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Connecticut Auto Dealer, Repairer or Leasing Bond

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How much does a Connecticut auto dealer bond cost?

The Connecticut Department of Motor Vehicles requires motor vehicle dealers, repairers, and leasing/renting companies to post surety bonds to legally work within the state. Auto dealers must post a $50,000 bond, motor vehicle repairers must post a $5,000 bond, and motor vehicle renting/leasing companies must post a $10,000 surety bond.

Connecticut leasing or rental company and vehicle repairer bonds are issued instantly and cost just 1% of the total bond amount. Surety bonds for Connecticut vehicle dealers are subject to underwriting, but they can cost as little as $250.

Bond Type
$10,000Auto Dealer, Repairer or Leasing BondLimited Repairer
$15,000Auto Dealer, Repairer or Leasing BondLeasing
$25,000Auto Dealer, Repairer or Leasing BondGeneral Repairer
$60,000Auto Dealer, Repairer or Leasing BondMotor Vehicle Dealer

Why do I need a Connecticut motor vehicle dealer bond?

Connecticut vehicle dealer bonds ensure that principals (dealer, repairers, and leasing/renting companies) conduct business in compliance with all state and federal laws. If the principal conducts business unethically and unlawfully, the bond protects any person who suffers financial loss as a result of the principal’s actions. The surety covers all damages up to the full penal sum of the bond, and the principal must reimburse the surety for all damages paid out.

Looking for information on getting a bonded title for a vehicle in Connecticut? 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.

Connecticut auto dealer bond considerations

Connecticut motor vehicle dealer, motor vehicle repairer, and motor vehicle leasing or rental company bonds remain in full force and effect until canceled or violated. The surety can cancel the bond by giving written notice to the state at least 30 days prior to the effective termination date.

Applicants should be sure to indicate the correct license type on the surety bond form.

How to obtain a motor vehicle dealer or repairer license in Connecticut

Needed Information

To become a licensed motor vehicle dealer or motor vehicle repairer in Connecticut, applicants must provide the following information and materials:

  • the type of license
  • the name under which business will be conducted
  • the full address of the location for which the license is being requested
  • the mailing address (if different from the location address)
  • the type of business ownership/certification
  • proof of a factory franchise to sell vehicles at the business location
  • a surety bond in the proper amount

Needed Steps

Once applicants have that information available, they must take the following steps:

  1. Complete the applicable Connecticut dealer/repairer license application and have it notarized.
  2. Provide a site drawing (8 1/2” x 12” recommended).
  3. Obtain a Waste Oil Disposal Certificate Letter from a waste oil transporter registered with the Connecticut Department of Environmental Protection.
  4. Obtain a Connecticut State Sales Tax Permit.
    Contact the State of CT Department of Revenue Services, 450 Columbus Blvd., Ste 1, Hartford, CT 06103-1837 for more information.
  5. Provide a Connecticut Financial Responsibility Insurance Certificate (Form R1325d).
  6. Pay the $140 application fee.
    Other fees include:
    New Car Dealer License: $700
    Used Car Dealer License: $560
    General or Limited Repairer License: $340
    Dealer or Repairer Plate: $140 per plate
    Safety Plate Fee: $5 per plate

Note: The application explains the types of facilities and signage needed to qualify for each particular type of license.

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