Any person, firm, or corporation engaging in the business of a motor vehicle dealer, defined as selling more than five motor vehicles in a calendar year. Required when: Application for an initial or renewal motor vehicle dealer license. Exemptions: Individuals selling five or fewer motor vehicles per year are not requ…
Overview
What it is.
Any person, firm, or corporation engaging in the business of a motor vehicle dealer, defined as selling more than five motor vehicles in a calendar year. Required when: Application for an initial or renewal motor vehicle dealer license. Exemptions: Individuals selling five or fewer motor vehicles per year are not requ…
Who usually needs it
Any person, firm, or corporation engaging in the business of a motor vehicle dealer, defined as selling more than five motor vehicles in a calendar year.
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 to run concurrently with the license period. Renewal is typically handled by submitting a renewal certificate or a new bond form to the Commission during the license renewal wind…Bond classLicense BondCategoryMotor VehicleBondMotor Vehicle Dealer Surety BondStatutory referenceTenn. Code Ann. § 55-17-111JurisdictionState
