Hawaii Motor Vehicle Dealer Bond Overview
- Purpose: To protect buyers from harm and malpractice by motor vehicle dealers
- Who Needs It: Anyone who sells more than 3 cars or motorcycles a year
- Regulating Body: The Hawaii Motor Vehicle Industry Board
- Bond Amount: $10,000–$200,000, based on dealership type and sales volume
- Minimum Price: 1% starting premium for a one-year term
What Is a Hawaii Motor Vehicle Dealer Bond?
A Hawaii motor vehicle dealer bond is a form of financial security that ensures that dealers will follow state laws.
When a dealer cannot provide an acceptable inventory or flooring line of credit, the Hawaii Motor Vehicle Industry Board may allow applicants to get a surety bond as an alternative form of security. This optional surety bond proves financial responsibility and protects buyers from fraud.
Bond Coverage Requirements for Hawaii Motor Vehicle Dealers
The bond coverage amount you need depends on the type and quantity of vehicles you sell. We offer used and new motor vehicle dealer bonds and motorcycle bonds. Determine the coverage amount you need using the table below.
| Bond Coverage Amount | Motor Vehicle Sales |
|---|---|
| $10,000 | Used motorcycles and scooters |
| $25,000 | Sells less than 60 used vehicles a month |
| $50,000 | Sells less than 10 new vehicles a month |
| $100,000 | Sells more than 60 used vehicles a month |
| $200,000 | Sells more than 10 new vehicles a month |
How Much Do MVD Bonds Cost in Hawaii?
Hawaii motor vehicle dealer bond rates vary based on coverage amount and personal credit. Premiums start at 1%. Additionally, you can select a multi-year term to save up to 25%. Apply for a quote today!
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a Hawaii Dealer Bond Work?
When you purchase a motor vehicle dealer bond, you enter a legal agreement with three parties.
| Bond Party | Description |
|---|---|
| 1. Principal | You, the motor vehicle dealer |
| 2. Obligee | The Hawaii Motor Vehicle Industry Board |
| 3. Surety | The issuing surety provider |
As the principal, you promise to follow the Motor Vehicle Industry Licensing Act. If you break these terms, the surety will pay for valid claims and you must reimburse the surety.
How Do I Get a Vehicle Dealer Bond in Hawaii?
Follow these quick steps to get your motor vehicle dealer bond:
- Select the bond coverage you need
- Provide personal and business information
- Apply for a quote
- Pay for your bond at checkout
- File your bond with the Motor Vehicle Industry Licensing Board
You can get your quote within one business day. After payment, you can find your bond form in your email inbox within minutes!
How Do I File My Bond?
File your bond with your license application by mailing materials to the following address:
Motor Vehicle Industry Licensing Board
DCCA, PVL Licensing Branch
P.O. Box 3469
Honolulu, HI
Or, you can deliver your materials by hand to the following location:
335 Merchant St, Room 301
Honolulu, HI 96813
Can I Get Bonded With Bad Credit?
We work with a variety of surety markets to approve 99% of applicants. If you’re worried about qualifying, read about our Bad Credit Bonding Options.
How Do I Renew My Bond?
Hawaii motor vehicle dealer bonds expire annually, unless you select a multi-year term. We’ll send renewal notices starting 90 days prior to the expiration date. Just follow the renewal instructions to pay the invoice.
Have questions? Call 1(800)308-4358 to speak to a surety expert.
How Do I Update My Bond Form?
If you need to update information on your bond form, email [email protected] or call 1(800)308-4358. A friendly surety expert will assist you with a bond rider for basic changes or issue you a new bond.
How to Become a Motor Vehicle Dealer in Hawaii
The Hawaii Motor Vehicle Industry Board Licensing Board handles all motor vehicle dealer licenses. To get your license, submit the following materials to the board:
- Application
- Self inspection report
- Photographs
- Rental or Lease Agreement
- Inventory or flooring line of credit* or surety bond in the correct amount
- Financial statement
- $50 application fee
- Applicable license fee
- Franchise information (if applicable)
- Entity registration for corporations, partnerships, LLCs or LLPs
- Tradename (if applicable)
- Zoning compliance
- Repair facilities, if applicable
- List of employed salespersons
*Note: Note: Lines of credit must be from a federally-insured financial institution or a financier with at least $50 million net worth or a security agreement filed at the Bureau of Conveyances, State of Hawaii, Department of Land and Natural Resources.
Refer to the applicant checklist for detailed application requirements and instructions.
How Much Does It Cost to Become a Dealer?
All license applicants will pay a non-refundable $50 application fee. Additional licensing fees vary based on the following circumstances:
- If you sell new versus used vehicles
- If you apply in an even or odd-numbered year
- Your dealership location
The charts below outline fee requirements for motor vehicle dealer applicants.
| Dealer Type | Fees |
|---|---|
| New Vehicle Dealer: Honolulu | $487 license fee & $148 CRF |
| Used Vehicle Dealer & Motorcycle-Scooter: Honolulu | $195 license fee & $148 CFR |
| New Vehicle Dealer: Islands | $243 license fee & $148 CRF |
| Used Vehicle Dealer & Motorcycle-Scooter: Islands | $97 license fee & $148 CRF |
| Dealer Type | Fees |
|---|---|
| New Vehicle Dealer: Honolulu | $487 license fee & $74 CRF |
| Used Vehicle Dealer & Motorcycle-Scooter: Honolulu | $195 license fee & $74 CFR |
| New Vehicle Dealer: Islands | $243 license fee & $74 CRF |
| Used Vehicle Dealer & Motorcycle-Scooter: Islands | $97 license fee & $74 CRF |
The above costs do not include your surety bond premium. Depending on the coverage amount and personal credit, Hawaii motor vehicle dealer bonds typically cost $100 to $2,000.
