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License Bond

Motor Vehicle Surety Bond

New motor vehicle dealers, used motor vehicle dealers, motor vehicle rebuilders, motor vehicle wholesalers, motorcycle dealers, trailer dealers, automotive dismantlers and parts recyclers, motor vehicle wholesale auctions, manufacturers, boat dealers, designated agents, and title service providers. Required when: Requ…

Overview

What it is.

New motor vehicle dealers, used motor vehicle dealers, motor vehicle rebuilders, motor vehicle wholesalers, motorcycle dealers, trailer dealers, automotive dismantlers and parts recyclers, motor vehicle wholesale auctions, manufacturers, boat dealers, designated agents, and title service providers. Required when: Requ…

Who usually needs it

New motor vehicle dealers, used motor vehicle dealers, motor vehicle rebuilders, motor vehicle wholesalers, motorcycle dealers, trailer dealers, automotive dismantlers and parts recyclers, motor vehicle wholesale auctions, manufacturers, boat dealers, designated agents, and title service providers.

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.

  1. Tell us the bond name, state, and amount on your form.
  2. Share business and applicant info so the team can quote it.
  3. Sign and pay; we issue the bond and send you the documents.
  4. 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.

Details

Bond details.

StateAL
Bond amount$50,000
Term lengthContinuous
ObligeeAlabama Department of Revenue, Motor Vehicle Division
RenewalThe bond remains in effect continuously until cancelled by the surety with 60 days' notice. However, the associated motor vehicle dealer license must be renewed annually between October 1 and September 30, and the suret…
Bond classLicense Bond
CategoryMotor Vehicle
BondMotor Vehicle Surety Bond
Statutory referenceSection 40-12-398, Code of Alabama 1975
JurisdictionState
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Next step

Ready to move forward?

Pin down whether this is your bond, then start the application. Ava can confirm the right state and license type if you are not sure.