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North Carolina Motor Vehicle Dealer Bond

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How much will my North Carolina auto dealer bond cost?

The cost of a surety bond for a car dealer is subject to underwriting and depends on a review of his or her qualifications. Highly qualified applicants are typically approved for just 1-3% of their bond amount. For example, a dealer with excellent credit could pay as little as $500 for a $50,000 dealership surety bond.

Auto dealers in North Carolina must post an additional $25,000 bond for each subsequent business location.

Give us a call at 1 (800) 308-4358 or fill out an online bond request form to get started!

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

Fill out an online bond request form now to connect with our team of experts. We’ll work hard to get you the bond you need quickly, easily and accurately.

Why do I need a North Carolina motor vehicle dealer bond

By posting this surety bond, principals (vehicle dealers) guarantee that they will comply with not only all local, state, and federal laws but also tax and judgment guidelines pertaining to North Carolina auto dealers. If the dealer or any of his or her employees commit fraud or other unlawful or unethical acts while on the job, the surety bond will protect all harmed parties from financial loss up to the full penal sum of the bond.

Our bond experts are here to answer any questions you have about motor vehicle dealer bonds in North Carolina. Simply submit a bond request to connect with a surety specialist today!

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

How long does a motor vehicle dealer bond last?

North Carolina auto dealer bonds cannot be canceled by the surety unless the dealer ceases business operations or their business license is suspended or revoked, the dealer fails to pay their renewal bond premium, or the dealer or an employee is found to have misrepresented or failed to disclose important information when obtaining or renewing the surety bond

If the surety cancels the bond for the reasons listed above, or it decides not to renew the bond at the end of the term, the surety is responsible for providing the Commissioner of Motor Vehicles with written notice at least 30 days prior to cancellation or nonrenewal.

The applicant must indicate on the bond form if he or she is a new or used car dealer as well as how many secondary locations he or she operates. An additional $25,000 will be added to the total required bond amount for each subsequent secondary location.

How to become a car dealer in North Carolina

It is illegal for a person to act as a motor vehicle dealer in the state of North Carolina without being legally licensed to do so. Prospective dealers must obtain a license issued by the Department by meeting the following requirements:

  • Submit a completed Application for New Dealer License or Changes to Existing License
  • Complete a record of inspection to prove the applicant’s dealership meets all of North Carolina’s business location requirements
  • Purchase a $50,000 surety bond for the first dealership location and $25,000 for each additional dealership location
  • Submit the 1st page of the corporate charter received from the North Carolina Department of State
  • Submit the policy number for the required comprehensive liability insurance to cover the dealer license plates
  • If operating under a name other than what appears on the dealer license certificate, submit evidence the applicant filed an assumed name with the Register of Deeds in the county where your business is located
  • Submit proof of a completed dealer education course
  • Pay a $90 dealer license fee, $36 per plate for the first 5 plates, and $18 per plate after the first 5

The completed application with the accompanying documentation must be sent to the North Carolina Department of Transportation at the following address:

Division of Motor Vehicles
License and Theft Bureau - Dealer Unit
3129 Mail Service Center
Raleigh, NC 27699

Ready to get started?

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