D.C. Vehicle Dealer Bond Overview
- Purpose: To protect the public from financial losses if dealers break laws or commit fraud
- Who Needs It: All new and used motor vehicle dealers in D.C.
- Regulating Body: The D.C. Department of Licensing and Consumer Protection
- Bond Amount: $25,000
- Minimum Price: $250; credit-based
What Is a Washington D.C. Motor Vehicle Dealer Bond?
A Washington D.C. motor vehicle dealer bond is a financial guarantee. It ensures that new and used dealers follow laws and regulations and fulfill their customer contracts.
These $25,000 surety bonds protect the public from financial losses if dealers do not comply with district laws or commit fraud.
Who Needs a Dealer Bond in D.C.?
In the District of Columbia, new and used car dealers are required to get a surety bond as part of the licensing process.
If you operate a used car lot, you must file a separate $25,000 used car lot bond with the Department of Consumer and Regulatory Affairs. This bond guarantees that lots follow D.C. regulations regarding the sale of used vehicles.
How Much Do Dealer Bonds Cost in Washington D.C.?
The cost of a motor vehicle dealer bond in Washington, D.C. starts at $437 for a two-year term. Rates vary based on soft credit preview. Apply now to receive your free, personalized quote!
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a District of Columbia Motor Vehicle Dealer Bond Work?
A motor vehicle dealer bond creates a financial contract between three parties.
| Bond Party | Description |
|---|---|
| 1) Principal | The auto dealer filing the bond |
| 2) Obligee | The D.C. Department of Licensing and Consumer Protection |
| 3) Surety | The issuing surety provider |
If you violate the bond terms and harm another party, the surety company will cover claims up to the full bond amount. Then, you’re responsible for reimbursing the surety.
How Do I Get an Auto Dealer Bond in Washington D.C.?
Getting a D.C. motor vehicle dealer bond is fast and easy with SuretyBonds.com. Follow these steps to secure your bond:
- Apply: Submit your application online at SuretyBonds.com.
- Quote: Receive your bond quote within one business day.
- Purchase: Complete your purchase through our secure online checkout.
When you apply, you’ll need to provide your dealer license number, business address, dealership name and types of vehicles sold (new or used).
Your bond term must match your license term, which must begin on the first of the month and expire the day before.
Can I Get Bonded With Bad Credit?
Having lower personal credit as a vehicle dealer may impact your premium rate, but it doesn’t always disqualify you from getting a bond. We work with a variety of markets to approve 99% of applicants.
How Do I Renew My Bond?
To keep your bond active, renew it before the end of its two-year term. After paying your renewal invoice from SuretyBonds.com, you’ll receive instructions via email to complete the renewal process.
How to Become a Licensed Motor Vehicle Dealer in Washington D.C.
The D.C. Department of Motor Vehicles oversees licensing for auto dealers, including the $25,000 surety bond requirement. To get your license, submit your online dealership application with the following documentation:
- Clean hands self-certification
- Basic business application
- Occupancy permit
- Proof of current insurance
- Federal tax ID form
- Copy of owner's state-issued ID
- Copy of each salesperson's state-issued ID
- Motor vehicle dealer bond
Find more guidance in the resources below.
