Motor Vehicle Dealer Surety Bonds

Open the lot. We will handle the dealer bond.

Every state requires a motor vehicle dealer bond before it will issue a dealer license. BF Bond writes them on the exact DMV form your state uses, for franchise dealers, independent used car lots, and wholesalers alike.

Apply for a Dealer Bond
Call (800) 921-1008
  • Serving dealers since 1949
  • Every state DMV form
  • A-rated carrier partners
The Basics

What is a motor vehicle dealer bond?

A motor vehicle dealer bond is a license and permit surety bond required by your state DMV or motor vehicle commission as a condition of holding a dealer license. It guarantees that you will operate in compliance with the laws governing vehicle sales: delivering clear title, disclosing odometer readings and material history accurately, paying sales tax and registration fees you collect, and honoring the terms of the deals you write.

The bond protects your customers and the state, not your dealership. If a buyer suffers a loss because a title never arrived, an odometer was misrepresented, or fees they paid were never remitted, they can file a claim. The surety investigates, pays valid claims up to the bond limit, and then seeks reimbursement from the dealer, so it functions as a guarantee of your conduct rather than as insurance.

The bond amount is set by state statute and varies widely, and some states scale it to your sales volume or license class. Franchise dealers, independent used vehicle dealers, wholesale dealers, salvage dealers, and motorcycle or RV dealers frequently sit in different classes with different amounts and different forms.

  • Required by your state DMV before a dealer license is issued or renewed
  • Protects vehicle buyers and the state, not the dealership
  • Amount is set by state statute and varies by license class
  • You pay an annual premium, not the full bond amount
Dealer handing keys to a customer after a vehicle sale

Dealer bonds at a glance

Who requires it

Your state DMV, motor vehicle commission, or dealer licensing board

Bond amount

Set by state statute. Commonly between twenty-five and one hundred thousand dollars, with wide variation by state and license class

Premium

A percentage of the bond amount, driven mainly by credit. Strong credit earns the lowest rates

Bond term

Usually one or two years, renewed on your dealer license cycle

Also called

Auto dealer bond, used car dealer bond, DMV dealer bond, MVD bond

Who Requires One

Dealers we bond

If your state issues you a dealer license, a bond comes with it. License classes differ, and so do the forms.

Independent Used Dealers

Independent used vehicle lots, the most common dealer class we bond, from single-location operations to multi-lot groups.

Franchise Dealers

New vehicle franchise dealerships, which often sit in a separate license class with its own bond amount and form.

Wholesale Dealers

Wholesale and dealer-to-dealer operations selling at auction rather than to the retail public.

Specialty Classes

Motorcycle, recreational vehicle, trailer, and salvage or rebuilder licenses, each with its own bonding requirement.

How It Works

Bonded in four steps

01

Apply online

Complete our guided application in about five minutes. No documents required to start.

02

We confirm the form

Tell us your state and license class and we verify the correct DMV bond form and statutory amount.

03

Approve your quote

A firm annual premium with no obligation, usually the same business day. Pay online when you are ready.

04

File with the DMV

Your executed bond goes out ready to file with your license application, and we track the renewal date.

Start My Application
Questions

Dealer bond FAQs

You pay an annual premium, not the bond amount. Credit is the main driver: dealers with strong personal credit commonly pay around one percent of the bond amount per year, while weaker credit can move that several times higher. Because statutory bond amounts differ so much by state, the premium range is wide. Apply and we will quote your exact figure, usually the same business day.
It is fixed by state statute and depends on your license class, and several states adjust it based on sales volume or years in business. It is stated in your dealer license application packet. Tell us your state and class on the application and we will confirm the amount and the correct form before anything is issued.
Usually yes. Dealer bonds are underwritten more carefully than smaller license bonds because claim exposure is real, but decline is uncommon. Expect a higher rate, and occasionally a collateral or payment plan arrangement. We place business with carriers that run dedicated programs for challenged credit, so be straightforward on the application and we will find the option that works.
No, and the two get confused often. A dealer bond is a license bond covering your dealership operations generally. A certificate of title bond, sometimes called a bonded title, is a one-off bond that lets an individual obtain title to a specific vehicle where the paperwork is missing. If it is a single vehicle you are dealing with, our title bonds page is the right starting point.
The most common are failure to deliver clear title to a buyer, odometer or condition misrepresentation, and collected taxes or registration fees that were never remitted to the state. If the claim is valid the surety pays and then recovers from the dealership. A paid claim raises your renewal cost and can put your license at risk, so title and tax administration is worth getting right.
Most dealer bonds are quoted the same business day and issued the day you approve the quote and pay. If you have a DMV inspection or license deadline scheduled, call us at (800) 921-1008 and we will move it to the front of the queue.
Keep Exploring

More License & Permit bonds

Get your dealer license moving.

Five minutes to apply, and a BF Bond agent confirms the right form for your state and license class.

Apply for a Dealer Bond
Or call (800) 921-1008
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License & Permit Bond Application

Takes about 5 minutes · Save & resume anytime · No obligation
License & Permit Bond Application
If you're not sure, choose the closest match — we'll confirm the exact bond with you before anything is issued.
New York sizes the nail salon wage bond by your number of full-time employees — we'll fill in the bond amount for you.
Your 10-digit NPI as listed in the NPPES NPI Registry.
Your Medicare supplier number, if one has been assigned.
How many years would you like the bond issued for?
Suppliers with more than one location may be asked for financial statements.
If the registry is out of date, financial statements may be requested.
The date your current DMEPOS bond will cancel.
PDF, Word, JPG or PNG. Up to 2 files, 10 MB each. You can also email it to info@bfbond.com after you apply.
The obligee sets this amount — it's usually listed on your license or permit paperwork.
When is the bond required to start?
The agency, board, court, or entity requiring your bond.