Alabama increases used car dealer bond amount to $25,000

used car

Effective August 1, 2014, Alabama House Bill 400 will increase the required surety bond amount for dealers of used motor vehicles from $10,000 to $25,000.

The bill has already been passed and is now awaiting the signature of Gov. Robert J. Bentley. The Alabama Department of Revenue will provide the updated bond form once the bill is signed into law.

In Alabama, new car dealers have always been required to post the $25,000 bond amount, but the change in legislation will directly affect used car dealers, designated agents and dismantlers who will be required to renew their bond this upcoming September to remain in compliance with the laws of the state and the industry. Additionally, any car dealer that was previously “grandfathered” into the lesser bond amount will be required to update to the increased bond amount between August 1 and the September 30 bond expiration.

Be aware that the Alabama used car dealer bond is also referred to as the Alabama motor vehicle dealer bond, MVD bond, auto dealer bond or DMV bond.

The experts at are familiar with this new bond requirement and are ready to assist you with all of your bonding needs. When you’re ready to get bonded, give us a call at 1 (800) 308-4358 Monday through Friday between 7 a.m. and 7 p.m. CST. Or, you can fill out our instant online contact form. You’ll be connected with an expert surety specialist who will walk you through each step of the bonding process.

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