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Iowa Motor Vehicle Dealer Bond

How much does a $75,000 auto dealer bond cost in Iowa?

Getting licensed to be an auto dealer in Iowa requires an auto dealer surety bond. These bonds, required by the Iowa Department of Transportation, can be issued at rates as low as $375. To determine which rate you qualify for apply for a free bond quote online today!

Bond Type Bond Amount Cost*
$75,000 Motor Vehicle Dealer Bond $75,000 Starts at $375 GET A QUOTE

The best way to determine your exact surety bond cost is to call 1 (800) 308-4358. You can also contact a surety specialist online to request a free, personalized bond quote.

Why do I need this bond?

This type of surety bond ensures that principals (motor vehicle dealers) will comply with all Iowa statutes that regulate motor vehicle dealers and the state’s auto industry. Under this bond, if a dealer commits fraud, consumers can make a claim to recover losses. Prohibited acts according to this bond include, but are not limited to:

  • failing to have an established salesroom
  • willfully defrauding any retail buyer
  • employing fraudulent devices, methods or practices
  • using unfair methods of competition
  • knowingly advertising any statement of fact which is untrue, misleading or deceptive
  • knowingly advertising a used motor vehicle for sale as a new motor vehicle
  • knowingly giving an incorrect certificate of title or failing to give a certificate of title to a purchaser after a vehicle is sold

For more information on vehicle dealer bonds in Iowa, contact an expert surety specialist online now.

Please note this page is for vehicle dealer licensing. If you have lost or need to obtain a vehicle title, an Iowa certificate of title bond is required.

What’s the fine print?

The dealer number must be listed on the bond form, and the principal’s signature must be witnessed.

Iowa motor vehicle dealer surety bonds are continuous unless otherwise cancelled. If the bond is to be canceled, the surety must provide the Iowa Department of Transportation with at least 30 days written notice.

How to become a motor vehicle dealer in Iowa

It is illegal for a person to act as a motor vehicle dealer in the state of Iowa without being legally licensed to do so. Prospective dealers must obtain a license issued by the Division. Applicants must:

  • pay the required application fees
  • complete all required hours of educational courses approved by the Division
  • provide proof of a sales tax license
  • be at least 18 years of age
  • furnish a credit report as well as a background check
  • submit all required license application forms

Detailed licensing information can be found in the “Additional Resources” section below.

If you’re ready to get your auto dealer license in Iowa, request your free surety bond quote now.

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Get a FREE Motor Vehicle Dealer Bond Quote Today!

Additional Resources

Iowa Motor Vehicle Dealer Sample Surety Bond Form

Iowa Motor Vehicle Dealer License Application

Dealer Licensing in Iowa

Iowa Department of Transportation: Motor Vehicle Dealer Information

Iowa Code 322.7: License of Motor Vehicle Dealer

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