The Illinois Motor Vehicle Dealer (Designated Agent) Bond is a $50,000 surety bond required by the Illinois Secretary of State for all motor vehicle dealers operating in the state. This bond protects consumers, sellers, financiers, and government agencies from financial losses caused by dealer fraud, licensing violati…
Overview
What it is.
The Illinois Motor Vehicle Dealer (Designated Agent) Bond is a $50,000 surety bond required by the Illinois Secretary of State for all motor vehicle dealers operating in the state. This bond protects consumers, sellers, financiers, and government agencies from financial losses caused by dealer fraud, licensing violati…
Who usually needs it
Motor vehicle dealers in Illinois who sell, deal in, consign, or act as intermediaries/brokers for five or more motor vehicles per calendar year. This includes used vehicle dealers and others who advertise intent to sell vehicles. Required for the first 60 consecutive months (5 years) of dealership operations for each physical location. New franchise dealer…
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$50,000ObligeeIllinois Secretary of State, Vehicle Services Department, Dealer Licensing SectionBond classLicense BondCategoryMotor VehicleBondMotor Vehicle Dealer (Designated Agent) BondPlain descriptionThe Illinois Motor Vehicle Dealer (Designated Agent) Bond is a $50,000 surety bond required by the Illinois Secretary of State for all motor vehicle dealers operating in the state. This bond protects consumers, sellers,…Who needs this bondMotor vehicle dealers in Illinois who sell, deal in, consign, or act as intermediaries/brokers for five or more motor vehicles per calendar year. This includes used vehicle dealers and others who advertise intent to sel…
FAQ
Common questions.
Who needs the Illinois Motor Vehicle Dealer (Designated Agent) Bond?
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.
How long must I maintain the Illinois Motor Vehicle Dealer 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.
What does the Illinois Motor Vehicle Dealer bond protect against?
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.
