California Wholesale Dealer Bond

If you sell less than 25 cars per year, you must post a California wholesale dealer bond in the amount of $10,000. This value increases to $50,000 if you sell 25 cars or more. To get bonded, you only have to pay a small percentage of it, referred to as the bond premium.

What factors determine your surety bond cost? The most important ones include personal credit score, business finances, liquidity and assets, and your business’ know-how. Your surety needs to assess the bonding risk on the basis of these criteria. The more stable they are, the smaller your bond price will be. The typical rates for applicants with good credit are between 1% and 3% of the bond amount, so for a $10,000 bond you’ll only have to pay between $100 and $300.

1. Submit Application

To begin the bonding process, just fill out our online application form. 

You’ll be required to provide some more details and documents. Rest assured, we'll be with you at every step, making sure your experience is seamless.

We recently assisted a newly established wholesale dealer in California with their Bond application. Despite their comprehensive knowledge of the wholesale automotive market, they reached out for guidance on the detailed aspects of the bond and its potential effects on their business activities. Recognizing their dedication to excellence and customer service, we offered customized support throughout the application process. By making the requirements more straightforward, we facilitated their navigation through California's regulations with ease, guaranteeing a seamless start-up and establishing their status as a trustworthy wholesale dealer.

2. Get a Bond Quote

Upon receiving your application, our team promptly initiates processing. We diligently seek the optimal bond rate, leveraging our industry expertise. Following this, we provide a complimentary quote, along with expert advice and straightforward instructions to simplify the bonding process for you.

3. Buy Your Bond

Once your bond premium is paid, you are officially bonded. Your bond will be sent to you via email, and if necessary, a paper copy will be mailed.

If you have any questions or encounter any difficulties, our surety bonds experts are here to help you – just call us at (877) 514-5146.

The California Department of Motor Vehicles requires individuals who will work as wholesale-only dealers to file a surety bond when obtaining a wholesale dealer license in order to operate in California according to California Vehicle Code 11710. Once it's done, dispatch it to the California Department of Motor Vehicles (DMV) in line with the dealership license application protocol to adhere to the bonding criterion.

Licensing Operations Division
Occupational Licensing Branch
P.O. Box 932342, MS: L224
Sacramento, CA 94232-3420

Getting bonded is just one of the licensing requirements. Ensure you're familiar with the whole process of obtaining a Wholesale Dealer License in California.