Motor Vehicle Dealer (Designated Agent) Bond

The Illinois Motor Vehicle Dealer (Designated Agent) Bond must be maintained for the first 60 consecutive months (5 years) of dealership operations. The bond expires annually on December 31 and must be renewed each year by submitting a bond continuation certificate with your dealer license renewal to the Illinois Secretary of State. After the initial 5-year period, established dealers may have different bonding requirements depending on their compliance history.

The Illinois Motor Vehicle Dealer (Designated Agent) Bond is required for any person or business that sells, deals in, consigns, or acts as an intermediary/broker for five or more motor vehicles per calendar year in Illinois. This includes used vehicle dealers and others who advertise intent to sell vehicles. The bond must be filed with the Illinois Secretary of State as part of the dealer licensing process and maintained for the first 60 consecutive months (5 years) of operations. Each physical dealership location requires a separate $50,000 bond.

The $50,000 Illinois Motor Vehicle Dealer (Designated Agent) Bond protects consumers, sellers, financiers, and government agencies from financial losses caused by dealer violations. This includes fraud or deceitful practices, failure to remit taxes and fees to the state, odometer tampering, improper title transfers, and violations of the Illinois Vehicle Code (625 ILCS 5/). If a dealer causes financial harm through these violations, affected parties can file a claim against the bond for compensation up to $50,000. The dealer must then reimburse the surety company for any paid claims.