Oregon Motor Vehicle Dealer or Rebuilder Bond Overview
- Purpose: To ensure motor vehicle dealers and rebuilders uphold state codes.
- Who Needs It: Individuals who sell more than 5 vehicles per year or repair severely damaged cars
- Regulating Body: The Oregon Department of Transportation
- Bond Amount: $10,000 for special vehicle dealers, $50,000 for traditional dealers or rebuilders
- Premium Price: $100 for $10,000 coverage; starting at $500 for $50,000 coverage
What Is an Oregon Motor Vehicle Dealer or Rebuilder Bond?
Oregon motor vehicle dealer (MVD) or rebuilder bonds guarantee compliance to state code. The bond holds dealers and rebuilders responsible for conducting business ethically and lawfully.
Who Needs a Motor Vehicle Dealer or Rebuilder Bond?
The Oregon Department of Transportation — DMV Services & Business Regulation requires motor vehicle dealers and rebuilders to have a surety bond or letter of credit (LOC) as financial collateral.
Licensed dealers and rebuilders need the same bond form, but have different definitions:
- Motor Vehicle Dealer: Anyone who sells more than five new or used vehicles per year
- Rebuilder: An individual or business who repairs severely damaged vehicles to later sell
Is a Letter of Credit or Surety Bond Better?
Surety bonds are often more economical than LOCs in the long run, but there are benefits to both options. Learn more about the key differences and decide which is best for you.
Bond Coverage Requirements for Oregon Vehicle Dealers and Rebuilders
If you sell new, used or recreational vehicles or repaired vehicles you need a $50,000 surety bond.
If you exclusively sell motorcycles, mopeds, Class 1 all terrain vehicles or snowmobiles, you’ll need a $10,000 special motor vehicle dealer bond or letter of credit.
How Much Do MVD/Rebuilder Bonds Cost in Oregon?
You’ll pay a flat rate of just $100 for a $10,000 special motor vehicle dealer bond — buy one instantly today!
On the other hand, $50,000 Oregon motor vehicle dealer/rebuilder bonds are priced based on credit score. Most applicants pay the minimum premium of $500. You can also save up to 25% by selecting a multi-year term. Apply for a quote today!
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a MVD/Rebuilder Bond Work?
When you purchase an Oregon motor vehicle dealer or rebuilder surety bond, you enter a three–party agreement.
| Bond Party | Description |
|---|---|
| 1. Principal | The vehicle dealer or rebuilder |
| 2. Obligee | The Oregon Department of Transportation |
| 3. Surety | The issuing surety provider |
As the principal, you agree to conduct business lawfully. If you break contract terms, the surety will pay out valid claims and you are expected to reimburse the surety later on.
How Do I Get a MVD or Rebuilder Bond in Oregon?
Get your dealer bond by following these five steps:
- Select the appropriate bond amount
- Apply for a free quote
- Pay the premium at checkout
- Get your bond via email
- File your bond with the Department of Transportation
You’ll get a free quote within one business day. After checkout, expect to find your bond form in your email inbox within minutes.
How Do I File My Bond?
While your bond form will be delivered digitally, you need to file your bond by mailing it to the following address with your dealer application:
DMV Business Licensing Unit
1905 Lana Ave NE
Salem, OR 97314
Can I Get Bonded With Bad Credit?
We approve 99% of applicants. However, if you’re concerned about qualifying, read about our Bad Credit and Premium Financing options.
How Do I Renew My Bond?
Oregon motor vehicle dealer or rebuilder bonds expire annually unless you select a multi-year term. While dealer certificates expire every three years, you need to renew your bond each year to uphold license requirements.
To renew your bond, just follow the renewal reminder instructions. You’ll receive periodic email and text reminders starting 90 days before the expiration date.
How Do I Update My Bond Information?
If you need to update information on your bond, contact our Customer Care team:
- [email protected]
- 1(800)308-4358
We’ll issue a bond rider for simple fixes like name and address. Larger updates may require a new bond form.
How to Get an Oregon Dealer or Rebuilder Certificate
You need a dealer certificate to conduct business as a MVD or rebuilder. The application process is the same for both business types.
To get your certificate, complete the following steps:
- Fill out an application form
- Provide plate billing list
- Get a surety bond or LOC in the appropriate amount
- Submit liability insurance certificate
- Complete eight hours of pre-licensing education
- Pay all applicable fees
Mail your application with all required items to the following address:
DMV Business Licensing Unit
1905 Lana Ave NE
Salem, OR 97314
Applications typically take two to three weeks to process and approve. View the Instructions for Becoming a Dealer to learn more.
How Much Does It Cost to Get a Dealer Certificate in Oregon?
Oregon certificates for vehicle dealers or rebuilders cost $1,188. This does not include additional costs for a surety bond, locations, educational courses and more. View the full cost breakdown in the table below.
| Fee Type | Cost |
|---|---|
| Original Certificate | $1,188 |
| Additional Locations | $350 each |
| Additional Plates | $55 each |
| Surety Bond Premium* | $500+ |
| Dealer Education Course* | $120-$200 |
*Note: The surety bond premium reflects our starting rate. Rates vary based on the surety provider. Dealer education course rates also vary by provider.
