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North Carolina Motor Vehicle Dealer Bond

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How much does a motor vehicle dealer bond cost in North Carolina? 

North Carolina motor vehicle dealer bond costs vary depending on how many dealership locations you operate. 

  • Annual premiums for the $50,000 Original Location Vehicle Dealer Bond start at $250. 
  • Annual premiums for the $25,000 Subsequent Location Vehicle Dealer Bond start at $150.

Your exact vehicle dealer bond premium will be provided after a quick application review. Apply now to get your free, personal car dealer bond quote!

How do you get a North Carolina auto dealer bond? 

You can apply for your free North Carolina auto dealer bond quote online 24/7. Simply select which bond amount you need and provide the following information for Division of Motor Vehicles approval.

  • dealer/dealership name
  • dealership business address
  • type of vehicles sold (new or used)
  • total number of dealerships you operate
  • dealer license number, if available

Once your order is processed, your official North Carolina surety bond documents will be delivered to your email.

How fast can I get a motor vehicle dealer bond?

Our industry-leading technology and responsive customer service team allow us to offer free quotes and deliver your official North Carolina motor vehicle dealer bond faster than any other surety provider. Orders placed by 4 PM CST Monday-Friday are typically processed with same-day emailed auto dealer bond delivery.

If you have questions about the North Carolina motor vehicle dealer bond or your application, call 1 (800) 308-4358 to speak with a friendly surety expert. We're here to guide you through the auto dealer bond process to help you get back to running your business as soon as possible.

Bond Type
$25,000Motor Vehicle Dealer BondSubsequent Location
$50,000Motor Vehicle Dealer BondOriginal Location

What is a North Carolina motor vehicle dealer bond? 

North Carolina General Statute § 20-288 requires individuals to file a $50,000 surety bond before they can get an auto dealer license in the state. Dealers must also file an additional $25,000 bond for each subsequent dealership location. Bond form VS-409 specifically protects any person harmed by fraud, fraudulent representation or other violations by the licensed dealer or their sales representatives. 

Why do you need a surety bond to sell vehicles? 

By filing this North Carolina surety bond, you agree to operate your dealership according to North Carolina General Statutes Chapter 20 Articles 12 and 15. If you or your employees fail to do so, the bond provides financial protection to harmed individuals. Your issuing surety company will pay valid claims up to the full bond amount, which you must then reimburse. 

The North Carolina motor vehicle dealer surety bond is required for professional licensing. If you need to register a vehicle with a missing title, a North Carolina certificate of title indemnity bond is required.

Who regulates licensing for vehicle dealers? 

The North Carolina Department of Transportation Division of Motor Vehicles enforces licensing requirements for auto dealers in the state. If you have questions about the auto dealer surety bond, your required total bond amount, or the status of your auto dealer license, the DMV advises you call Dealer Services at 1 (919) 615-8600.

Who needs a North Carolina auto dealer surety bond? 

North Carolina General Statute § 20-288 requires the following licensed professionals file an auto dealer surety bond with the DMV. 

  • motor vehicle dealer
  • motor vehicle manufacturer
  • motor vehicle wholesaler
  • factory branch
  • distributor
  • distributor branch

How do I update or change my motor vehicle dealer bond form? 

If the Division of Motor Vehicles requires your bond form to be updated for any reason, contact your surety provider. If you purchased your auto dealer bond from, email [email protected] to explain the needed change. 

The most common changes for this bond include:

  • dealer/dealership name
  • dealership business address

How do I renew my vehicle dealer bond? 

You should renew your North Carolina motor vehicle dealer bond before its current 1-year term expires. Once you pay your renewal invoice, renewal instructions will be emailed to you to keep your bond active for your next license term. 

How do dealers apply for a motor vehicle dealer license in North Carolina? 

Learn how to get a North Carolina motor vehicle dealer license by reviewing our comprehensive guide.

It is illegal for a person to act as a motor vehicle dealer in North Carolina without being legally licensed to do so. The following documents must be completed and submitted to the DMV at the below address before applying for a dealer's license. 

  • inspector's report
  • notarized dealer surety bond
  • 12-hour continuing education certificate (used vehicle dealers only)
  • zoning letter
  • certificate of garage liability insurance
  • proof of articles of incorporation filed with the Secretary of State (corporations only)
  • copy of franchise agreement (franchise dealers only)
  • dealer license application
  • payment of fees

Division of Motor Vehicles
Vehicle Services - Dealer Unit
3129 Mail Service Center 
Raleigh, NC 27699

Additionally, the following criteria must be met by auto dealer license applicants before a license will be issued. 

  • established sales room in compliance with zoning ordinances/regulations (retail dealers only) 
  • established office in compliance with zoning ordinances/regulations (wholesale dealers only)
  • sign with business name
  • assumed name filed with the Register of Deeds (if applicable)

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