Utah Motor Vehicle Business Bond Overview
- Purpose: To guarantee body shops and dealerships follow all state laws and regulations
- Who Needs It: All body shop owners, crushers and motor vehicle dealers in Utah
- Regulating Body: The Utah Motor Vehicle Enforcement Division
- Bond Amount: $10,000–$75,000, based on dealership or license type
- Premium Price: 0.75–10% of the bond amount, credit-based
What Is a Utah Motor Vehicle Dealer, Crusher or Body Shop Bond?
A Utah motor vehicle dealer, crusher or body shop bond protects the state and customers. It offers financial security to repay potential damages resulting from fraud or other dealer noncompliance.
Bond Coverage Requirements for Utah Vehicle Dealers
The bond amount required by the state varies based on the type of dealership or motor vehicle business license you hold.
| License Type | Required Bond Amount |
|---|---|
| Motorcycle and Small Trailer Dealers OR Crushers | $10,000 Bond |
| Body Shop Owners | $20,000 Bond |
| New or Used Motor Vehicle or Large Trailer Dealers; Special Equipment Dealer | $75.000 |
How Much Do Utah Vehicle Dealer Bonds Cost in Utah?
The $75,000 motor vehicle dealer bond premium starts at $750 for qualified applicants. Rates are typically 1–10% based on personal credit score. Apply now.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does the Surety Bond Work?
A Utah motor vehicle business surety bond creates a financial contract between three parties.
| Bond Party | Description |
|---|---|
| 1) Principal | The motor vehicle licensee filing the bond |
| 2) Obligee | The Utah Motor Vehicle Enforcement Division |
| 3) Surety | The issuing surety provider |
The bond form requires you to repay any financial losses that occur as a result of fraud, misrepresentation or any other misconduct.
How Do I Get a Motor Vehicle Dealer, Crusher or Body Shop Bond in Utah?
You can apply for your bond online 24/7 through our safe and secure portal. Just enter your information and you’ll get your quote within one business day or less.
Pay the invoice at your convenience. We’ll email you the official bond form to file with the BMV. You’ll need to sign it with a notary before filing.
Tip: Make sure the bond type matches your BSI license type.
Can I Get Bonded With Bad Credit?
Having lower personal credit as a vehicle dealer may impact your premium rate, but it doesn’t always disqualify you from getting a bond. We work with a variety of markets to approve 99% of applicants.
How Do I Renew My Bond?
You’ll need to renew your dealer bond each year. We’ll provide helpful reminders before your bond expires. All you need to do is pay the renewal invoices and your bond will stay active for another year.
How Do I Edit My Bond Form?
You cannot edit your bond form yourself. If the state requires your surety bond to be updated for any reason, contact your surety provider. The most common changes for these bonds include the car dealership's name or address.
If you bought your bond from us, email [email protected] outlining the change request.
How to Get a Dealer LIcense in Utah
Follow these steps to apply for your Utah auto dealer license:
- Fill out the Application for Dealer License
- Complete a FBI Fingerprint Card and
- a Fingerprint Waiver (TC-465) for each owner, corporate officer or member.
- Attach a 2x2 photograph of each owner, officer or member.
- Purchase surety bond and sign it in front of a notary.
- Attach a photo of the dealership location that clearly shows the permanent business sign.
- Apply for a sales tax number with the Utah State Tax Commission.
- Attend an 8-hour online or in-person training seminar (each owner, member and officer)
- Include a copy of the franchise agreement, if applicable
- Order dealer plates using from TC-301
For more information on our motor vehicle license types, visit the MVED website.
