Any person engaged in the business of selling, offering to sell, soliciting, or advertising the sale of five or more motor vehicles per year, including those acting as brokers on behalf of others. Required when: Obtaining or renewing a motor vehicle dealer license. Exemptions: Banks, finance, and insurance companies s…
Overview
What it is.
Any person engaged in the business of selling, offering to sell, soliciting, or advertising the sale of five or more motor vehicles per year, including those acting as brokers on behalf of others. Required when: Obtaining or renewing a motor vehicle dealer license. Exemptions: Banks, finance, and insurance companies s…
Who usually needs it
Any person engaged in the business of selling, offering to sell, soliciting, or advertising the sale of five or more motor vehicles per year, including those acting as brokers on behalf of others.
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.
StateTNBond amount$50,000Term length2 yearsObligeeTennessee Motor Vehicle CommissionRenewalThe bond must be renewed every two years concurrently with the motor vehicle dealer license renewal.Bond classLicense BondCategoryMotor VehicleBondMotor Vehicle Dealer BondStatutory referenceTenn. Code Ann. § 55-17-111JurisdictionState
