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Delaware $25,000 Motor Vehicle Dealer Bond

Price Varies / 1 year term

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How much does a Delaware auto dealer bond cost?

The Delaware Division of Revenue requires motor vehicle dealers to post $25,000 surety bonds to legally operate within the state.

SuretyBonds.com issues these bonds for varying prices depending on the applicant’s personal credit report. Applicants with strong credit could qualify to pay as little as $250! Applicants with less-than-stellar credit shouldn’t be discouraged from applying for the bond they need. Our experts have a history of helping 99% of applicants qualify for their bonds quickly and easily, regardless of their financial credentials. Request your free bond quote now!

Bond Type
$25,000Motor Vehicle Dealer Bond

Ready to get bonded? Call 1 (800) 308-4358 or submit a bond request to connect with our team of experts, who can provide your free bond quote within one business day of submitting your application.

Why do I need a Delaware motor vehicle dealer bond?

Delaware auto dealer bonds are put in place to ensure that principals (motor vehicle dealers) conduct business in compliance with the provisions of Chapter 30 of the Delaware Code. If the principal fails to conduct business ethically and lawfully, the bond protects consumers who become injured by any wrongful act, omission, default, fraud, or misrepresentation committed by the dealer, up to the full bond amount.

Our team of experts is committed to getting you bonded quickly and for the lowest rate available. Submit a bond request now to get started!

How to become a Delaware motor vehicle dealer

The licensing requirements for Delaware auto dealers vary based on the type of dealership. Options include:

New Vehicle Dealership

  • Submit a Form MV29 application, along with a criminal background check, as well as a Form MV26
  • Inquire with the Division of Motor Vehicles that the chosen dealership name is not taken by a pre-existing company (approval from the prothonotary is also required if doing business as a DBA)
  • Submit a letter of franchise written by each make’s manufacturer
  • Maintain office located on the business’s physical site; this office must have sufficient desk space and filing cabinets to store records
  • Display a 24”x36” minimum business sign showing the name of the business
  • Maintain a display site showing a minimum of five vehicles
  • Keep a telephone installed with in the office under the business’s name (proper documentation required)
  • Produce proof of liability insurance coverage showing how many dealer tags are insured
  • Submit Planning & Zoning Office’s written approval; zoning approvals are required with the dealer application
  • Obtain an entrance permit provided by the Department of Transportation
  • Possess an annual business license granted by the Division of Revenue, along with a city business license if the site is within city/town limits
  • Submit to a Delaware personal criminal history check
  • Produce inspection approval from the Division of Motor Vehicles, which will grant the dealership a license after approval. The dealer must provide the Division with a rough estimate of how many vehicles it expects to sell within its first year; the fee for each dealer tag is $10.
  • Sell a minimum of five vehicles per year

If you need information on the applicable approving offices, click here.

Used Vehicle Dealership

  • Submit a Form MV29 application, along with a criminal background check, as well as a Form MV26
  • Submit evidence of corporations incorporated in Delaware and in good standing
  • Produce proof of a Delaware driver’s license awarded to each owner at least 90 days prior to the application
  • Inquire with the Division of Motor Vehicles that the chosen dealership name is not taken by a pre-existing company (approval from the prothonotary is also required if doing business as a DBA)
  • Maintain office located on the business’s physical site; this office must have sufficient desk space and filing cabinets to store records
  • Display a 24”x36” minimum business sign showing the name of the business
  • Maintain a display site showing a minimum of five vehicles
  • Keep a telephone installed with in the office under the business’s name (proper documentation required)
  • Produce proof of liability insurance coverage showing how many dealer tags are insured
  • Submit Planning & Zoning Office’s written approval; zoning approvals are required with the dealer application
  • Obtain an entrance permit provided by the Department of Transportation
  • Possess an annual business license granted by the Division of Revenue, along with a city business license if the site is within city/town limits
  • Submit to a Delaware personal criminal history check
  • Produce inspection approval from the Division of Motor Vehicles, which will grant the dealership a license after approval. The dealer must provide the Division with a rough estimate of how many vehicles it expects to sell within its first year; the fee for each dealer tag is $10.
  • Sell a minimum of five vehicles per year

If you need information on the applicable approving offices, click here.

Wholesale Dealership

  • Submit a Form MV29 application, along with a criminal background check, as well as a Form MV26
  • Produce proof of a Delaware driver’s license awarded to each owner at least 90 days prior to the application
  • Inquire with the Division of Motor Vehicles that the chosen dealership name is not taken by a pre-existing company (approval from the prothonotary is also required if doing business as a DBA)
  • Maintain office located on the business’s physical site; this office must have sufficient desk space and filing cabinets to store records
  • Keep a telephone installed with in the office under the business’s name (proper documentation required)
  • Produce proof of liability insurance coverage showing how many dealer tags are insured
  • Submit Planning & Zoning Office’s written approval; zoning approvals are required with the dealer application
  • Possess an annual business license given by the Division of Revenue, along with a city business license if site is within city/town limits
  • Produce inspection approval from the Division of Motor Vehicles, which will grant the dealership a license after approval. The dealer must provide the Division with a rough estimate of how many vehicles it expects to sell within its first year; the fee for each dealer tag is $10.
  • Sell a minimum of five vehicles a year
  • Wholesale dealers are not allowed to sell vehicles to the general public and can only sell to dealers and auctioneers

If you need information on the applicable approving offices, click here.

All auto dealer licenses have a set expiration date of December 31.

**Note: Dealers are not allowed to share their offices or lots with other dealerships.

Considerations for Delaware motor dealer bonds

Delaware auto dealer bonds remain in full force and effect for the period of time that the dealer conducts business in the state. The surety can cancel the bond by giving written notice of cancellation to the Delaware Division of Revenue at least 30 days before the effective date of cancellation.

More licensing information can be accessed from the “Additional Resources” section of this page.

Take the first step toward becoming a licensed auto dealer in Delaware by purchasing the surety bond you need!

Ready to get started?

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