Illinois Auto Dealer Bond Overview
- Purpose: To ensure vehicle dealers follow state law and operate ethically
- Who Needs It: All new and used vehicle dealers in Illinois
- Regulating Body: The Illinois Secretary of State — Dealer/Remitter Licensing Section
- Bond Amount: $50,000
- Minimum Price: $410, credit-based
What Is an Illinois Auto Dealer Bond?
An Illinois auto dealer bond protects consumers from fraudulent or negligent acts by dealers. If you sell, deal, or broker five or more vehicles per year, you’ll need a license and surety bond.
Note: If you sell manufactured homes, you’ll need a $150,000 designated agent bond instead.
How Much Do Auto Dealer Bonds Cost in Illinois?
Illinois auto dealer bonds start at $410 for a one-year term. Your exact rate will depend on your personal credit score. Qualified applicants typically pay under 2% of the bond amount.
These bonds always expire on December 31, so your premium will be prorated based on the purchase date. Apply for a free quote now!
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a Designated Agent Bond for Vehicle Dealers Work?
This surety bond holds you legally and financially responsible for following state laws. By filing it, you enter into this three-party agreement:
| Bond Party | Description |
|---|---|
| Principal | The auto dealer purchasing the bond |
| Obligee | The Illinois Secretary of State requiring the bond |
| Surety | The issuing surety provider |
If you break the bond terms, those affected can file claims. The surety will validate the claims and pay them up to the full bond amount. However, you’re responsible for reimbursement.
How Do I Get Bonded?
If you’re ready to get bonded, you’re in the right place! Simply follow these four steps to get a bond for your dealership:
- Fill out the quote request form
- Get your free quote within one business day
- Pay for your bond to receive it instantly via email
- Sign and file the bond form with the SOS
We’ll need some basic information about your business, such as your dealership name and address. If you’re a new license applicant and are unsure where to start, call 1(800)308-4358 to speak with one of our friendly surety experts.
Can I Get Bonded With Bad Credit?
You might still be able to get bonded with bad credit, but you’ll likely pay a higher premium. Visit our bad credit bonding page or apply for a free, no-obligation quote to learn more.
How Do I Renew My Bond?
Illinois auto dealer bonds expire on December 31 annually. When it’s time to renew, we’ll send you periodic reminders and an invoice. After paying the premium, you’ll receive a continuation certificate to file with the SOS.
Note: You only need to maintain a surety bond for the first five years of business.
How Do I Update My Bond Information?
Only your surety company can make changes to your official bond form. Email [email protected] with the updated information, and we’ll issue a bond rider if possible.
How to Become an Auto Dealer in Illinois
No matter your dealer type, you’ll need to follow these steps to get licensed with the Secretary of State:
- Register your business with the IL Department of Revenue
- Purchase a Department of Business Services Certificate of Good Standing
- Complete a used dealer training course (if applicable)
- Schedule an appointment with a Live Scan vendor
- Get a $50,000 surety bond
- Purchase a liability insurance policy
- Mail your application packet and supporting materials
- Pass a site inspection
Learn more about how to get an Illinois auto dealer license in our comprehensive guide.
Licenses expire annually on December 31, along with the surety bond. Be sure to complete the renewal process in advance to avoid any lapse in your license.
