Check out our FAQ page or What’s a Surety Bond? page. Should you need or choose to buy a surety bond, buy from us. 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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