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Alaska Motor Vehicle Dealer Bond

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How much does an auto dealer bond cost in Alaska?

The Alaska Commissioner of Administration requires auto dealers to post $100,000 surety bonds.  SuretyBonds.com also offers these bonds for those who sell only motorcycles, in which case a $25,000 bond is required.

These bonds are subject to underwriting, so the price you’ll pay depends on a review of your personal credit report. However, qualified applicants could pay as little as 1% of the total bond amount.

Bond Type
$25,000Motor Vehicle Dealer BondMotorcycle Dealers
$100,000Motor Vehicle Dealer Bond

Why do I need this bond?

By purchasing an auto dealer bond in Alaska, principals (motor vehicle dealers) pledge to refrain from committing fraud or making fraudulent representations while on the job. Specifically, the bond protects any person who suffers loss or damage as a result of the principal’s unlawful business practices and violation(s) of the provisions of AS 08.66 up to the full amount of the bond. The principal must reimburse the surety for all damages paid out.

Looking for information on getting a bonded title for a vehicle in Alaska? Visit our vehicle ownership title bond page to find out why these bonds are required, how much they cost, and how to get yours today.

What’s the fine print?

Alaska motor vehicle dealer bonds remain in full force and effect unless canceled by the surety. The surety can cancel the bond by submitting written notice of cancellation to the Commissioner at the Division of Motor Vehicles in Anchorage, Alaska.

A notary public must acknowledge the surety bond form.

The Alaska auto dealer license expires on January 1 every two years.

How to become a motor vehicle dealer in Alaska

To register as an auto dealer or buyer’s agent in Alaska, applicants must submit the following to the Vehicle Services Department, located at the Anchorage DMV:

  • An Application for Dealer License
  • An original notarized surety bond in the proper amount, signed by an owner, partner, corporate officer, or member as “Principal”
  • Photos of each owner, partner, corporate officer, or member, as well as the dealership location
  • A business license
  • Proof of liability insurance and worker’s compensation insurance
  • An Application for Dealer Plates (if applicable)
  • A $50 registration fee

Every two years, the dealer or buyer’s agent will be sent a letter and appropriate enclosures for renewal for the following two-year period. This renewal letter is a courtesy; a dealer’s or buyer’s agent’s timely renewal should not be based upon receipt of this letter.

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