Auto Dealer Bond
Individuals looking to get their motor vehicle dealer license typically have to provide an auto dealer bond as a financial guarantee that their dealership will comply with industry regulations. Auto dealer bond laws vary depending on where exactly an auto dealer will work. Each state's Department of Motor Vehicles has specific regulations related to auto dealer bonds.
Auto Dealer Bond Protection
Auto dealer bonds which are also also known as motor vehicle dealer bonds, DMV bonds and used car dealer bonds — protect consumers from fraud and other wrongful actions done by dealerships and their employees.
For example, harmed parties can make a claim on an auto dealer bond and gain financial reparation if a dealership
- misrepresents its merchandise
- uses unethical business practices to sell vehicles
- fails to deliver a valid certificate of title
- does not pay necessary motor vehicle fees
- does not forward sales tax payments to the state
Auto Dealer Bond Costs
The surety specialists at SuretyBonds.com can underwrite auto dealer bonds for as little as $250 for qualifying applicants. Having a high credit score is not a prerequisite for purchasing an auto dealer bond, as SuretyBonds.com accommodates for all clients. Because SuretyBonds.com works with so many markets, our specialists can offer premium financing through our distinctive bad credit program.
Get an Auto Dealer Bond
If you are establishing a new car dealership or are looking for a new surety bond producer, look no further. Call SuretyBonds.com at (800) 308-4358 and speak with one of our specialists immediately, or apply for an auto dealer bond online in just two minutes. After reviewing your application, one of our surety specialists will call you to discuss your options. Let us help you get you an auto dealer bond at a competitive rate!
State-specific Auto Dealer Bonds
Almost every state has an auto dealer surety bond requirement that is unique to that state. Below is some further information regarding auto dealer bonds in our most requested states.
Florida Auto Dealer Bonds
The Florida Department of Highway Safety and Motor Vehicles regulates auto dealers in the state. Various regulations require auto dealers to supply either a Florida surety bond or a letter of credit before receiving their auto dealer licenses.
- General Florida auto dealers must provide an original $25,000 Florida auto dealer bond (HSMV form 86020) or a letter of credit in the same amount.
- Recreational vehicle dealers must provide an original $10,000 Florida auto dealer bond or a letter of credit in the same amount.
- Mobile home dealers must provide an original $25,000 Florida auto dealer bond (HSMV form 86018) or a letter of credit in the same amount.
Dealers will submit their Florida auto dealer bonds to:
Florida Department of Highway Safety and Motor Vehicles
Division of Motor Vehicles
2900 Apalachee Parkway Room A312, Mailstop #65
Tallahassee, FL 32399
The Florida auto dealer licensing department can be reached at (850) 617-3003.
Texas Auto Dealer Bonds
The Texas Department of Transportation issues licenses and sets Texas surety bond regulations for auto dealers in the state. When applying for an auto dealer license in Texas, each applicant must provide a $25,000 Texas auto dealer bond that will be in effect for two years. All used car dealers, motorcycle dealers, wholesale dealers and wholesale auction dealers in the state must provide a Texas auto dealer bond.
Dealers will submit their Texas auto dealer bonds to:
Texas Department of Motor Vehicles
Motor Vehicle Division
P.O. Box 2293
Austin, Texas 78768
The Texas auto dealer licensing department can be reached at (888) 368-4689.
California Auto Dealer Bonds
The California Department of Motor Vehicles oversees the auto dealer licensing process and sets appropriate California surety bond requirements. New and used car dealers are required to provide a $50,000 California auto dealer bond (form OL 25). An alternate $10,000 California auto dealer bond (form OL 25B) is required for motorcycle dealers, motorcycle realtor-lessors, all-terrain vehicle dealers and wholesale-only dealers.
Dealers will submit their California auto dealer bond and other required licensing forms to their local Occupational Licensing Inspections Office.
The California Department of Motor Vehicles can be reached at (800) 777-0133.
Georgia Auto Dealer Bonds
The state of Georgia does not require all auto dealers to provide Georgia surety bonds. Only used car dealers must provide a $35,000 Georgia auto dealer bond that will be valid for two years.
Dealers will submit their Georgia auto dealer bonds to
Georgia State Board of Registration of Used Motor Vehicle Dealers & Used Motor Vehicle Parts Dealers
Used Motor Vehicle Dealers Division
P.O. Box 13446
Macon, GA 31208
The Georgia auto dealer licensing department can be reached at (404) 968-3880.
Arizona Auto Dealer Bonds
The Dealer Licensing Unit of Arizona's Motor Vehicle Division distributes licenses to auto dealers and enforces Arizona surety bond requirements. All new auto dealers and used auto dealers must provide a $100,000 Arizona auto dealer bond. All title service companies, brokers, wholesale auto auction dealers and wholesale motor vehicle dealers must provide a $25,000 Arizona auto dealer bond. Automotive recyclers must provide a $20,000 Arizona auto dealer bond. A separate, original Arizona auto dealer bond must be submitted for each application and for each county in which the licensee will establish a place of business (except for title service companies).
Dealers will submit their Arizona auto dealer bonds to
Dealer Licensing Unit
Arizona Motor Vehicle Division
P.O. Box 2100
Phoenix, AZ 85001
The Arizona Dealer Licensing Unit can be reached via e-mail at mvdlu@azdot.gov or phone at (602) 712-7571.
