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Alabama Motor Vehicle Dealer Bond

How much does an auto dealer bond cost in Alabama?

The Alabama Department of Revenue’s Motor Vehicle Division requires the following professionals to post $25,000 surety bonds:

  • new motor vehicle dealers
  • used motor vehicle dealers
  • designated agents (dealers)
  • motor vehicle rebuilders
  • motor vehicle reconditioners
  • motor vehicle wholesalers

The price you’ll pay for your bond is based on a review of your personal credit report. Qualified applicants could pay as low as $175 for their bonds! Don’t let poor credit stop you from purchasing your surety bond quickly and easily. SuretyBonds.com offers an exclusive bad credit bonding program through which we approve 99% of applicants for the bonds they need. Request your free bond quote now!

If you’re looking for information about surety bonds for non-dealer designated agents in Alabama, click here. Automotive dismantlers and parts recyclers should click here.

Bond Type Bond Amount Cost by Credit Score*
680 and up 679 - 600 599 or lower
Motor Vehicle Dealer and Designated Agent Bond $25,000 Starts at $175 $175-1,200 $750+ Apply Now
*The bond premium rate quotes provided to you through this website are for pricing comparisons and quotation estimate purposes only. The bond rate quotes provided are based on general assumptions that may or may not be applicable to you and are subject to change at any time. These rate quotes do not constitute an offer of insurance, nor is any contract, agreement, or bond coverage implied, formed or bound by the provision of rate quotes. Bondability, final bond premium rate quotes and an offer of insurance, if any, will be determined by the insurance company providing your bond. You must contact us directly to obtain a quote for binding purposes.

Call 1 (800) 308-4358 or click here to connect with our team of surety bond experts. We’ll provide your free, no-obligation bond quote within 1 business day of submitting your application.

Why do I need this bond?

By posting an Alabama motor vehicle dealer and designated agent surety bond, principals (auto dealers, designated agents and motor vehicle rebuilders, reconditioners and wholesalers) pledge to conduct business in accordance with Sections 40-12-390 through 40-12-400 and Sections 32-8-34 and 32-20-22 of the Code of Alabama 1975. If the principal fails to conduct business according to the letter of the laws and terms of the surety bond contract, the bond protects the state and consumers from resulting financial losses up to the full bond amount ($25,000). The principal must reimburse the surety for all damages paid out.

Ready to get bonded quickly, easily and accurately? Start here!

What’s the fine print?

Auto dealer and designated agent bonds in Alabama remain continuous until canceled. To be released and discharged from any and all liability to the state, the surety can file a written cancellation request with the Alabama Department of Revenue. Cancellation becomes effective 60 days after the request is filed.

How to become a motor vehicle dealer in Alabama

To become a licensed motor vehicle dealer in Alabama, you must submit a completed license application. New and used vehicle dealers must do the following:

  • include their state sales tax number on their applications
  • describe the location of the place of business
  • enumerate the number of vehicles sold during the previous year
  • furnish a sign for the dealership
  • specify the type of license being applied for (new or used vehicle dealer, reconditioner, rebuilder or wholesaler)
  • provide proof of liability insurance
  • post a $25,000 surety bond
  • pay all required licensing and application fees
  • and more

There are additional licensing requirements for applicants wishing to obtain status as a designated agent.

Kickstart the licensing process by purchasing the Alabama auto dealer bond you need! Our experts make the bonding process fast and easy.

Ready to get started?

Get a FREE Motor Vehicle Dealer Bond Quote Today!

Alabama Department of Revenue Motor Vehicle Division

Alabama Department of Revenue Motor Vehicle Forms

Alabama Department of Revenue Motor Vehicle Division: Code of Alabama, 1975

The Code of Alabama 1975

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