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Auto Dealer Bonds

Complete Guide to Bonding a Car Dealership

  • Experts in bonding Vehicle Dealers
  • Lowest rates in all 50 states!
  • Get approved in just minutes!
  • Bad credit? No problem!
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for an Auto Dealer Bond

Lance Surety writes more Auto Dealer Bonds than any other type of bond, so our staff is experienced with each state’s specific requirements. Due to strong relationships with many top bonding companies, we offer exclusive programs to dealers throughout the nation at prices that cannot be matched. Quoting and issuing bonds directly out of our office helps make Lance Surety the fastest way for a dealer to get bonded. Our low prices combined with our outstanding customer service will ensure you a hassle-free bonding experience!

Questions about Auto Dealer Bonds

How does an auto dealer become licensed and bonded?

Dealer license and bond requirements are established by the obligee, which is usually a state's Department of Motor Vehicles (DMV). The first thing a new applicant should do is contact their state's DMV to gather information about the state's current licensing requirements. Most states provide detailed checklists on their websites designed to simplify the process.

For learn more about dealer bonds in each state, select a state from the interactive US Map above. Our AUTO DEALER BONDS BY STATE guide allows users to view MVD bonding requirements for all 50 states, and provides other useful information such as bond amounts and obligee information.

How do I get my dealer bond?

First apply on our website for a free quote. After your application is approved, your bond agent will let you know how much your bond premium will cost and give you a formal agreement with a bonding company. Once you pay your premium and sign the contract, you will receive your bond.

To learn more about the bonding process, view our page on How To Get Bonded.

How much does an auto dealer bond cost?

Surety Bond Costs are based almost solely on the credit profile of the business owners. In most cases, applicants pay annual premium, which is a percentage of the bond amount. Dealers with excellent personal credit typically pay between 1 to 3% of the bond amount. However, customers with damaged are usually required to pay more. Bad credit programs range between 5 to 15% of the bond amount.

If I have bad credit, how can I lower my rate?

While our agency offers instant online quotes based solely on owner personal credit, it is possible to lower your bond rate by providing additional information. For example, if you have strong liquid assets and can provide cash verification, that could be used to strengthen your application. Strong business and personal financial statements can also be considered in determining your rate.

Can I use my dealer bond for multiple states?

No. Each state has their own motor vehicle dealer bond requirements. If you own dealerships in multiple states, you'll be required to be both licensed and bonded in each state with which you are operating in. Be sure to check with the obligee in each state to ensure you are operating in compliance with their respective auto dealer regulations, or contact our agency with any questionss.

How do I renew my car dealer bond?

If you become bonded with Lance Surety, you will be notified about your bond renewal up to 3 months prior to the bond's expiration date. We will provide you with the renewal invoice, which includes your renewal premium along with the payment due date. Our staff contacts all customers via US Mail, fax, email and follow up phone calls to make sure you are well aware of the pending due date for payment. As long as you pay your renewal premium by the due date, your bond will be renewed by the surety for another term.

What is a dealer bond rider?

Bond riders are simply changes to the original bond. They may include a company name change, business address change or an adjustment to the term dates. If after submitting the original bond to the obligee you are notified that a rider is required, contact your agent to have one processed immediately.

How are bond claims handled for auto dealers?

Remember, surety bonds are not insurance, but instead are more similar to a line of credit. While insurance claims are commonplace and even expected, you must take every action possible to avoid claims against your surety bond. A bond claim paid out by the surety will make it difficult for you to become bonded again in the future. Furthermore, as a bonded principal you will be required to reimburse the surety in the event that a claim is paid out. If you become aware of a possible claim, take action to resolve the situation and contact the surety's claims department for assistance.

Complete list of Auto Dealer Bonds requirements:

State

Alabama

Bond of Automotive Dismantler & Parts Recycler Bond

Alabama Department of Revenue

Bond of Designated Agent

Alabama Department of Revenue

Manufactured Housing Commission (AMHC) License/Permit Bond

Alabama Manufactured Housing Commission

New Motor Vehicle Dealer Bond

Alabama Department of Revenue, Sales, Use & Business Tax Division

Used Motor Vehicle Dealer, Reconditioner, Rebuilder, or Wholesaler Bond

Alabama Department of Revenue

Alaska

Motor Vehicle Dealer's/Buyer's Agent Bond

Alaska Division of Motor Vehicles

Arizona

Vehicle Dealer Bond

Dealer Licensing Unit, Motor Vehicle Division

Manufactured Home Dealer License Bond

Department of Fire, Building and Life Safety

Arkansas

New Motor Vehicle Dealer Bond

Arkansas Motor Vehicle Commission

Used Motor Vehicle Dealer Bond

Arkansas State Police, Special Services Section

California

Dealer Surety Bond (Retail)

State of California, Department of Motor Vehicles

Surety Bond of Wholesale-Only Dealer

State of California, Department of Motor Vehicles

Commercial Requester Account Bond

State of California, Department of Motor Vehicles

Registration Service Surety Bond

State of California, Department of Motor Vehicles

Vehicle Verifier Surety Bond

State of California, Department of Motor Vehicles

Business Partner Automation Surety Bond

Registration Operations Division

Surety Bond of Motorcycle or All-Terrain Vehicle Dealer

State of California, Department of Motor Vehicles

Colorado

Bond of Motor Vehicle Buyer Agent

Department of Revenue, Auto Industry Division

Bond of Motor Vehicle Dealer

Department of Revenue, Auto Industry Division

Bond of Used Motor Vehicle Dealer or Wholesaler

Department of Revenue, Auto Industry Division

Connecticut

Registration Issuance Bond for Motor Vehicle Dealer

Department of Motor Vehicles, Dealers and Repairers Division

Motor Vehicle Dealer Bond

Department of Motor Vehicles, Dealers and Repairers Division

District Of Columbia

Motor Vehicle Dealer Bond

Department of Consumer & Regulatory Affairs

Repair Dealer Bond

Department of Consumer & Regulatory Affairs

Florida

Franchise Motor Vehicle Dealer Bond

State of Florida

Mobile Home Dealer Bond

Department of Highway Safety & Motor Vehicles

Motor Vehicle Dealer Bond

Department of Highway and Motor Vehicles - Division of Motor Vehicles

Recreational Vehicle Dealer Bond

Department of Highway and Motor Vehicles - Division of Motor Vehicles

Georgia

Used Motor Vehicle & Parts Dealer Bond

State Board of Registration - Used Motor Vehicle

Hawaii

Motor Vehicle Dealer Bond

Motor Vehicle Industry Board - Department of Commerce and Consumer Affairs - PVL Licensing Branch

Idaho

Vehicle or Vessel Dealer Bond

Transportation Department

Illinois

Designated Agent Bond

Secretary of State - Vehicle Services Department

Indiana

Auto & Mobile Home Dealers (Used Only, No New) Bond Bond

State of Indiana Dealer Division

Vehicle Merchandising Bond

Indiana Secretary of State Dealer Division

Vehicle Merchandising Certificate Bond Bond

Indiana Secretary of State Dealer Division

Iowa

Motor Vehicle Dealer Bond

Department of Transportation

Kansas

Motor Vehicle Dealer Bond

Department of Revenue - Division of Vehicles - Dealer Licensing Bureau

Kentucky

Motor Vehicle Dealer Bond

Motor Vehicle Commission

Louisiana

Motor Vehicle Dealer Bond

Recreational and Used Motor Vehicle Commission

Maine

Motor Vehicle Dealer Bond

Bureau of Motor Vehicles - Dealer and Agent Services

Maryland

Boat Dealer Bond

Dept of Natural Resources, Licensing & Registration

Vehicle or Trailer Dealer Bond

Motor Vehicle Administration

Massachusetts

Car Dealer Bond

Each City in MA

Used Car Dealer Bond

Each City in MA

Michigan

Motor Vehicle Dealer Bond

Department of State

Uniform Vehicle Dealer Bond

Department of State

Minnesota

Manufactured Home Dealer Bond

Minnesota Department of Labor and Industry

Motor Vehicle Dealer Bond

Department of Public Safety - Driver and Vehicle Services

Mississippi

Designated Agent Bond

Department of Revenue

New Motor Vehicle Dealer Bond

Motor Vehicle Commission

Missouri

Motor Vehicle Dealer Bond

Motor Vehicle Bureau - Dealer Licensing Section

Montana

Motor Vehicle Dealer Bond

Title and Registration Bureau

Nebraska

25K Motor Vehicle Dealer Bond

Motor Vehicle Industry Licensing Board

50K Motor Vehicle Dealer Bond

Motor Vehicle Industry Licensing Board

Nevada

Motor Vehicle Dealer Bond

Occupational and Business Licensing

New Hampshire

Motor Vehicle Dealer Bond

Division of Motor Vehicles - Dealer Licensing Bureau

New Jersey

Motor Vehicle Dealer Bond

Division of Motor Vehicles - Dealer Licensing Bureau

New Mexico

Vehicle Dealer or Auto Recycler Bond

Motor Vehicle Division

New York

Motor Vehicle Dealer Bond

Department of Motor Vehicles

North Carolina

Manufactured Housing Dealers Bond

Dept of Insurance Division of Motor Vehicle

Motor Vehicle Dealer Bond

Division of Motor Vehicles - License & Theft Bureau

North Dakota

Mobile Home Dealer Bond

Department of Transportation

Motor Vehicle Dealer Bond

Department of Transportation - Motor Vehicle Division

Oklahoma

Used Motor Vehicle Dealer Bond

Used Motor Vehicle and Parts Commission

Used Trailer, Automobile, Merchandise Salvage or Secondhand Auto Parts and Accessories Dealer Bond

The City of Oklahoma City-Licensing Division

Oregon

Dismantler or Rebuilder of Vehicles Bond

Department of Transportation - Driver and Motor Vehicle Services

Manufactured Structures Dealer Bond Bond

Department of Consumer & Business Services

Motor Vehicle Dealer Bond

Department of Transportation - Driver and Motor Vehicle Services

Motorcycles, Mopeds, Snowmobiles, ATV Bond

Dept of Transportation Driver and Motor Vehicle Se

Pennsylvania

Dealer/Agent/Messenger/Salvor Bond

Department of Transportation - Bureau of Motor Vehicles - Dealer Registration Section

New, New & Used, Auto, & Mobile Home Dealers Bond

Dept of Transportation

PA MVD - Full Agent Bond

DOT Bureau of Motor Vehicles

Rhode Island

Dealer's License Bond

Division of Motor Vehicles - Dealer's License & Regulations Office

South Carolina

Motor Vehicle Dealer Bond

Department of Motor Vehicles - Dealer Licensing & Audit Unit

South Dakota

Vehicle Dealer Bond

Division of Motor Vehicles

Tennessee

Dealer of Manufactured Homes Bond

Motor Vehicle Commissioner

Motor Vehicle Auction Bond

Motor Vehicle Commission

Motor Vehicle Dealer Bond

Motor Vehicle Commission

Texas

Motor Vehicle Dealer Bond

Department of Transportation - Motor Vehicle Division

Utah

Motor Vehicle Dealer, Crusher, Body Shop Bond

Motor Vehicle Enforcement Division

Vermont

Motor Vehicle Dealer Bond

VT DOT - Agency of Transportation

Virginia

Motor Vehicle Dealer Bond

Motor Vehicle Dealer Board

Motorcycle, Trailer or T&M Vehicle Dealer Bond

Department of Motor Vehicles

Washington

Motor Vehicle Dealer Bond

Department of Licensing

Vehicle, Vessel, Vehicle Manufacturer, Bond

Department of Licensing

West Virginia

Motor Vehicle Dealer Bond

Division of Motor Vehicles - Dealer Services

Wisconsin

Motor Vehicle Dealer Bond

Department of Transportation

Wyoming

Motor Vehicle Dealer Bond

Department of Transportation - Motor Vehicle Services - Licensing & Titling