Generic pricing
Many license bonds are commonly priced around 1–5% of the bond amount per year. Small bonds under $25,000 are often flat-rated around $100–$250 per year. Credit, state program, and underwriting can change the final price.
Platinum Bonds Insurance Agency
Research before you apply.California dealer bond
California Motor Vehicle Dealer Bond
For California DMV motor vehicle dealer license applicants and renewals.
Overview
What it is.
A California Motor Vehicle Dealer Bond is a financial guarantee required by the California DMV for many applicants who want to open or operate a car dealership in California. For many retail and general wholesale dealer applicants, the bond amount is $50,000.
Who usually needs it
California retail motor vehicle dealers, general wholesale dealers, motorcycle dealers, ATV dealers, and certain wholesale-only dealers depending on volume and license type.
Pricing & timing
What to expect.
Typical timeframe
Same-day approval is typical for many common license bonds. Some bonds take longer depending on the state, bond type, form, and underwriting requirements.
Details
Bond details.
FAQ
Common questions.
What is a car dealer bond?
A car dealer bond is a license bond required by a motor vehicle agency. It helps protect customers and the state if a dealer violates dealer laws or licensing rules.
Who needs a California motor vehicle dealer bond?
California DMV dealer bond requirements can apply to retail motor vehicle dealers, general wholesale dealers, motorcycle dealers, ATV dealers, and certain wholesale-only dealers.
How much is the California dealer bond?
California dealer bond amounts depend on dealer type. Retail and general wholesale dealers are commonly listed at $50,000, while motorcycle/ATV dealers and certain small wholesale-only dealers may have a $10,000 bond amount.
What does the bond cover?
The bond is there for customers and the state if a dealer breaks rules such as failing to transfer titles properly, misrepresenting vehicles, or engaging in fraudulent sales practices.
What should I have ready to apply?
Have the state, dealer type, DMV or agency form, business/license information, bond amount, and any renewal or new-license deadline.
More bonds
Keep researching.
Next step
Ready to move forward?
Use this path for California dealer license questions involving the DMV dealer bond requirement.