Wisconsin Dealer Bond Overview
- Purpose: To guarantee dealers follow all state regulations and protect their clients
- Who Needs It: Retail vehicle, moped, motorcycle, RV, and auction vehicle dealers in WI
- Regulating Body: The Wisconsin Department of Transportation (DoT) – Dealer Section
- Bond Amount: $50,000 for standard dealers; $5,000 or $25,000 for other license types
- Minimum Price: $500 or 1% of the bond amount
What Is a Wisconsin Motor Vehicle Dealer Bond?
A Wisconsin motor vehicle dealer surety bond is a financial guarantee that licensed dealers will follow laws and regulations.
The bond amount varies depending on the license type, but it's always used to protect any individual who suffers a loss as a result of dealer noncompliance.
Who Needs a Motor Vehicle Dealer Bond?
The Wisconsin DoT requires official dealer licensing for any person who sells even one vehicle.
- Individuals who sell or lease vehicles to the general public must maintain a retail dealer license.
- Individuals who only sell vehicles to other licensed dealers need a separate wholesale dealer license.
There are various dealer license types that need this bond (form MV2511):
- Motor vehicle dealer
- Motor vehicle wholesaler
- Motor vehicle salvage dealer
- Moped dealer
- Recreational vehicle (RV) dealer
- Motor vehicle auction dealer
The specific amount you need will vary based on the license type.
How Much Do Motor Vehicle Dealer Bonds Cost in Wisconsin?
Your bond price will depend on the license type and your personal credit history.
- The $5,000 Motorcycle or Moped Dealer Bond starts at $100.
- The $25,000 Auction, RV, Wholesaler, or Salvage Dealer Bond starts at $150.
- The $50,000 Motor Vehicle or Retail Dealer Bond starts at $175.
The premium covers one full year of bond coverage. Or, you can select a multi-year term and save 25% and time on renewals. Apply now to get your free quote!
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a Wisconsin Auto Dealer Bond Work?
When you file this bond with the state, you enter a contract between three parties. The surety provider is the third party backing your obligation to the DoT.
| Bond Party | Description |
|---|---|
| 1) Principal | The motor vehicle dealer filing the bond |
| 2) Obligee | The Wisconsin Department of Transportation – Dealer Section |
| 3) Surety | The issuing surety provider |
By filing an auto dealer surety bond, you agree to operate your dealership according to Wisconsin Statutes Chapter 218.
If you commit a prohibited act, the issuing surety company will pay valid claims up to the full bond amount, which the licensed dealer must then reimburse.
How Do I Get a Dealer Bond in Wisconsin?
You can apply for your Wisconsin auto dealer bond online 24/7. Select which bond amount you need based on your license type and provide the following information:
- Legal business name (no DBA information)
- Business location address
- License type
- Dealer license number, if available
You’ll get your quote within one business day or less. We’ll email your official auto dealer surety bond after you checkout.
Can I Get Bonded With Bad Credit?
Bad credit 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 Update My Bond Form?
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 Wisconsin
You’ll need to submit the following documents to apply for a Wisconsin dealer license:
- Dealer license application form
- Entity/owner statement
- Business facilities statement
- Service agreement
- Dealer surety bond
- Articles of Incorporation (if applicable)
- Financial statement
- Manufacturer/importer/distributor certification of dealer (new motorcycle and new motor vehicle dealers only)
- Salesperson license application (motorcycle, RV, and retail dealers)
- Buyer's license application (motorcycle and retail dealers)
License applications and supporting documents must be mailed to the following address:
Wisconsin Department of Transportation
Dealer & Agent Section
P.O. Box 7909
Madison, WI 53707-7909
