Dealer license bond

Car Dealer Bonds

For motor vehicle dealer license requirements by state, dealer type, agency, and bond amount.

Overview

What it is.

A car dealer bond is a license bond required by a state motor vehicle agency before a dealer license can be issued or renewed. The bond helps protect customers and the state if a dealer breaks dealer laws, fails to transfer title properly, misrepresents a vehicle, or creates a covered financial loss.

Who usually needs it

New car dealers, used car dealers, wholesale dealers, motorcycle or ATV dealers, and other motor vehicle businesses may need a dealer bond depending on the state and license type.

Pricing & timing

What to expect.

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.

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.

Application

What to do next.

Choose the state where the dealer license will be issued.
See the state-specific dealer bond details for that state.
Fill out the quick application.

Choose a path.

Keep researching by state, or start the quick application when you are ready.

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Details

Bond details.

Bond typeDealer license bond

Who asks for itState motor vehicle agency or DMV

What changes by stateDealer type, bond amount, form, and obligee wording

Best first stepChoose your state and dealer license type

FAQ

Common questions.

What is a car dealer bond?

A car dealer bond is a license bond required by a state motor vehicle agency. It helps protect customers and the state if a dealer violates dealer laws or licensing rules.

Who usually needs a dealer bond?

New car dealers, used car dealers, wholesale dealers, motorcycle or ATV dealers, and other motor vehicle businesses may need a dealer bond depending on the state and license type.

Does the bond amount change by state?

Yes. Dealer bond amounts and forms vary by state, dealer type, and agency rules. Start with the state motor vehicle agency form or license notice.

What should I have ready to apply?

Have the state, dealer type, business/legal name, agency form, bond amount, and whether this is a new license or renewal.

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Next step

Ready to move forward?

Use this path when a state motor vehicle agency or dealer license form asks for a dealer bond.

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