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Utah Motor Vehicle Dealer Bond

How much does an auto dealer bond cost in Utah?

The cost of a Utah car dealer bond depends on the bond amount you need for the business as well as a review of your financial history. Highly qualified applicants typically pay as little as 1-3% of the total bond amount. The required bond amounts vary depending on business specifics:

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

Why do motor vehicle dealers need a bond in Utah?

The Utah Motor Vehicle Enforcement Division (MVED) requires auto dealers, special equipment dealers, crushers, and body shop professionals to a post surety bond prior to conducting business within the state.

By posting a Utah motor vehicle dealer, special equipment dealer, crusher, or body shop surety bond, principals (car 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
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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.

Please note this page is for vehicle dealer licensing. If you have lost or need to obtain a vehicle title, a Utah certificate of title bond is required.

Terms of an auto dealer license bond

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. Cancellation becomes effective 60 days after the administrator receives the notice.

Applicants must indicate on the bond application 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 car dealer in Utah

Prospective auto dealers in Utah must obtain a license issued by MVED. To qualify for a license, applicants must complete a Bonded Motor Vehicle Business Application. Along with the application, licensees must do the following:

Review the requirements for obtaining a motor vehicle dealer license in Utah for more specifics.

Applications, bond, photos and fees must be submitted for approval to the Motor Vehicle Enforcement Division, 210 North 1950 West, Salt Lake City, Utah 84134. Make checks or money orders payable to Utah State Tax Commission. Allow five to ten working days after the application is received by MVED for an on-site inspection of the place of business. The license cannot be issued until after this inspection.

Additional Resources

Utah Motor Vehicle Enforcement Division Dealer Licensing Page

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