Wholesale Dealer Bond

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How Do I Get Bonded?

What Is a Wholesale Dealer Bond?

In the majority of states, wholesale auto dealers have to undergo a licensing process in order to start their operations. Typically, you have to provide a wholesale dealer bond, which is a type of license bond.

The goal of the wholesale auto dealer bond is to protect the interests of the state and of your customers. It functions as a safety net, guaranteeing your legal compliance. In case you transgress from applicable state laws, harmed parties can seek a financial compensation by bringing a claim against your bond.

This surety bond works similarly to the rest of bonds, including auto dealer bonds. It is a contractual agreement between three entities, with your wholesale auto dealership being the principal. The state licensing authority is the obligee. The third party is the surety, which is the bond provider.

Questions about Wholesale Dealer Bonds

Which states require a wholesale dealer bond?

Wholesale auto dealers need to obtain a surety bond in most states across the country. In some cases, there is a separate requirement for this license type, while in other states, the bond criteria are the same for new, used and wholesale auto dealers.


The Arizona Department of Transportation requires wholesale auto dealers to obtain a $25,000 surety bond.


The California Department of Motor Vehicles imposes a $10,000 surety bond requirement for wholesale dealers in the state.


In Maryland, wholesale dealers have to post a surety bond in an amount between $15,000 and $150,000. The licensing authority is the state Department of Transportation.


The Mississippi Department of Revenue requires wholesale dealers to obtain a $25,000 surety bond.


Obtaining an Oklahoma wholesale dealer license entails posting a $25,000 surety bond.

What is the bond cost?

The bond amounts for obtaining a wholesale dealer license vary between states. The surety bond cost is based on this required bond amount. It represents a small percentage of it, called the bond premium. The common rates are between 1% and 5%.

How exactly is your bond rice formulated? The most important criteria that your surety needs to consider include include your personal credit score, as well as business financials, liquidity and assets, and business experience. The more stable these factors are, the smaller the perceived bonding risk is, which reduces the bond cost.

Surety Bond Cost Based on Credit Score
Surety bond name Surety bond amount Above 700 Between 650-699 Between 600-649 Below 599
California $10,000 $100-$150 $100-$300 $250-$500 $500-$1,000
Maryland $15,000 to $150,000 $112.5-$2,225 to $1,125-$2,250 $150-$450 to $1,500 to $4,500 $375-$750 to $3,750-$7,500 $750-$15,000 to $7,500-$15,000
Arizona and Mississippi $25,000 $187.5-$375 $250-$750 $625-$1,250 $1,250-$2,500

* This table provides a ballpark estimate of potential bond costs. Bond pricing can fluctuate over time due to a number of factors. For exact pricing, please complete an application.

What if I have problematic credit?

With Lance Surety Bonds, it is possible to obtain your wholesale dealer bond even if your finances are not perfect. We operate our Bad Credit Surety Bonds program for applicants struggling with issues like low credit scores, tax liens, bankruptcies, and civil judgements.

The bad credit bonding rates that you can expect are slightly higher because of the increased risk - in the range of 5% and 10%. Due to our excellent partnerships with numerous A-rated, T-listed surety companies, we are still able to get you bonded at the best possible conditions.

How do I get my surety bond?

For further details, you can refer to our extensive How to Get Bonded page. It will provide you with a thorough overview of the bonding process.

Lance Surety Bonds’ experts are here to help with your questions or bond application. You can contact us at (877) 514-5146.

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About Us

Lance Surety Bonds
Lance Surety Bond Associates, Inc. is a Pennsylvania-based surety bond agency that offers bonding at competitive rates in all 50 states. Established in 2010, our company has grown to become one of the top online bond producers in the country. Working exclusively with A-rated and T-listed bonding companies gives us the confidence to offer a 100% money-back guarantee. read more

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What Our Clients Have To Say?

  • Kimberlee Ables
    Quick response times and turn around for issuing bonds. Great customer service and very knowledgeable. We have used Lance Surety multiple times and have never been disappointed. Highly recommend them and Collette!
  • Andrew Poincot
    Long story short, these guys cut through the B.S. and get the job done. Responsiveness, excellent! Communication, excellent! Respect for their industry partners, excellent! John, Collette, Ryan, you're all-stars! Thank you!
  • Margie Martinez
    We decided for Lance Surety Bond's quote for 2 reasons; Price and Customer Service. Our Representative Ryan was just SUPERB!! [...] I highly recommend Lance Surety Bond for all your Bonding needs! I'll definitely come back for all of mine. :-) Thanks Ryan!

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