Motor vehicle dealers who self-finance any sale of a motor vehicle to a retail buyer without charging interest to the buyer (and who are not required to provide a surety bond to the Banking Commissioner under Title 5, Chapter 29). Required when: Required as a prerequisite to obtaining an annual motor vehicle dealer li…
Overview
What it is.
Motor vehicle dealers who self-finance any sale of a motor vehicle to a retail buyer without charging interest to the buyer (and who are not required to provide a surety bond to the Banking Commissioner under Title 5, Chapter 29). Required when: Required as a prerequisite to obtaining an annual motor vehicle dealer li…
Who usually needs it
Motor vehicle dealers who self-finance any sale of a motor vehicle to a retail buyer without charging interest to the buyer (and who are not required to provide a surety bond to the Banking Commissioner under Title 5, Chapter 29).
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$25,000Term lengthContinuousObligeeDelaware Department of Finance, Division of RevenueRenewalThe bond must be maintained in full force for the duration of the business operation; the associated business license is renewed annually by December 31.Bond classLicense BondCategoryMotor VehicleBondMotor Vehicle Dealer BondStatutory reference30 Del. C. § 3005(b)JurisdictionState
