Pennsylvania Motor Vehicle Bonds Overview
- Purpose: To guarantee motor vehicle professionals uphold state laws and regulations
- Who Needs It: Auto dealers, salvors, card agents, messenger services, and manufacturers in Pennsylvania
- Regulating Body: The Pennsylvania Department of Transportation
- Bond Amount: $20,000 for standard dealers, $3,000–$50,000 for other license types
- Premium Price: Varies — $100 for card agents and salvors, $200 for manufacturers and dealers, others are credit-based
What Is a Pennsylvania Auto Dealer Bond?
Pennsylvania auto dealer bonds are financial guarantees that vehicle dealers will follow state board regulations. The Pennsylvania Department of Transportation — Bureau of Motor Vehicles requires dealers and manufacturers to have a $20,000 surety bond to become licensed.
The same bond form is used for other professional motor vehicle licenses — card agents, salvors, full agents and messenger services — just with different coverage requirements.
Pennsylvania Motor Vehicle Bond Coverage Requirements
The bond amount you need depends on the specific motor vehicle license you’re applying for or hold. Below are the coverage requirements:
| License Type | Bond Coverage |
|---|---|
| Card Agent | $3,000 |
| Salvor | $10,000 |
| Auto Dealer | $20,000 |
| Full Agent | $30,000 |
| Messenger Service | $50,000 |
How Much Do Auto Dealer Bonds Cost in Pennsylvania?
You can get a $20,000 auto dealer bond instantly today for just $200. Other Pennsylvania vehicle industry bond prices vary based on the license type and correlating bond coverage.
Some bonds are a flat rate, while others require an application to determine personalized rates. See starting prices in the table below.
Some motor vehicle bonds are available for multi-year terms. You can save up to 25% by selecting a multi-year term.
How Does a Pennsylvania Auto Dealer Bond Work?
When you purchase any motor vehicle bond, you enter a three-party agreement.
| Bond Party | Description |
|---|---|
| 1. Principal | You, the licensed auto dealer |
| 2. Obligee | The Pennsylvania Department of Transportation |
| 3. Surety | The issuing surety provider |
Being bonded means you agree to follow state and industry laws. If the principal breaks contract terms, the surety will pay harmed parties and you must reimburse the surety.
How Do I Get an Auto Dealer Bond in Pennsylvania?
You can buy your Pennsylvania auto dealer bond in minutes. Follow these four quick steps to get your bond:
- Provide personal and business information
- Pay the premium
- Get your bond form in the mail
- File your bond with the Pennsylvania State Board of Vehicle Manufacturers, Dealer and Salespersons
If you need a full agent or messenger services bond, you’ll need to apply for a quote. We’ll provide your personalized quote invoice by email within one business day or less. Then, you’ll receive your physical bond to file with the Board.
How Fast Can I Get My Bond?
All motor vehicle licensees need to file the original, physical bond. We offer next-day, two-day and three-day shipping. Just select your preferred method at checkout!
How Do I File My Bond?
File your bond with the state by mailing it to the following address:
State Board of Vehicle Manufacturers, Dealers, and Salespersons
P.O. Box 2649
Harrisburg, PA 17105- 2649
Can I Get Bonded With Bad Credit?
While auto dealer bonds are offered at a fixed rate for every applicant, other motor vehicle license bonds require a soft credit check.
If you’re worried about qualifying for underwritten bonds like full agent and messenger service bonds, read about our Bad Credit Options.
How Do I Renew My Bond?
Pennsylvania auto dealer bonds and other motor vehicle bonds expire annually. Renewals are simple, just follow the instructions provided in your renewal reminders and pay the invoice.
You’ll start receiving email and text reminders 90 days before the expiration date. If you have any questions, or want to renew over the phone, just call 1(800)308-4358.
How Do I Update My Bond Form?
Simple updates can be changed through a bond rider. Larger updates may require a new bond form to be issued. Just call or email Customer Care and a representative will assist you:
- 1(800)308-4358
- [email protected]
How to Become a Licensed Auto Dealer in Pennsylvania
The Pennsylvania Board of Vehicle Manufacturers, Dealer and Salespersons regulates the licensing process. You’ll apply for your auto dealer license through the Pennsylvania Licensing System (PALS).
Complete the following steps to get your license:
- Sign in or create PALS account
- Complete an application
- Submit a copy of the Certificate of Occupancy issued by the Department of Labor and Industry and a lease/deed
- Provide a recent Criminal History Records Check
- Submit a copy of the franchise agreement; if selling new vehicles
- Provide hand drawn diagrams, work history and zoning documentation
- Pass a facility inspection
- Get a $20,000 surety bond
- Apply for plates
- Pay the $190 application fee
Learn more about How to Get an Auto Dealer License in Pennsylvania with our step-by-step guide. If you have any questions, find more resources on the BMV site.
You can also use the DOS Application Checklist tool to learn more about other motor vehicle licenses. Just select the applicable board or commission and license type to get a specific checklist with instructions.
