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Utah Motor Vehicle Dealer Bond

How much does an auto dealer or body shop bond cost in Utah?

Motor vehicle dealers, special equipment dealers, crushers and body shop professionals in Utah must post surety bonds in varying amounts prior to conducting business within the state. Applicants should verify their required bond amount with the state prior to bonding.

Because these bonds are subject to underwriting consideration, the price you’ll pay for your Utah surety bond depends not only on your required bond amount but also on a review of your personal credit report. However, highly qualified applicants are typically approved for 1-3% of the total bond amount.

Bond Type Bond Amount Cost*
$75,000 Motor Vehicle Dealer Bond Motor Vehicle Dealer or Large Trailer Dealer Bond $75,000 Starts at $750 Apply Now
$20,000 Motor Vehicle Dealer Bond Body Shop License Bond $20,000 Starts at $200 Apply Now
$10,000 Motor Vehicle Dealer Bond Motorcycle and Small Trailer Dealer / Crusher Bond $10,000 Starts at $100 Apply Now
*The bond premium rate quotes provided to you through this website are for pricing comparisons and quotation estimate purposes only. The bond rate quotes provided are based on general assumptions that may or may not be applicable to you and are subject to change at any time. These rate quotes do not constitute an offer of insurance, nor is any contract, agreement, or bond coverage implied, formed or bound by the provision of rate quotes. Bondability, final bond premium rate quotes and an offer of insurance, if any, will be determined by the insurance company providing your bond. You must contact us directly to obtain a quote for binding purposes.

Why do I need this bond?

By posting a Utah motor vehicle dealer, special equipment dealer, crusher or body shop surety bond, principals (dealers, crushers or body shop professionals) pledge to observe and comply with all requirements and provisions of the Motor Vehicle Business Regulation Act as provided by Chapter 3, Title 41 of the Utah Code Annotated. Specifically, this bond ensures that principals refrain from the following while conducting business:

  • fraud
  • fraudulent representation
  • violating subsection 41-3-301(1), which requires a dealer to submit or deliver a certificate of title or manufacturer’s certificate of origin
  • violating subsection 41-3-402(1), which requires payoff of liens on motor vehicles traded in

These bonds protect any consumer who is harmed by the principal’s unlawful and unethical business practices from financial loss up to the full bond amount. The principal must reimburse the surety for any damages paid out.

What’s the fine print?

Utah motor vehicle dealer, special equipment dealer, crusher or body shop bonds remain in full force and effect until canceled or violated. The surety can cancel the bond by giving written notice of withdrawal to both the principal and the Motor Vehicle Enforcement Division Administrator. Cancellation becomes effective 60 days after the administrator receives the notice.

Applicants must indicate what license type they’re applying for (auto dealer, special equipment dealer, crusher or body shop). If applying for a motor vehicle dealer license, applicants must specify if they plan to sell new vehicles, used vehicles, new motorcycles, used motorcycles, trailers, etc. Applicants must also indicate the type of organizational structure of the business.

How to become a motor vehicle dealer in Utah

Prospective auto dealers in Utah must obtain a license issued by the Division. To qualify for a license, applicants must:

  • fill out the application for dealer license
  • complete a standard FBI Fingerprint Card and Fingerprint Waiver for each owner, corporate officer or member
  • include a passport-type photo of each member
  • post a surety bond
  • supply a photo of the dealership location that shows the sign
  • secure a sales tax number issued to the dealership by the Utah State Tax Commission
  • attend an 8-hour training seminar
  • include a copy of franchise agreements (if applicable)

Additional Resources

Bond of Motor Vehicle Dealer, Special Equipment Dealer, Crusher or Body Shop form

Utah State Legislature Title 41 Motor Vehicles Chapter 3 Motor Vehicle Business Regulation Act

Utah State Legislature Title 41 Chapter 3 Section 201: Licensing

Utah State Tax Commission Requirements for Obtaining a Motor Vehicle Dealer License in Utah

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