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Tennessee Motor Vehicle Dealer Bond

Price Varies / 2 year term


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How much does a $50,000 motor vehicle dealer bond cost in Tennessee?

Tennessee motor vehicle dealer bonds are required by the Tennessee Motor Vehicle Commission and require an underwriter's review to determine the premium each applicant will pay. Premiums for highly qualified applicants start at just $263 for the state-required two-year term.

Give us a call at 1 (800) 308-4358 or submit a bond request to get a quote on your Tennessee Motor Vehicle Dealer bond.

Bond Type
$50,000Motor Vehicle Dealer Bond

Ready to get bonded? Let SuretyBonds.com do all of the hard work for you! Simply fill out our online bond request form, and one of our surety professionals will start working on getting you a free bond quote immediately.

Why do I need a Tennessee auto dealer bond?

Tennessee motor vehicle dealer bonds ensure that auto dealers adhere to every rule and regulation defined in Tennessee Code Annotated 55-17-111. Specifically, these bonds protect any person who suffers loss because the dealer fails to pay a retail customer’s prepaid title, registration, or other related fees or taxes. The bond also protects harmed parties if the dealer fails to deliver a valid vehicle certificate of title free and clear of any prior owner’s interests and all liens, except a lien created by or expressly assumed in writing by the buyer of the vehicle with each vehicle sale.

Our surety professionals’ unparalleled bonding know-how ensures that you’ll get the bond you need for the best price possible. Fill out an online bond request today!

Looking for information on getting a bonded title for a vehicle in Tennessee? Visit our vehicle ownership title bond page to find out why these bonds are required, how much they cost, and how to get yours today.

Terms of the Tennessee motor vehicle dealer bond

Tennessee motor vehicle dealer bonds remain valid for two years, must start on the first day of the month and expire on the same date as the principal’s business license. If the surety cancels the bond, at least 60 days’ notice must be given to the state.

New dealers must post 25-month surety bonds, while existing dealers must post 24-month bonds.

How to become a motor vehicle dealer in Tennessee

Step 1: Confirm that your established place of business meets all of the requirements:

  • must be separate from all other buildings and have furniture and a working telephone
  • must have a vehicle display area large enough to fit 15 vehicles
  • meet the sign requirements (per ordinance)
  • have enough space for at least three customer parking spots

Step 2: The business must be inspected by the Tennessee Motor Vehicle Commission

Step 3: Complete the Tennessee Dealer Application Packet

The following documents must be included in a dealer’s application packet:

  • certificate of liability insurance
  • garage sale liability
  • business tax license
  • sales tax identification number
  • personal and/or financial check and disclosure
  • financial statement prepared by a CPA
  • zoning compliance
  • franchise agreement letter from the manufacturer
  • surety bond or letter of credit (original)

Step 4: Pay the license application fee of $400

Ready to get started?

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