Bond for Motor Vehicle Dealer and/or Towable Recreational Vehicle Dealer
Any person engaged in the business of selling motor vehicles at retail in Iowa, including those selling more than 6 vehicles in a 12-month period. Required when: Application for a motor vehicle dealer license or a towable recreational vehicle dealer license. Exemptions: Government agencies operating in official capaci…
Overview
What it is.
Any person engaged in the business of selling motor vehicles at retail in Iowa, including those selling more than 6 vehicles in a 12-month period. Required when: Application for a motor vehicle dealer license or a towable recreational vehicle dealer license. Exemptions: Government agencies operating in official capaci…
Who usually needs it
Any person engaged in the business of selling motor vehicles at retail in Iowa, including those selling more than 6 vehicles in a 12-month period.
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.
StateIABond amount$75,000Term lengthContinuousObligeeIowa Department of TransportationRenewalThe bond remains in effect continuously until cancelled by the surety. While the bond is continuous, the dealer license must be renewed every two years, and the dealer must pay annual premiums to the surety company to m…Bond classLicense BondCategoryMotor VehicleBondBond for Motor Vehicle Dealer and/or Towable Recreational Vehicle DealerStatutory referenceIowa Code Section 322.4(1)(g)JurisdictionState
