North Carolina Auto Dealer Bond Overview
- Purpose: To protect dealership consumers from financial harm
- Who Needs It: All motor vehicle dealers licensed in North Carolina
- Regulating Body: The North Carolina Division of Motor Vehicles
- Required Amount: $50,000 for original dealership, $25,000 for additional locations
- Premium Rates: Start at $125 and $300, respectively
What Is a North Carolina Motor Vehicle Dealer Bond?
A North Carolina vehicle dealer bond is a financial guarantee that dealers will operate legally and ethically. It protects clients and the state from loss if a dealer causes financial harm.
Bond Coverage Requirements
All new and used car dealers in North Carolina need to file a $50,000 bond for their first location and a $25,000 bond for every other location.
North Carolina General Statute § 20-288 also requires the following motor vehicle professionals to file the same bond form:
- Motor vehicle manufacturer
- Motor vehicle wholesaler
- Factory branch
- Distributor
- Distributor branch
If you’re registering a vehicle with a missing title, you’ll need a North Carolina certificate of title indemnity bond instead.
How Much Do Dealer Bonds Cost in North Carolina?
North Carolina motor vehicle dealer bond costs vary depending on how many dealership locations you operate.
- The $50,000 original location dealer bond starts at $300.
- The $25,000 bond for additional locations starts at $125.
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!
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does the Bond Work?
When you purchase a bond, you become the “bond principal" and enter a legally-binding financial contract with two other parties.
- Principal: The new or used dealership owner
- Obligee: The North Carolina Division of Motor Vehicles
- Surety: The issuing surety provider
By filing this bond, you agree to follow the dealership requirements outlined in North Carolina General Statutes Chapter 20. If you or your employees fail to do so, the bond protects the state and clients. Your 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.
How Do I Get a Motor Vehicle Dealer Bond in North Carolina?
You can apply for your free new or used auto dealer bond quote online 24/7. Simply select which bond amount you need and provide the following information:
- Dealer/dealership name
- Dealership business address
- Type of vehicles sold (new or used)
- Total number of dealerships you operate
- Dealer license number, if available
We’ll follow up with your free quote in one business day or less. You can complete the purchase online, then we’ll email the official bond form right away.
How Do I File My Bond?
You can attach the original, signed bond form with your application packet when you submit to the Dealer Section.
Can I Get Bonded With Bad Credit?
Having a lower personal credit score may impact your premium rate, but it doesn’t always disqualify you. We work with a variety of markets to approve 99% of applicants. Learn more about our bad credit bonding options here.
How Do I Renew My Bond?
You’ll need to renew your dealer bond each year. We’ll provide helpful reminders before your bond expires. All you need to do is pay the renewal invoices and your bond will stay active for another year.
Can I Make Changes to My Form?
If the state requires your surety bond to be updated for any reason, contact your surety provider. The most common changes for these bonds include the car dealership's name or address.
If you bought your bond from us, email [email protected] outlining the change request.
How to Get a Vehicle Dealer License in North Carolina
Learn how to get a North Carolina motor vehicle dealer license by reviewing our comprehensive guide.
You must complete and submit the following documents to the DMV to apply 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 for fees
Mail everything to this address:
Division of Motor Vehicles
Vehicle Services - Dealer Unit
3129 Mail Service Center
Raleigh, NC 27699
You’ll also need to pass an inspection and meet these requirements to receive your business license:
- 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)
