Auto Dealer Bonds

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Auto Dealer Bond Guide 

Before receiving a motor vehicle dealer license, applicants typically need to provide a surety bond guaranteeing they will comply with industry regulations. Learn everything you need to know about car dealership bond requirements in this guide. 

What Is an Auto Dealer Bond? 

An auto dealer bond is a surety bond required for almost all new and used car dealers. Dealer bonds protect consumers from fraud and wrongful actions committed by car dealerships and their employees. 

This bond goes by a variety of names, including: 

  • Automobile bond
  • Car dealer bond
  • Dealer bond
  • Wholesale dealer bond
  • Motor vehicle dealer bond
  • Used car dealer bond

Where to Buy Your Dealership Bond

Whether you're establishing a new car dealership or looking for a better rate on your current bond, you’re in the right place! is the nation’s leading surety provider with the fastest and easiest bonding process. 

Call now or apply online. We’ll find the best price and provide your free quote within hours.

How Does a Dealer Bond Work?

The exact protection an auto dealer bond provides depends on local laws. Select your state for more specific information:

How Much Does an Auto Dealer Bond Cost?

Applicants with strong credit could pay as little as 1% of the total bond amount for an auto dealer surety bond. For example, a $50,000 motor vehicle dealer bond would cost just $500. 

The exact premium is determined through underwriting, which accounts for the following factors:

  • Bond amount
  • Bond term length 
  • Personal credit for all owners

Can I Get an Auto Dealer Bond With Bad Credit?

Don’t let your financial situation keep you from getting the bond you need. Our Bad Credit Bonding Program gives 99% of applicants access to auto bonds.

You may also qualify for our premium financing plan which breaks up the bond premium into smaller payments over time. 

Looking for More Information on Starting a Dealership?

Our How to Get an Auto Dealer License Guide has all the information you need to start selling cars, including application requirements, fees, and much more.

Call 1 (800) 308-4358 to talk with a Surety Expert