Designated Agent Bond for Illinois Vehicle Dealers
Any person engaged in the business of selling or dealing in, on consignment or otherwise, 5 or more vehicles during the year, or who acts as an intermediary, agent, or broker for any licensed dealer or vehicle purchaser. Required when: Required as a condition of obtaining and maintaining a new or used motor vehicle de…
Overview
What it is.
Any person engaged in the business of selling or dealing in, on consignment or otherwise, 5 or more vehicles during the year, or who acts as an intermediary, agent, or broker for any licensed dealer or vehicle purchaser. Required when: Required as a condition of obtaining and maintaining a new or used motor vehicle de…
Who usually needs it
Any person engaged in the business of selling or dealing in, on consignment or otherwise, 5 or more vehicles during the year, or who acts as an intermediary, agent, or broker for any licensed dealer or vehicle purchaser.
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.
StateILBond amount$50,000Term lengthAnnualObligeeIllinois Secretary of State, Dealer/Remitter Licensing SectionRenewalThe bond must be renewed annually and expires on December 31st of each year. It must be maintained for the first 60 consecutive months of business operations.Bond classLicense BondCategoryMotor VehicleBondDesignated Agent Bond for Illinois Vehicle DealersStatutory reference625 ILCS 5/5-101 and 625 ILCS 5/5-102JurisdictionState
