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Wisconsin Motor Vehicle Dealer Bond

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How much does an auto dealer bond cost in Wisconsin?

The Wisconsin Department of Transportation requires motor vehicle dealers, motor vehicle salvage dealers, motor vehicle wholesalers, recreational vehicle dealers, motor vehicle auction dealers and moped dealers to post surety bonds to legally work within the state. These bonds are subject to underwriting, so the price you’ll pay for your bond depends not only on your required bond amount but also on a review of your personal credit report.

Because the price of a Wisconsin Motor Vehicle Dealer bond varies case by case, the best way to determine the cost of your bond is by submitting a bond request to connect with our team of surety experts who will walk you through our fast and easy bonding process and provide you with your free, no-obligation bond quote. SuretyBonds.com offers an exclusive bad credit bonding program through which we approve 99% of applicants for the bonds they need regardless of financial issues.

Bond Type
$5,000Motor Vehicle Dealer BondMoped Dealer, Motorcycle Dealer
$25,000Motor Vehicle Dealer BondMotor Vehicle Salvage Dealer, Motor Vehicle Wholesaler, Motor Vehicle Auction Dealer, Recreational Vehicle Dealer
$50,000Motor Vehicle Dealer BondMotor Vehicle Dealer, Retail Dealer Licensee

Why do I need a motor vehicle bond in Wisconsin?

By posting a Wisconsin vehicle dealer bond, principals (dealers) pledge to comply with the provisions and conditions of Chapter 218 of the Wisconsin Statutes. If the principal violates these terms, the bond protects the state and any person that suffers damages from the principal’s unlawful business practices up to the full penal sum of the bond. The principal must then reimburse the surety for all damages paid out.

Applicants should be sure to indicate the correct license type on the bond form. Licenses covered by this bond include:

  • Motor vehicle dealer
  • Motor vehicle wholesaler
  • Motor vehicle salvage dealer
  • Recreational vehicle dealer
  • Motor vehicle auction dealer
  • Moped dealer

Apply for your free bond quote now!

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

When do motor vehicle surety bonds expire?

Wisconsin vehicle dealer bonds remain in full force and effect through the date listed on the bond form. If the bond is indicated as “continuous,” it will not automatically expire with the dealer’s license, but will continue from year to year as a new and separate obligation for each 12-month period.

The surety can cancel the bond by giving written notice of cancellation to the Department of Transportation 60 days prior to the effective termination date. Notice of termination must also be sent to the principal.

What are the requirements to being a licensed Wisconsin auto dealer?

To become a licensed motor vehicle dealer in Wisconsin, applicants must acquire the specific license type that matches their particular dealership. To obtain a Wisconsin dealer license, applicants must:

  • Be at least 18 years of age
  • Be of good character and not have been convicted of a serious crime directly related to the sale of motor vehicles
  • Own a permanent business location (not a residence) with an office space and have zoning and local permit approval for the location
  • Have a business sign with posted hours
  • At least one licensed salesperson (hat could be you or someone else)
  • Have a sales tax seller permit
  • Have a surety bond or irrevocable letter of credit
  • Have a service department or written agreement with a service facility within 50 miles from the selling dealership location
  • Have a manufacturer’s certificate of appointment (franchise) if selling new vehicles
  • Pay a dealer license fee, dealer plate fee, and fee to the Department of Financial Institutions

How to obtain an auto dealer license in Wisconsin?

After meeting the above requirements, applicants must complete the following documentation:

For more information on obtaining an auto dealer license, check out the Wisconsin DMV Retail Dealer License page.

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