A Delaware Motor Vehicle Dealer Bond is a $25,000 financial guarantee required for anyone who wants to sell cars in Delaware. This bond protects customers and the State of Delaware if a dealer breaks state laws, engages in fraud, or doesn't follow proper business practices. If a dealer cheats a customer or violates de…
Overview
What it is.
A Delaware Motor Vehicle Dealer Bond is a $25,000 financial guarantee required for anyone who wants to sell cars in Delaware. This bond protects customers and the State of Delaware if a dealer breaks state laws, engages in fraud, or doesn't follow proper business practices. If a dealer cheats a customer or violates de…
Who usually needs it
Motor vehicle dealers in Delaware who sell 5 or more vehicles (new or used) within a 12-month period must obtain this $25,000 surety bond as part of their dealer licensing requirements. The bond ensures consumer protection and guarantees payment of required taxes and fees to the State of Delaware.
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.
StateDEBond amount$25,000ObligeeState of DelawareBond classLicense BondCategoryMotor VehicleBondDelaware Motor Vehicle Dealer BondJurisdictionStatePlain descriptionA Delaware Motor Vehicle Dealer Bond is a $25,000 financial guarantee required for anyone who wants to sell cars in Delaware. This bond protects customers and the State of Delaware if a dealer breaks state laws, engages…Who needs this bondMotor vehicle dealers in Delaware who sell 5 or more vehicles (new or used) within a 12-month period must obtain this $25,000 surety bond as part of their dealer licensing requirements. The bond ensures consumer protect…
