This bond is required for anyone who wants to open a new car dealership in Alabama. It's a $50,000 financial guarantee that protects customers if the dealer breaks state laws or fails to follow regulations, such as selling vehicles fraudulently or not transferring titles properly. If a dealer violates these rules and …
Overview
What it is.
This bond is required for anyone who wants to open a new car dealership in Alabama. It's a $50,000 financial guarantee that protects customers if the dealer breaks state laws or fails to follow regulations, such as selling vehicles fraudulently or not transferring titles properly. If a dealer violates these rules and …
Who usually needs it
Motor vehicle dealers in Alabama, including new vehicle dealers, used vehicle dealers, motor vehicle rebuilders, motor vehicle wholesalers, motorcycle dealers, and trailer dealers (excluding trailers not subject to titling), must obtain this $50,000 bond as a requirement for obtaining and maintaining a Master Dealer License from the Alabama Department of Re…
Pricing & timing
What to expect.
Generic pricing
License bonds are required by state and local governments to ensure compliance with industry regulations. Typical Pricing:. • Small bonds (under $25,000): Typically $100–$250 per year (flat fee). • Larger license bonds: Commonly around 1–5% of the bond amount annually. • Credit impact: Good credit: starting around 1–2% · Average credit: typically 2–4% · Credit challenges: often 4–5% or higher. Same-day approval is typical for many common license bonds. Some license bonds may price higher de…
Typical timeframe
Issuance timeframe varies by bond type and underwriting
Application
What to do next.
Tell us the bond name, state, and amount on your form.
Share business and applicant info so the team can quote it.
Sign and pay; we issue the bond and send you the documents.
Keep your effective date and renewal date on file with us.
Start the application.
You are on the exact bond page. The next step is to start the quick application.
StateALBond amount$50,000ObligeeState of AlabamaBond classLicense BondCategoryMotor VehicleBondAlabama Motor Vehicle Dealer Bond (New)JurisdictionStatePlain descriptionThis bond is required for anyone who wants to open a new car dealership in Alabama. It's a $50,000 financial guarantee that protects customers if the dealer breaks state laws or fails to follow regulations, such as sell…Who needs this bondMotor vehicle dealers in Alabama, including new vehicle dealers, used vehicle dealers, motor vehicle rebuilders, motor vehicle wholesalers, motorcycle dealers, and trailer dealers (excluding trailers not subject to titl…
