Idaho Vehicle Dealer Bond Overview
- Purpose: To protect consumers from fraud and unlawful business practices
- Who Needs It: Anyone who sells 5 or more vehicles per year in Idaho
- Regulating Body: The Idaho Transportation Department
- Bond Amount: $10,000–$40,000, based on license type
- Minimum Price: $100, credit-based
What Is an Idaho Vehicle and Vessel Dealer Bond?
An Idaho vehicle and vessel dealer bond ensures dealerships follow state law and operate honestly. The Idaho Transportation Department (ITD) requires you to file a surety bond to get a dealer license.
Bond Coverage Requirements for Idaho Dealers
Your bond amount depends on your license type.
| License Type | Bond Amount |
|---|---|
| Motorcycle, ATB, UTV, Snowmobile Dealer | $10,000 |
| Retail Vehicle Dealer | $20,000 |
| Wholesale-Only Vehicle Dealer | $40,000 |
How Much Do Auto Dealer Bonds Cost in Idaho?
Idaho auto dealer bond premiums start at 1% of the total bond amount:
- The $10,000 motorcycle dealer bond starts at $100.
- The $20,000 retail dealer bond starts at $200.
- The $40,000 wholesale dealer bond starts at $400.
Apply for a free quote now! Underwriters will review your personal credit score and other financial information to determine your exact rate.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does an Idaho Motor Vehicle Dealer Bond Work?
An Idaho motor vehicle dealer bond creates a legal contract between three parties.
| Bond Party | Description |
|---|---|
| Principal | The vehicle dealer filing the bond |
| Obligee | The Idaho Transportation Department requiring the bond |
| Surety | The issuing surety provider |
This bond is your financial guarantee to the IDT that you’ll uphold all Idaho vehicle dealer laws. For example, you promise not to:
- Use misleading advertising
- Buy or sell a stolen vehicle
- Display a vehicle without a title for sale
- Violate safety and odometer requirements
If you break these terms, harmed parties can file bond claims. The surety will pay valid claims up to the full bond amount. However, you’re responsible for refunding the surety.
How Do I Get Bonded?
Once you know which bond you need, fill out the application form. We’ll run a soft credit check and send you a free quote within one business day.
After payment, you’ll receive your official bond form via email. Be sure to sign and file it with the ITD.
Can I Get Bonded With Bad Credit?
You might still qualify for an Idaho car dealer bond even with bad credit, but you’ll likely pay a higher premium. Apply for a free quote today with no impact on your credit score.
How Do I Renew My Bond?
Idaho vehicle and vessel dealer bonds expire annually. Before it’s time to renew, we’ll send you reminders and an invoice. Just pay the premium to extend your bond for another year.
How Do I Update My Bond Information?
Typically, your surety company can make changes to your form through a bond rider. Email [email protected], and we’ll take care of any updates for you.
How to Become a Licensed Vehicle Dealer in Idaho
If you sell five or more vehicles per year, you need a dealer license from the Idaho Transportation Department. To apply, follow these steps:
- Complete pre-licensing education and pass an exam (used-only or wholesale-only)
- Register your business with the SoS and call the Dealer Team to verify if your dealership name is available
- Get a seller permit number from the Idaho Tax Commission and a federal Employer Identification Number
- Buy a surety bond in the required amount
- Get a liability insurance policy
- Pay $300 to the Idaho Consumer Asset Recovery Fund (wholesale-only is exempt)
- Get a letter of zoning approval from your local authority
- Complete the dealer application form and the salesman application for all employees
The ITD typically takes 30 days to process applications. You can manage and renew your license online through the dealer portal.
Do I Need to Complete Continuing Education?
If you own a used-only or wholesale-only dealership, you need to complete four hours of continuing education annually. You must register with an approved provider to enroll:
