How much does a motor vehicle dealer bond cost in California?
California’s Department of Motor Vehicles requires motor vehicle dealers to post $50,000 surety bonds prior to conducting business within the state. Motorcycle dealers, motorcycle lessor-retailers, ATV dealers and wholesale-only dealers who sell less than 25 vehicles per year must post $10,000 surety bonds.
These bonds are subject to underwriting consideration, so the price you’ll pay depends on a review of your personal credit report. Bad credit? No problem! SuretyBonds.com offers an exclusive bad credit bonding program through which we approve 99% of all applicants for the surety bonds they need quickly and easily. Request a free quote on your California auto dealer bond now!
| Bond Type | Bond Amount | Cost by Credit Score* | |||
|---|---|---|---|---|---|
| 680 and up | 679 - 600 | 599 or lower | |||
| Dealer Surety Bond Motor Vehicle Dealer | $50,000 | Starts at $500 | $750-2,500 | $2,500+ | Apply Now |
| Dealer Surety Bond Motorcycle Dealer, Motorcycle Lessor-retailer, All-terrain Vehicle Dealer or Wholesale-Only Dealer | $10,000 | Starts at $100 | $100-500 | $300+ | Apply Now |
We can provide your free, no-obligation surety bond quote within 1 business day of submitting your application. Call 1 (800) 308-4358 or click here to get started!
Why do I need this bond?
By posting a California dealer surety bond, principals (dealers) pledge to refrain from practicing fraud or making any fraudulent representation that causes a monetary loss to a purchaser, seller, financing agency or governmental agency. Specifically, these bonds ensure that principals conduct business in compliance with the conditions listed in section 11711, which is also referred to as the Vehicle Code.
If the principal fails to comply with these terms, the surety will cover damages to harmed parties up to the full penal sum of the bond ($50,000 or $10,000, respectively). The principal must reimburse the surety for all damages paid out.
Purchasing the California auto dealer bond you need is fast and easy when you work with the experts at SuretyBonds.com! Request your free bond quote now.
What’s the fine print?
Auto dealer bonds in California remain in full force and effect and run concurrently with the license period for which the license is granted.
The surety can cancel the bond in accordance with Article 13, Chapter 2, Title 14, Part 2 of the Code of Civil Procedure.
Some surety underwriting companies might require specific information, including the dealer’s license number and the length of time the dealer has been in business.
How to become a motor vehicle dealer in California
To become a licensed vehicle dealer in California, applicants must submit the following forms:
- OL 248A New Dealer Application Check List OR OL 248B Used, Dealer, Dealer-Wholesale Only, and Autobroker Application Check List
- OL 12 Application for Original Occupational License, (Part C)
- OL 21A Original Application for Occupational License, (Part A)
- OL 25 Surety Bond of Dealer
- OL 53 Authorization to Release Financial Information
- OL 124 Certificate of Proposed Franchise
- OL 902 Property Use Verification for Vehicle Dealer’s License
- and more
The following fees are required:
- $175 nonrefundable original application fee
- $1 Family Support Program fee
- $100 Autobroker fee
- $70 for each branch location
- $300 New Motor Vehicle Board Fee
- $70 for each dealer plate
- $72 for each motorcycle plate
More licensing information can be accessed from the Additional Resources section of this page.
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Additional Resources
California Department of Motor Vehicles Surety Bond OL 25
California Department of Motor Vehicles Surety Bond OL 25B
California Department of Motor Vehicles Application Requirements For Vehicle Dealers Auto Commercial
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