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Iowa Motor Vehicle Dealer Bond

Price Varies / 1 year term


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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
$75,000Motor Vehicle Dealer Bond

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 or fails to pay fees, consumers can make a claim to recover losses. Prohibited acts according to this bond include, but are not limited to:

  • failing to establish a salesroom
  • willfully defrauding retail buyers
  • using fraudulent practices or methods
  • using unfair methods of competition
  • knowingly using any advertising statement that is misleading or untrue
  • knowingly advertising a used motor vehicle 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 sale is complete

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

Please note that this page is for motor 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 canceled. 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:

  • establish a permanent place of business, with a working phone and regular business hours
  • coordinate an inspection of the premises with the Iowa Bureau of Investigation and Identity Protection
  • obtain financial liability coverage
  • complete the eight required hours of educational courses approved by the Division if selling used vehicles
  • provide proof of a sales tax license
  • be at least 18 years of age
  • purchase the required $75,000 surety bond
  • furnish a credit report, as well as a background check
  • submit all required license application forms and pay the necessary fees

Detailed application information can be found here.

Note that if you are leasing or recycling vehicles, you will need to obtain a separate license.

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

Ready to get started?

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