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Delaware Motor Vehicle Dealer Bond

Price Varies / 1 year term

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How much does a Delaware motor vehicle dealer bond cost?

Delaware motor vehicle dealer bond costs start at $250 for the state-required 1-year term. Your exact premium will be provided after a quick application review. Apply online now to get your free, personal Delaware auto dealer bond quote!

How are motor vehicle dealer bonds obtained in Delaware?

You can apply for your Delaware motor vehicle dealer bond online 24/7. You'll need to provide the following information for Division of Motor Vehicles approval. 

  • dealer/dealership name
  • dealer license number, if available

Once your order has been processed, your official Delaware motor vehicle dealer bond will be delivered to your preferred mailing address.

How fast can I get an auto dealer bond?

Our industry-leading technology and responsive customer service team allow us to offer free quotes and deliver official Delaware auto dealer bonds faster than any other surety provider. The Division of Motor Vehicles requires your official Delaware auto dealer bond be physically issued and delivered to you. Orders placed by 4 PM CST Monday-Friday are typically shipped same-day. Choose overnight shipping during checkout if you're in a rush! 

If you have questions about the Delaware dealer bond requirement or your application, call 1 (800) 308-4358 to speak with a friendly surety expert. We're here to guide you through the auto dealer bond process so you can get back to running your business.

Bond Type
$25,000Motor Vehicle Dealer Bond

What is a Delaware motor vehicle dealer bond?

Delaware Code Title 30 §3005 requires individuals to file a $25,000 surety bond to be licensed as a motor vehicle dealer in the state. Delaware auto dealer bonds ensure motor vehicle dealers operate according to Delaware Code. The Delaware Code explains the bond specifically protects consumers injured by a licensed dealer's wrongful acts, including fraud, default, misrepresentation, or other omissions.

Why is this Delaware motor vehicle dealer bond required?

By filing a motor vehicle dealer surety bond, a licensed dealer agrees to operate their dealership according to Delaware Code. If they fail to do so, harmed consumers can submit a claim to the Department of Finance based on a court judgment. The issuing surety company will pay valid claims up to the full $25,000 bond amount, which the bonded dealer must then reimburse.

This Delaware surety bond is required for motor vehicle dealer licensing. If you operate a company that finances vehicle sales, you need a separate Delaware motor vehicle sales finance company bond.  

Who regulates licensing for auto dealers?

The Delaware Division of Motor Vehicles enforces regulations for the state's auto dealers. If you have questions about the surety bond requirement or your motor vehicle dealer license application, the DMV advises you contact Dealers Services by phone at 1 (302) 857-4665 or by email at [email protected].

How do I update or change my auto dealer surety bond form?

If the Delaware Division of Motor Vehicles requires your surety bond documentation to be updated for any reason, contact your surety provider. If you purchased your dealer bond from SuretyBonds.com, email our customer service team at [email protected] to explain the needed change.

The most common changes requested are the dealership's name or address.

How do I renew my car dealer bond?

You should renew your Delaware auto dealer bond before its current 1-year term expires. Once you pay your SuretyBonds.com renewal invoice, renewal instructions will be emailed to you to keep your car dealer bond active for your next license term. 

How do I get a Delaware motor vehicle dealer license?

The following documents must be submitted to the Division of Motor Vehicles in order to apply for a Delaware auto dealer license. 

  • dealership license application that includes a criminal history background check and signature authorizations
  • franchise letter from the manufacturer of each vehicle make being sold
  • proof of a working telephone
  • proof of liability insurance
  • zoning approval 
  • copy of entrance permit (only required for businesses located on a state-maintained road)
  • copy of the business license receipt (2 licenses are required for wholesale vehicle dealerships)
  • evidence of incorporation (if applicable)

In addition to the submission of a dealer license application and supporting documents, the following are requirements that must be met by dealerships. 

  • business office with a desk and filing cabinet to store records
  • sign with business name on the premises
  • display lot large enough for at least 5 vehicles
  • register DBA with Prothonotary's office (if applicable)

Dealer licenses will be issued after an inspection of the business location and approval by the Division of Motor Vehicles. 

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