Alaska Auto Dealer Bond

New or used motor vehicles dealers, as well as buyer’s agents in Alaska, are required to obtain a bond as part of their licensing application. They will need to submit an original, notarized surety bond to the DMV. The bond must be in force at all times while you conduct your business in Alaska.

The bond amount effective October 1, 2021 will be $100,000 for new and used vehicles dealers and $25,000 for dealers, planning on selling only motorcycles. Note that boat dealers are not required to be bonded.

Obligee Information:

State of Alaska
Division of Motor Vehicles
1300 W Benson Boulevard, STE 300
Anchorage, Alaska 99503-3696
Telephone: (907) 269-3755

Effective October 1, 2021, New and Used motor vehicles dealers need to post a $100,000 bond. If you are looking to sell only motorcycles, you need a $25,000 bond. These amounts, however, are not what dealers are required to pay in order to get bonded.

The premiums to be paid once every two years are a fraction of the whole amount, a percentage usually between 1% and 3%. The final price of your bond depends on a number of factors, your personal credit score being the most important one. Here’s an example of how to roughly estimate your bonding cost, based on your credit score.

With Lance Surety Bonds even clients who have a bad or no credit score can get an bonded. Our Bad Credit Program is designed to help dealers with problematic financial backgrounds get the bond they need.

The premium amount will be in the range of 5%-10%. The rates are slightly raised to compensate for the increased bonding risk when it comes to clients with low credit. However, as Lance Surety Bonds works with a number of established A-rated, T-listed surety companies, your best quote and top price are still guaranteed.

Simply use our online application to submit your request and we will contact you back with your free quote within minutes.

If you have further questions on the bonding process, you can call our surety bonds experts at (877) 514-5146. They are well-acquainted with the Alaska bonding requirements and they’re here to assist you with any difficulties you might encounter.

Want to know more about the dealer bonds? Visit our “How to Get Bonded” page to learn more information on the process of obtaining an auto dealer bond.

The Alaska auto dealer license is valid for two years after registered. Upon expiry of your license, you are required to renew your auto dealer bond as well. So you must renew your bond every two years, for as long as your business is operating.

Do your best to avoid claims as they are not only quite costly but will also affect your future credibility. As the bond is designed to protect your customers and the state, any fraudulent activity you might engage in could lead to a claim filed against you.

If the claim is valid, you may be ordered to pay up to $100,000 in compensation. If a dispute takes place, usually it’s easiest and cheapest to look for a settlement outside of court.