Delaware Auto Dealer Bond

1. Apply for Your Bond Online

We make it easy to get a quote for your new Delaware auto dealer bond. You only need to spend a couple of minutes filling out the online application. We work with numerous bond programs. This allows us to bond 99% of applicants.

Dale recently got in touch with us to buy a bond for his new auto dealership in Dover. He was pleased to get an immediate quote from us after he submitted the online application. Dale took advantage of the online premium payment system and soon saw his bond in his email inbox.

2. Review Your Quote

We take pride in our fast, hassle-free bonding process. Once you submit your application online, you’ll get a no-obligation quote from us immediately. Bond quotes for more complicated situations will be provided within 48 hours.

3. Pay the Bond Premium

After approving your new auto dealer bond quote, the final step is to make your premium payment. With our online payment portal, you can conveniently complete your bond purchase. Then, we will email the bond document to you. If requested, we can also mail the document. 

We have proudly met the bonding needs of Delaware residents for more than 10 years. If you have questions or need assistance with your bond, contact us or call us at (877) 514-5146.

Auto dealer licensing applications are processed by the Delaware Division of Motor Vehicles. The Delaware Department of Finance is the authority for auto dealer bonds. The bond requirement is established under Delaware Code Chapter 218, Section 2, Amend 3005, Title 30.

The required bond amount is $25,000. The obligee is the Delaware Department of finance. The license and bond requirements hold for new and used auto dealers that sell, buy or exchange five or more vehicles in 12 months.

The bond term is 12 months. The dealer’s license may be suspended if the surety bond is canceled or is not renewed before the current bond’s expiration date.

Your Delaware auto dealer bond expires annually. A new bond must be purchased from an authorized surety company in order to maintain your auto dealer license and continue doing business in the state. 

To avoid a license suspension, your renewed surety bond must be in place by the current bond’s expiration date. Our team will contact you prior to the expiration date with renewal instructions.

To file a claim against your Delaware dealership business, the claimant must do so directly with your surety company. Upon receiving the claim, the surety company will investigate the claim to determine if it is valid. The claim will be denied if the surety company cannot substantiate the claim. 

The claimant will be compensated up to the bond’s penal sum if the claim is validated by the surety company. You are then liable to reimburse the surety company for the full amount paid to the claimant.

You can get full details about auto dealer licensing through our Delaware dealer license guide. The following documents must be submitted to the Division of Motor Vehicles in order to apply for a Delaware auto dealer license. The following are required to obtain a dealer license:

• A license application
• A criminal history background check ($52.50 fee)
• Signature authorizations
• Proof of liability insurance
• A Delaware driver’s license issued at least 90 days prior to the application date
• Proof of a working business telephone
• A manufacturer franchise letter
• Zoning approval
• Filed corporate documents, if applicable
• A registered DBA, if applicable
• Entrance permit, if applicable
• Business license receipt
• Signage
• A lot that accommodates at least five vehicles
• A desk and filing cabinet in a business office
• An approved inspection of the business property.
• Dealer business license ($100 fee)
• Dealer plates ($10 per vehicle)

For more information about auto dealer bond requirements, contact:

Delaware Department of Finance
Carvel State Office Building
820 North French Street, 8th Floor
Wilmington, DE 19801
Phone: (302) 577-8987

For more information about auto dealer licensing, contact:

Delaware Division of Motor Vehicles
2101 Mid County Dr.
New Castle, DE 19720
Phone: (302) 326-500