This bond is required for anyone who wants to open a new car dealership in Tennessee. The state requires this $50,000 bond to protect consumers who buy vehicles from the dealer. If the dealer breaks state laws, engages in fraud, or doesn't follow proper business practices when selling cars, customers can file a claim …
Overview
What it is.
This bond is required for anyone who wants to open a new car dealership in Tennessee. The state requires this $50,000 bond to protect consumers who buy vehicles from the dealer. If the dealer breaks state laws, engages in fraud, or doesn't follow proper business practices when selling cars, customers can file a claim …
Who usually needs it
Individuals or businesses selling more than 5 motor vehicles per year in Tennessee must obtain this bond to qualify for a motor vehicle dealer license. This applies to motor vehicle dealers who buy, sell, lease, rent, repair, or exchange 5 or more vehicles annually, with a separate $50,000 bond required for each branch location.
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$50,000ObligeeState of TennesseeBond classLicense BondCategoryMotor VehicleBondTennessee Motor Vehicle Dealer Bond (New)JurisdictionStatePlain descriptionThis bond is required for anyone who wants to open a new car dealership in Tennessee. The state requires this $50,000 bond to protect consumers who buy vehicles from the dealer. If the dealer breaks state laws, engages …Who needs this bondIndividuals or businesses selling more than 5 motor vehicles per year in Tennessee must obtain this bond to qualify for a motor vehicle dealer license. This applies to motor vehicle dealers who buy, sell, lease, rent, r…
