A Guide to Auto Dealer Bonding

SuretyBonds.com is legally licensed to issue car dealer bonds nationwide. Whether you work in California, Indiana, Florida or Texas, we can bond you!

Individuals looking to get their motor vehicle dealer license typically have to provide a surety bond to guarantee their dealership will comply with industry regulations. This type of license and permit bond is known by a number of different names:

  • automobile bond
  • car dealer bond
  • dealer bond
  • DMV bond
  • motor vehicle dealer bond
  • used car dealer bond

No matter the exact name, this bond type is used to protect consumers from fraud and other wrongful actions committed by dealerships and their employees.

Pay A Low Auto Dealer Bond Cost.

Qualified applicants could pay just $250 when purchasing this type of surety bond from SuretyBonds.com. Your exact premium will depend on a number of factors, such as:

  • the bond amount
  • the bond's duration
  • your financial credentials

Our specialists are brokers, which means we'll shop your bond with multiple underwriters to find you the lowest rate available. What are you waiting for? Get your free, no obligation price quote today!

Get An Auto Dealer Surety Bond With Bad Credit.

Don't worry if you have bad credit. SuretyBonds.com can help you! Our surety experts believe that every applicant should get the bond they need regardless of credit history. That's why we established an exclusive Bad Credit Bonding Program. We have access to underwriters who specialize in writing bonds for applicants with less-than-stellar credit scores. Qualified applicants can even choose our premium financing plan to break up their premiums into smaller, more manageable payments. Don't let your bad credit keep you from getting the bond you need. Apply today!

Apply Now, Quickly and Easily!

Whether you're establishing a new car dealership or are looking for a new surety bond company, look no further. To speak with a surety specialist immediately, call 1 (800) 308-4358 between 8 a.m. and 7 p.m. CST Monday through Friday. Or, you can submit an online contact form 24/7 in just two minutes. After reviewing your application, one of our surety specialists will call you to discuss your options. We'll help you get bonded quickly, easily and accurately - for the lowest rate available. 1

Learn More About This Type Of Surety Bond.

Harmed parties might make a claim on your bond to access financial reparation if you or your dealership:

  • misrepresents 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

The exact protection a dealer bond provides depends on the state and/or local laws that require it. Every state but Delaware, Ohio and Vermont requires its auto dealers to purchase bond insurance before they can be legally licensed to sell vehicles. Below you may access state-specific bond requirements for the most-requested states.

Arizona Auto Dealer Surety Bond

The Dealer Licensing Unit of Arizona's Motor Vehicle Division distributes licenses to auto dealers and enforces Arizona surety bond requirements. All auto dealers who sell new and/or used vehicles must provide $100,000 worth of coverage. All title service companies, brokers, wholesale auto auction dealers and wholesale motor vehicle dealers must provide $25,000 of coverage. Automotive recyclers must provide $20,000 of coverage. A separate, original form 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 original bond form to:

Dealer Licensing Unit
Arizona Motor Vehicle Division
P.O. Box 2100
Phoenix, AZ 85001

The Arizona Dealer Licensing Unit can be reached via phone at (602) 712-7571.

California Auto Dealer Bond

The California Department of Motor Vehicles oversees the auto dealer licensing process and sets the appropriate bond amount in California. New and used car dealers are required to provide $50,000 of coverage (form OL 25). An alternate $10,000 bond (form OL 25B) is required for motorcycle dealers, motorcycle realtor-lessors, all-terrain vehicle dealers and wholesale-only dealers.

Dealers will submit their original bond form to their local Occupational Licensing Inspections Office.

The California Department of Motor Vehicles can be reached at (800) 777-0133.

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 either get bonded in Florida or supply a letter of credit before receiving their auto dealer licenses.

  • General Florida auto dealers must provide $25,000 of coverage (HSMV form 86020) or a letter of credit in the same amount.
  • Recreational vehicle dealers must provide $10,000 of coverage or a letter of credit in the same amount.
  • Mobile home dealers must provide $25,000 of coverage (HSMV form 86018) or a letter of credit in the same amount.

Dealers will submit their original bond form 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.

Georgia Auto Dealer Bonding

The state of Georgia does not require all auto dealers to provide surety bonds in Georgia. However, dealers who sell used vehicles must provide $35,000 of coverage that will be valid for two years.

Dealers will submit their original bond form 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.

Auto Dealer Bonds in Texas

The Texas Department of Transportation is responsible for issuing and setting the surety bond rate for car dealers in Texas. When applying for an auto dealer license in Texas, each applicant must provide $25,000 of coverage 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 this coverage.

Dealers will submit their original bond form to:

Texas Department of Motor Vehicles
Motor Vehicle Division
Austin, Texas 78768
P.O. Box 2293

The Texas auto dealer licensing department can be reached at (888) 368-4689.

If you have any other questions about DMV bonds, please call us at 1 (800) 308-4358 between 8 a.m. and 7 p.m. CST Monday through Friday.

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