Connecticut Auto Dealer Bond

1. Apply for Your Bond Online

Buying your auto dealer bond in Connecticut is a fast, simple process. It begins when you fill out the online application. We proudly qualify more than 99% of our applicants. Our bond experts are available to assist you with setting up your new bond. 

Tricia connected with us recently with plans to open a used car dealership in New Haven. She was pleased with how easy it was to apply for a bond and get a free quote from us. Through our online portal, she paid the premium and got her bond without a hassle.

2. Review Your Quote

Once you submit your auto dealer bond application online, you will get a no-obligation quote from us instantly. However, if your application is more complicated, you will receive a quote in less than 48 hours.

3. Pay the Bond Premium

The last step to set up your auto dealer bond is to review the quote and pay the premium. Online payments are accepted through our website for your convenience. We will email your new bond to you, and we can also send it via mail, if requested. 

We strive to provide a straightforward process for our customers. If you need assistance or have questions about your quote, contact us or call us at (877) 514-5146.

The Connecticut Department of Motor Vehicles is the authority on auto business licensing and bond requirements. The state requires a bond for those involved in new and used vehicle sales, online sales, leasing, auto membership services and auto repairs.

New and used dealers must have a $60,000 bond. Online dealers are required to obtain a $5,000 Registration Issuance Bond, and auto leasing dealers must have a $15,000 bond. A $10,000 bond is needed for auto clubs and limited repair businesses. General repairers must have a $25,000 surety bond.

License and bond requirements are established under Connecticut General Statutes, Section 14-52 and Section 14-15. The obligee is the State of Connecticut. The bond remains in force until it is canceled or unless the principal violates related state and federal regulations.

A Connecticut motor vehicle bond runs continuously until it is canceled or unless the principal violates related state and federal regulations. Written notice must be provided to the Connecticut Department of Motor Vehicles prior to the cancellation date. 

However, you must make annual premium payments to maintain your auto dealer surety bond. We will contact you when the next premium is due with payment instructions.

A claimant in Connecticut must file a claim against your business directly with the surety company. The validity of the claim will be investigated by the surety company. If the claim against your business cannot be substantiated, the claim is denied. 

If the claim against your Connecticut auto dealer business is validated, the claimant will be compensated up to the bond’s penal sum. Your business is then responsible for reimbursing the surety company for the full amount paid on the claim.

Our Connecticut dealer license guide provides comprehensive information about obtaining a dealer license. Your auto dealer license application and supporting documentation is processed by the Connecticut Department of Motor Vehicles. The requirements include:

• Application form
• Surety bond form
• License Inspection Application
• Required signage
• Proof of properly completed forms, including sales forms, invoices, federal odometer statements and others
• Etching of Vehicle Identification Number and Component Parts Marking
• Franchise agreement
• Business entity documents, if applicable
• Dealer Agreement and Standard Provision
• Fees:

For more information, contact:

Connecticut Department of Motor Vehicles
60 State St.
Wethersfield, CT 06161
Phone: (860) 263-5700