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Do Utah Motor Vehicle Dealers Need a Bond as a License Requirement?

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

Motor Vehicle Dealers in Utah are required to have a license and obtain a Bond of Motor Vehicle Dealer, Special Equipment Dealer, Crusher or Body Shop. Dealers that require a license include new/ franchise and/or used motor vehicles (includes auto and car dealers), large trailer dealers, special equipment dealers, recreational vehicle dealers, motorcycle dealers, off-highway (ATV), snowmobile and small trailer dealers (trailer weight between 750 and 1,999 lbs.).

Applicants can obtain an application from the Utah State Tax Commission, Motor Vehicle Enforcement Division (MVED).

Dealers must complete the application, fingerprints, and photo requirements, provide any applicable attachments, and pay the license, fingerprint and dealer plate fees.

License requirements are as follows:

Establish a place of business that is in compliance with local ordinances and zoning requirements, including a fence, a permanent office building, a sales lot, a place to store records, a permanent sign that is at least 24 square feet and affixed with nails or screws to posts on the business site (business name on sign must match the business license name).

Obtain a surety bond from SuretyGroup.com in the following amount:

New or used motor vehicle, special equipment dealer or large trailer dealers a $75,000 bond.

Motorcycle, off-highway (ATV), snowmobile or small trailer dealers a $10,000 bond.

Provide photos of any owner, partner or corporate officers, the business signage, and place of business to submit with the application.

Owners, partners, corporate officers and LLC members are required to submit fingerprints for a criminal background check.

Dealers must attend an eight-hour orientation and thereafter a three-hour orientation training class annually.

Dealers must obtain a sales tax license from the Utah State Business and Tax Registration.

New / Franchise dealers are required to provide a copy of the franchise agreement or a letter from the manufacturer.

How Much Will This Bond Cost?

The premium that you pay for a Utah Motor Vehicle Dealer Bond is dependent on credit, the bond amount required and experience in the vehicle dealer industry.

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

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