A Motor Vehicle Dealer bond is required for anyone who wants to sell cars, trucks, or other vehicles in Delaware. This $25,000 bond protects customers and the State of Delaware if the dealer breaks laws or acts dishonestly—like misrepresenting a vehicle's condition or failing to transfer titles properly. Think of it a…
Overview
What it is.
A Motor Vehicle Dealer bond is required for anyone who wants to sell cars, trucks, or other vehicles in Delaware. This $25,000 bond protects customers and the State of Delaware if the dealer breaks laws or acts dishonestly—like misrepresenting a vehicle's condition or failing to transfer titles properly. Think of it a…
Who usually needs it
Motor vehicle dealers in Delaware who sell 5 or more vehicles within a 12-month period must obtain this bond, regardless of whether the vehicles are new or used. This includes dealers of cars, motorcycles, motor homes, and other vehicle types as required under Delaware Statutes Title 21 Chapter 63.
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 BondCategoryOtherBondMotor Vehicle DealerPlain descriptionA Motor Vehicle Dealer bond is required for anyone who wants to sell cars, trucks, or other vehicles in Delaware. This $25,000 bond protects customers and the State of Delaware if the dealer breaks laws or acts dishones…Who needs this bondMotor vehicle dealers in Delaware who sell 5 or more vehicles within a 12-month period must obtain this bond, regardless of whether the vehicles are new or used. This includes dealers of cars, motorcycles, motor homes, …
