Iowa Dealer Bond Overview
- Purpose: To protect the public from fraudulent actions and license violations
- Who Needs It: Any person who sells more than three motor vehicles per year
- Regulating Body: The Iowa Department of Transportation
- Bond Amount: $75,000
- Minimum Price: $375; credit-based
What Is an Iowa Motor Vehicle Dealer Bond?
An Iowa motor vehicle dealer bond protects car buyers from damages caused by dealerships that fail to operate according to state code.
By filing an Iowa motor vehicle dealer bond, individuals agree not to commit prohibited acts, such as:
- Using false or misleading advertising
- Destroying a VIN
- Failing to provide a correct certificate of title
- Lending a registration card, plate, or permit to an authorized person
If a dealership commits a prohibited act, the surety company will pay valid claims up to the full $75,000 bond amount, which the dealer must reimburse.
Who Needs an Auto Dealer Bond?
The Iowa Department of Transportation requires any person who sells more than three motor vehicles per year to file a $75,000 surety bond.
Note: This bond is required for motor vehicle dealer licensing. If you're trying to register a vehicle with a missing title, you need a separate Iowa certificate of title bond.
How Much Do Vehicle Dealer Bonds Cost in Iowa?
The $75,000 Iowa motor vehicle dealer bond costs start at $375 for the one-year term. Exact rates may vary from 0.5% to 10% based on a soft credit check. Apply now to get your free quote!
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Do I Get a Motor Vehicle Dealer Bond in Iowa?
You can apply for your free quote online 24/7. You'll need to provide the following information:
- Dealer or dealership name
- Physical dealer or dealership location address
- Dealer license number, if available
- SSN for a soft credit preview
We’ll provide your no-obligation quote invoice within one business day or less. Once you've paid, you'll get your official dealer bond form via email.
Can I Get Bonded With Bad Credit?
Bad credit may impact your premium rate, but it doesn’t always disqualify you from getting a bond. We work with a variety of markets to approve 99% of applicants.
How Do I Renew My Bond?
Iowa dealer bonds expire after one year. We’ll send reminders in advance. Just pay your renewal invoice to extend your bond for another year.
Can I Make Changes to My Bond?
If the Iowa DOT requires your surety bond documentation to be updated for any reason, email [email protected] to explain the needed change.
The most common changes for these bonds include updating the dealer or dealership's name or city.
How to Get a Motor Vehicle Dealer in Iowa
The Iowa Department of Transportation enforces licensing requirements for auto dealers in the state. Complete the following steps to apply for your Iowa auto dealer license.
- Submit an application form.
- Pay the required fees.
- Submit a Manufacturer's Certification of Compliance (new franchises only).
- Establish a place of business.
- Contact the Bureau of Investigation & Identity Protection to request an onsite inspection.
- Purchase surety bond or other financial liability coverage.
- Complete an 8-hour pre-licensing course managed by the Iowa Independent Automobile Dealer Association (used motor vehicle dealers only).
Submit all application documentation to the address below.
Vehicle Central Programs
Iowa Department of Transportation
P.O. Box 9278
Des Moines, Iowa 50306-9278
For more information, review the Iowa Department of Transportation: Motor Vehicle Dealer's License to Sell webpage.
*Note: If you plan to lease or recycle vehicles, you'll need a separate license.
