Automobile Dealer Bond / Automobile Dealer Surety Bonds
Auto Dealer Bonds are a third party obligation and a credit guarantee. These surety bonds are for motor vehicle dealers or related licenses to authorize a surety bond for damages to any person who suffers a loss due to non-payment of motor vehicle fees, or failure to deliver a valid certificate of title.
You should always contact your local Department of Motor Vehicles to assess the exact type and dollar amount of the bond required from your state.
PLEASE NOTE: This document is provided for informational purposes ONLY and is not intended to serve as legal advice and is no substitute for consulting legal counsel.
Alabama
A $10,000 Automobile Dealer Surety Bond or a net worth statement for $25,000 or more is required. Dismantlers must present a Dealers Bond or show a net worth of no less than $100,000.
Alaska
$10,000 MVD Bond is required; $3,000 Dealer bond for motorcycle dealers.
Arizona
$100,000. Motor Vehicle Dealer Bond is required for licensing for new and used car dealer that has established business; required for each location and $25,000. Motor Vehicle Dealer bond for Wholesaler Licensing. Call your licensing bureau for details
Arkansas
Franchise dealers must post a $25,000 Motor Vehicle Dealer Bond with the Arkansas Motor Vehicle Commission to obtain a license. Used car dealers must post $25,000 MVD Bond with the State Police.
California
$10,000 Wholesaler DMV Bond required / $50,000. Motor Vehicle Dealer Bond New and Used Car Dealership
Colorado
A $30,000 MVD Bond must be posted upon application for license.
Connecticut
Required; $5,000 surety bond for repairers and limited repairers; $50,000 for new and used MVD Bond for vehicle dealers.
Delaware
There are no Automobile Dealer bond requirements for dealers.
District of Columbia
A $10,000 Automobile Dealer bond is required; filed with the Department of Consumer Regulatory Affairs.
Florida
All motor vehicle dealers and mobile home dealers are required to file a $25,000 MVD Bond. An irrevocable letter of credit may be substituted for a motor vehicle dealer’s bond. Recreational vehicle dealers require a $10,000 Dealers bond. For more than 4 additional lots, Mobile Home Dealers require a $50,000 Motor Home Dealers bond, and RV dealers require $20,000 DMV bond.
Georgia
A $35,000 Automobile Dealer bond is required of all vehicle dealers.
Hawaii
Alternative form of securities.
(a) Where an inventory flooring line of credit cannot reasonably be obtained by a dealer, the provide that a bond, for one of the following amounts, be obtained as an alternative form of security:
(1) $200,000 for new motor vehicle dealers selling ten or more vehicle units a month on an annual basis;
(2) $50,000 for new motor vehicle dealers selling less than ten vehicle units per month on an annual basis;
(3) $100,000 for used motor vehicle dealers selling sixty motor vehicle units per month on an annual basis;
(4) $25,000 for a used motor vehicle dealer selling less than a month on an annual basis; and
(5) $10,000 for motorcycle and motor scooter dealers.
Idaho
A $10,000 Motorcycle Dealer bond is required for motorcycle, ATV and snow machine dealers; $20,000 Motor Vehicle Dealer Bond for all others.
Illinois
$20,000 MVD Bond is required for Dealers New & Used
Indiana
MVD Bond is not required.
Iowa
$50,000 Automobile Dealer Bond must be filed with the Department of Transportation.
Kansas
$30,000 DMV Bond is required for new and used dealers.
Kentucky
$15,000 Motor Vehicle Dealer Bond may be required upon the approval from the state.
Louisiana
$20,000 MVD bond for new vehicle dealers; $10,000 MVD bond for used vehicle dealers.
Maine
The Maine Bureau of Motor Vehicles has changed the bond amounts required for
Motor Vehicle Dealer bonds: Motor Vehicle Dealer Bonds are required for all
dealers except light trailer and light boat trailer dealers. Bond amount is
established by the number of vehicles sold by the dealership:
Annual sales 0 to 50 vehicles will now require a $25,000 bond.
Annual sales 51 to 100 vehicles will now require a $50,000 bond.
Annual sales 101 to 150 vehicles will now require a $75,000 bond.
Annual sales 151 to 200 vehicles will now require a $100,000 bond.
Annual sales 201 vehicles and over will now require a $100,000 maximum bond.
Maryland
The Surety bonds are all based upon sales volume; Auto Dealer Bonds are required for all dealers. (Check with the state for specific requirements)
Massachusetts
$25,000 Auto Dealer bonds for ALL Class II dealers. Effective Jan. 1, 2004
Michigan
$10,000 MVD bond is required.
Minnesota
$50,000. Motor Vehicle Dealer bond must be filed by all Auto Dealers; $5,000 Dealer bonds for boat, snowmobile, trailer and motorized bicycle dealers.
Mississippi
A $15,000 Designated Agent’s Surety Bond is required for all licensed dealers. The Dealer bond must be filed with the application for a dealer’s license.
Missouri
$25,000 Corporate Surety Bond.
Montana
Franchised dealers, used car dealers, recreational vehicle dealers, auto auctions, wholesalers and trailer dealers who sell mobile homes, house trailers and commercial trailers are required to post $25,000 Dealers bond. Wholesaler and trailer dealers selling trailers under 6,000 lbs. GVW and motorcycle dealers must post $10,000 Dealers bond.
Nebraska
$25,000 Automobile Dealer bond is required.
Nevada
A $100,000 Motor Vehicle Dealer Bond is required.
New Hampshire
A $10,000 to $20,000 dealer bond. Categories are Bonded and Licensed. Bonded dealers are not issued dealer plates.
New Jersey
A $10,000 MVD bond is required they have a term date of April 1st through March 31st.
New Mexico
A $50,000 corporate Surety Bond is required for auto dealers, salvage dealers, manufacturers, mobile home dealers and motorcycle dealers. A $12,500 bond is required for motorcycle dealers; no bond for boat dealers.
New York
All dealers need a DMV bond in New York.
The DMV bond amount varies depending upon the type of dealer —
dealer ($10,000 or $25,000),
qualified dealer ($50,000) and
new motor vehicle dealer ($50,000).
North Carolina
$50,000 Motor Vehicle Dealer indemnity bond
North Dakota
All motor vehicle dealers are required to maintain a $25,000 Motor Vehicle Dealer Bond with the department. All mobile home trailer and motorcycle dealers must maintain $10,000 Dealers bond.
Ohio
Automobile Dealer bonds are required in certain situations; Call your local DMV 1-800-364-8833 for details.
Oklahoma
$15,000. Used Car Dealer bond is required for used car dealers.
$25,000. Wholesale Dealer bond for wholesale dealers.
$30,000. Manufactured Home Dealer bonds for manufactured home dealers.
Oklahoma
Licensed salesmen are required to maintain a $1,000 Salesperson Dealer bond.
Oregon
$40,000 DMV Bond and is required to be maintained on a three year license.
Effective Sept. 1, 2004 Bond is $40,000.
Pennsylvania
Manufacturer/Dealer: $20,000 DMV bond for each place of business.
Messenger Service: $50,000 DMV bond – Additional $50,000 per branch office
Full Agent: $30,000 DMV bond for each place of business.
Salvor: $10,000 DMV bond for each place of business.
Card Agent: $3,000 DMV bond
Rhode Island
All dealers must post a $15,000 MVD Bond with the Dealers License Commission
South Carolina
A $30,000 Motor Vehicle Dealer bond is required.
South Dakota
A Dealer bond is required, check with your appropriate licensing board for specifics.
Amounts are:
Motorcycle — $5,000 Dealer bond
Trailer Dealer — $10,000 Dealer bond
Mobile/Manufactured Home — $25,000 Manufactured Dealer Bond
Snowmobile — $5,000 Dealer bond
Boat — $20,000 Dealer bond
New and Used Car Dealers — $25,000 Motor Vehicle Dealer bond
Tennessee
$25,000. MVD bond is filed with Motor Vehicle Dealer Commission.
Texas
A $25,000 Motor Vehicle Dealer bond is required for motor vehicle, motorcycle, wholesale and wholesale auction dealers for the licensed period ending with the previous month and is now required for 2 years unless grandfathered in with the TXDOT.
Utah
A $75,000 corporate surety bond for new or used vehicle dealers. A $1,000. corporate surety bond for new or used motorcycle or small trailer.
Vermont
New and used car dealers must provide Dealer bonds based on the number of sales and must have real estate value of not less than $5,000. or more than $15,000. Contact your local office (802) 828-2038
Virginia
$50,000 Automobile Dealer bond for the first three years in business. MVD Bonds are required until dealership has three consecutive years without a claim against the bond or fund.
Washington
Motor Vehicle Dealer bond, Motor Vehicle Wholesaler, Manufactured Home / Trailer Dealer bonds are all required at $30,000.
West Virginia
$10,000 MVD bonds for dealer licensing
*($25.000 MVD bonds required on aa-auto auction and ls-license service)
*bond not required for repo-financial institution, mfg-manufacturer and trs-transporter)
Wisconsin
$50,000. Motor Vehicle Dealer bond (Retail License), $25,000. Dealer bond (Wholesale Dealer), $25,000. MVD bond (Wholesale Auction Dealer), $25,000. Dealer bond (Salvage Dealer), $25,000. Motor Vehicle Dealer bond (Recreational Vehicles), $5,000. Motorcycle bond (Motorcycle Dealer), $5,000. Moped Bond (Moped Dealer).
Wyoming
A $25,000 Auto Dealer Bond is required at the time of application for a license