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Pennsylvania Motor Vehicle Dealer Bond

How much will my Pennsylvania auto dealer bond cost?

Pennsylvania motor vehicle dealer bonds are set in the amount of $20,000. The price you’ll pay will vary based on your personal credit report. Applicants with an excellent credit report can qualify to pay as little as $120 for this bond.

Bad credit? No problem! The experts at SuretyBonds.com have a history of helping applicants with less-than-perfect credit histories get bonded quickly, easily and accurately.

Click here for more information about surety bonds for Pennsylvania card agents, salvors, full agents or messenger services.

Bond Type Bond Amount Cost*
$20,000 Motor Vehicle Dealer Bond $20,000 Starts at $120 GET A QUOTE

If you’re ready to get bonded, call SuretyBonds.com at 1 (800) 308-4358 or fill out our online bond request form. One of our experts will personally contact you to guide you through our simple bonding process. It’s that easy!

Why do I need a motor vehicle dealer bond?

A motor vehicle dealer surety bond is required of any dealership looking to buy or sell vehicles in Pennsylvania. This bond stands as a guarantee that dealerships will abide by all laws governing the auto dealing industry in Pennsylvania and act ethically while on the job. This specific bond also allows claims to be filed by consumers in the event of financial loss as a result of a dealer’s poor business practices.

Our team of surety experts is just a call away and ready to help you get the bond you need. Call 1 (800) 308-4358 or submit a bond request to get started!

Terms of Pennsylvania motor vehicle dealer bonds

Pennsylvania auto dealer surety bonds are required by Pennsylvania Department of Transportation. Car dealer bonds are considered continuously effective until canceled. Sureties must give the obligee (state) at least 60 days’ notice prior to any cancellation.

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How to become an auto dealer in Pennsylvania

To become an auto dealer in Pennsylvania, you can apply online for initial licensure or via mail by completing the application for an auto vehicle dealer license.

Attach the following to your completed application and submit to the Vehicle Board at PO Box 2649, Harrisburg, PA 17105- 2649:

  1. $65 initial licensure fee paid for in a check or money order made payable to the Commonwealth of Pennsylvania
  2. Original photographs of:
    • Complete overall view showing display area and office
    • Inside of office showing telephone, desk and lockable file cabinet
    • Area for display of the vehicles that indicates a clear distinction between display area and parking, other businesses, etc.
    • Dealership’s displayed on a sign on the building or permanently erected in the outdoor display area
    • Sign showing days/hours of operations
  3. A hand-drawn diagram on 8 ½” x 11” paper, indicating the locations of customer parking and dimensions of all buildings, offices and display areas of the dealership and the location of any other businesses or residences located on the premises. The diagram must show the complete property, labeling everything, including doorways, and must be signed and dated by the applicant
  4. A copy of a deed if you own the property or lease agreement showing that the property has been rented for a minimum of 6 months
  5. A copy of a telephone bill or letter from the telephone company verifying installation of a single business landline telephone at the proposed dealership address with the telephone number listed under the dealership’s licensed name
  6. Documentation from your local municipality verifying that the business location has proper zoning
  7. A copy of the Certificate of Occupancy issued by the Department of Labor and Industry or a copy of the letter of compliance or use and occupancy permit from the municipality where the dealership is located
  8. A work history for each owner, partner, officer or member to establish the reputation in business of the applicant for the past 5 years
  9. A completed Salesperson Initial License Application or Salesperson Change of Employer/Reactivation Application for each salesperson.
    • For sole proprietorships, the owner’s dealership license satisfies this requirement
  10. Completed State Police Background Check for for each owner, partner, officer, or member from each state where the individual has resided in the last five years
    • Record checks must be received within 90 days of the application date and must include the social security number and birth date of the individual
  11. Formation documentation - include applicable documentation from the Pennsylvania Corporation Bureau for corporations, sole proprietorships, limited liability companies, and partnerships

Other specific requirements to attach (if applicable):

Manufactured housing dealers: Statement verifying that dealership will provide transportation, installation and repair services or will prepare a list of people or other companies that will do so

Dealers selling new vehicles: A copy of the franchise agreement for the new vehicles to be sold

Once processed and approved, the license will be mailed to the business address.

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Additional Resources

Pennsylvania State Board of Vehicle Manufacturers, Dealers & Salespersons

Pennsylvania Vehicle Manufacturer/Dealer Bond Form

Pennsylvania Department of Transportation Vehicle Dealership Initial License Application

Pennsylvania Vehicle Dealer License Application Forms

Pennsylvania Code Chapter 19: State Board of Vehicle Manufacturers, Dealers & Salespersons

Pennsylvania Board of Vehicles Act