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Idaho Vehicle and Vessel Dealer Bond

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How much does an Idaho auto dealer bond cost?

The Idaho Transportation Department requires vehicle and other vessel dealers who work in the state to post a surety bond. Dealers who sell motorcycles, UTVs, ATVs, or snowmobiles need $10,000 of coverage. Wholesale dealers are mandated to file $40,000 surety bonds, and retail motor vehicle dealers need $20,000 of coverage.

These bonds are subject to underwriting, which means surety bond costs are determined based on an applicant’s credit report. With strong financial credentials, customers could pay as little as 1% when working with SuretyBonds.com.

Bond Type
$10,000Vehicle and Vessel Dealer BondMotorcycle, ATB, UTV, Snowmobile Dealer
$20,000Vehicle and Vessel Dealer BondRetail Motor Vehicle Dealer
$40,000Vehicle and Vessel Dealer BondWholesale-only Motor Vehicle Dealer

Why do I need an Idaho auto dealer bond?

Vehicle and vessel dealer bonds protect customers from fraudulent business transactions at the hands of dealers. By posting this bond, a dealer agrees to abide by all rules and regulations outlined in the Idaho Code, as well as those enforced by the Idaho Transportation Department and federal motor vehicle safety standards. Prohibited acts include, but are not limited to:

  • using any misleading advertising
  • knowingly purchasing or selling a stolen vehicle
  • engaging in business without a valid license
  • knowingly purchasing or selling a vehicle that has been altered or has a removed vehicle identification number
  • displaying for sale a vehicle that doesn’t have a title

If these or other laws are broken, a claim can be made against the bond to provide reparation for damages.

Looking for information on getting a bonded title for a vehicle in Idaho? Visit our vehicle ownership title bond page to find out why these bonds are required, how much they cost, and how to get yours today.

Considerations for Idaho auto dealer bonds

The bond form must indicate whether the applicant is a wholesale-only dealer, retail dealer, or a dealer selling only motorcycles, ATVs, UTVs, or snowmobiles. The dealership’s physical location must be listed on the bond form.

If the bond is to be canceled, the surety must provide 30 days' written notice to the Idaho Transportation Department Board of Directors. The surety remains liable for all claims filed against this bond during this period.

How to become a vehicle or vessel dealer in Idaho

Purchasing a vehicle and vessel dealer bond is just one part of becoming a licensed dealer in Idaho. To become a dealer in Idaho, you must complete the following requirements to get your license:

  1. Submit a completed and notarized Application for Vehicle or Vessel Dealership License.
    If your business is a corporation, LLC, LP, or LLP, you must also submit a copy of the business’s status from the Secretary of State’s office.
    An individual company must apply for and record a name filing with the Secretary of State and submit verification of that filing with the dealer application.
    The initial application for new and/or used dealerships is $190, while the initial application ICAR (retail) fee is $300. These fees can be paid via a check made payable to Idaho Transportation Department.
    The application, documentation and fees must be sent to Dealer Services, Idaho Transportation Department, P.O. Box 34, Boise ID 83731-0034.
  2. Attend an eight-hour licensing course and pass a closed-book exam if you are applying to be a used-only or wholesale dealer.
  3. Submit a certificate of liability insurance in the amount of not less than $25,000 bodily injury or death for one person, or $50,000 for two people, and $15,000 for injury or destruction of property.
  4. Submit a surety bond; the bond form can be found on the fourth page of the application.
  5. After the application has been processed, the Dealer Licensing Unit will assign an investigator to evaluate the dealership property. If the investigation reveals the dealer is in compliance, a 90-day temporary license will be issued; a permanent license will be issued after the 90-day follow-up audit is approved by the investigator.

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