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Hawaii Motor Vehicle Dealer Bond

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Why do I need an auto dealer bond in Hawaii?

The Motor Vehicle Industry Licensing Board of Hawaii requires all motor vehicle dealers to be licensed before engaging in business. Obtaining an auto dealer bond is a required step to becoming a licensed motor vehicle dealer.

These bonds exist to protect customers from fraud in connection with the purchasing, negotiating, and selling of motor vehicles. By posting a bond, motor vehicle dealers agree to abide by all rules and provisions of Chapter 437 of the Hawaii Revised Statutes.

How much will my Hawaii auto dealer bond cost?

Bond amounts are determined by the type of vehicles sold and the amount of vehicles sold.

Bond Type
$10,000Motor Vehicle Dealer BondSells used motorcycles and scooters
$25,000Motor Vehicle Dealer BondSells less than 60 used vehicles per month
$50,000Motor Vehicle Dealer BondSells less than 10 new vehicles per month
$100,000Motor Vehicle Dealer BondSells more than 60 used vehicles per month
$200,000Motor Vehicle Dealer BondSells more than 10 new vehicles per month

*This specific bond type is subject to underwriting, meaning that the cost is based on a review of the applicant's credit history and/or other qualifications.

How to become a licensed auto dealer in Hawaii

Applicants should follow these steps to become a licensed and registered motor vehicle dealer:

1. Apply for the correct license type.

The Motor Vehicle Dealer/Auction Application will ask you to choose between three types of licenses:

  • New vehicles
  • Used vehicles/motorcycles
  • Auction (all counties)

2. Register as a Hawaii business and establish a location for your dealership.

You must register online as a corporation, partnership, LLC, or LLP through the Business Registration Division and pay the associated fees.

The application will additionally ask you to attach photographs of your dealership; complete a self-inspection report, including a written description of the premises; and attach a copy of your rental/lease agreement.

3. Prepare a financial statement and obtain a Hawaii auto dealer surety bond.

Use the Motor Vehicle Dealer’s Financial Statement to submit a recent financial statement prepared by a licensed public accountant or certified public accountant.

Additionally, use the Motor Vehicle Dealer License Bond Form to attach your required surety bond.

4. Submit your application, along with the required documents and fees.

Once you have correctly filled out the application and attached all required documents, you must also attach a licensing fee, made payable to “Commerce and Consumer Affairs.” Your licensing fee amount will be based on when you are applying.

Mail all required items to:

Motor Vehicle Industry Licensing Board

DCCA, PVL Licensing Branch

P.O. Box 3469

Honolulu, HI 96801

Additional considerations for Hawaii auto dealers

Bonds may be canceled by the surety if a cancellation notice is submitted in writing to the State of Hawaii and the principal 30 days prior to the given cancellation date.

All licenses are subject to a biennial renewal. Licenses must be renewed by June 30 of even-numbered years.

Any individual who engages in motor vehicle sales activity shall also be required to be licensed as a motor vehicle salesperson, including those employed in the Finance and Insurance Department of the motor vehicle dealership.

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