← Back to Bond types
License Bond

Alabama Motor Vehicle Dealer Bond (Used)

This bond is required for anyone who wants to sell used cars in Alabama as a business. The state requires this $50,000 bond to protect customers from dishonest business practices, like selling stolen vehicles, misrepresenting a car's condition, or failing to transfer titles properly. If a dealer breaks the rules and h…

Overview

What it is.

This bond is required for anyone who wants to sell used cars in Alabama as a business. The state requires this $50,000 bond to protect customers from dishonest business practices, like selling stolen vehicles, misrepresenting a car's condition, or failing to transfer titles properly. If a dealer breaks the rules and h…

Who usually needs it

Used motor vehicle dealers in Alabama are required to obtain this $50,000 bond as a condition of obtaining and maintaining their Master Dealer License. Other entities that need this bond include new vehicle dealers, wholesalers, rebuilders, reconditioners, designated agents, auto dismantlers, parts recyclers, licensed wholesale auctions, manufacturers, boat…

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.

  1. Tell us the bond name, state, and amount on your form.
  2. Share business and applicant info so the team can quote it.
  3. Sign and pay; we issue the bond and send you the documents.
  4. 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.

Details

Bond details.

StateAL
Bond amount$50,000
ObligeeState of Alabama
Bond classLicense Bond
CategoryMotor Vehicle
BondAlabama Motor Vehicle Dealer Bond (Used)
JurisdictionState
Plain descriptionThis bond is required for anyone who wants to sell used cars in Alabama as a business. The state requires this $50,000 bond to protect customers from dishonest business practices, like selling stolen vehicles, misrepres…
Who needs this bondUsed motor vehicle dealers in Alabama are required to obtain this $50,000 bond as a condition of obtaining and maintaining their Master Dealer License. Other entities that need this bond include new vehicle dealers, who…
More bonds
Next step

Ready to move forward?

Pin down whether this is your bond, then start the application. Ava can confirm the right state and license type if you are not sure.