*For car dealers Bond please Download and Fax application to 623.321.6029
As a visitor to BuyaSuretybond.com, you are likely aware that the primary purpose of many surety bonds is to protect consumers from fraud, contract default and other wrongful actions done by industries and businesses who provide goods and services directly to the public.
Importance of Bonds
Many types of businesses get bonded, either because it’s required for a license or permit or simply to demonstrate they are an ethical and aboveboard company. Contractors, cleaning companies and mortgage brokers are among the many types of businesses who must get bonded. Auto dealers must also be bonded to obtain their auto dealership license.
Protection
The auto dealer bond (also called the motor vehicle dealer bond, the DMV bond, and the used car dealer bond) guarantees compliance with:
- federal laws
- state laws
- local laws
- payment of taxes or judgments (in certain circumstances)
The bond also protects the consumer against fraud or other wrongful actions on behalf of the dealership and its employee(s).
For example, the bond takes effect if the dealership is found to be misrepresenting its merchandise, not forwarding sales tax payments to the state or using unethical business practices to sell vehicles, among a host of other offenses.
Benefits to the Consumer
As a consumer, ensuring that any car dealer you deal with is bonded and licensed is in your best interest. Besides being required by law in most areas, the bond offers you another layer of protection. The bond ensures that a third party (the insurance or bond company) has approved the dealer as being financially stable. You can be assured that the bond company will be able to step in and fix or improve the situation for you should something go wrong during your transaction.
Obtaining a Bond
Dealers generally purchase their bonds through an insurance company or surety bond company. To prove that he or she is financially solvent and can cover any bond premiums and cost, the dealer will be required to fill out an application, submit to a credit check, and provide financial statements.
Auto Dealer Surety Bond State Requirements Retail and Wholesale Dealers Bonds.
| Bond | Required By | Bond Form Version | |
|---|---|---|---|
| Alabama Bond of Automotive Dismantler & Parts Recycler Bond | Alabama Department of Revenue | LIC: 756-2 07/08 | |
| Alabama Used Motor Vehicle Dealer, Reconditioner, Rebuilder, or Wholesaler Bond | Alabama Dept of Revenue | $10K, Rev. 7/08 | |
| Alabama Bond of Designated Agent Bond | Alabama Department of Revenue | $10K, MVT 4-3 Rev 12/96 | |
| Alaska Motor Vehicle Dealer’s/Buyer’s Agent Bond | Division of Motor Vehicles | AS 08.66 Rev 05/2003 | |
| Arizona Vehicle Dealer Bond | Motor Vehicle Division | 38-1301 R02/09 | |
| Arkansas Used Motor Vehicle Dealer Bond | State Police – Special Services Section | $25K | |
| California Retail Dealer Bond | Department of Motor Vehicles – Occupational Licensing | OL 25 (REV. 11/2004) | |
| Colorado Motor Vehicle Dealer Bond | Department of Revenue – Auto Industry Division | DR 2830 (11/06/07) | |
| Connecticut Motor Vehicle Dealer Bond | Department of Motor Vehicles – Dealers & Repairers Section | K-158 REV. 6-10 | |
| Delaware Financing the Sale of Motor Vehicles License Bond | State of Delaware | S-6089.102 | |
| District of Columbia Repair Dealer Bond | Department of Consumer & Regulatory Affairs | DC CS 40-1103 | |
| District of Columbia Motor Vehicle Dealer Bond | Department of Consumer & Regulatory Affairs | DC CS 40-1103 | |
| Florida Recreational Vehicle Dealer Bond | Department of Highway and Motor Vehicles – Division of Motor Vehicles | HSMV 86019 (Rev. 03/07) | |
| Florida Mobile Home Dealer Bond | Department of Highway Safety & Motor Vehicles | HSMV 86018 (Rev. 03/07) | |
| Florida Motor Vehicle Dealer Bond | Department of Highway and Motor Vehicles – Division of Motor Vehicles | HSMV 86020 (Rev. 02/10 ) | |
| Georgia Used Motor Vehicle & Parts Dealer Bond | State Board of Registration – Used Motor Vehicle | Rev. 11/28/06 | |
| Hawaii Motor Vehicle Dealer Bond | Motor Vehicle Industry Board – Department of Commerce and Consumer Affairs – PVL Licensing Branch | MOVE-13 0710R | |
| Idaho Vehicle or Vessel Dealer Bond | Transportation Department | ITD 3170 (Rev. 1-10) | |
| Illinois Designated Agent Bond | Secretary of State – Vehicle Services Department | 5M – RT DS 47.5 – April 2006 | |
| Indiana Vehicle Merchandising Bond | Indiana Secretary of State Dealer Division | Form 53966 (R. 8-09) | |
| Iowa Motor Vehicle Dealer Bond | Department of Transportation | Form 417057 06-07 | |
| Kansas Motor Vehicle Dealer Bond | Department of Revenue – Division of Vehicles – Dealer Licensing Bureau | D-20 (4-03) | |
| Kentucky Motor Vehicle Dealer Bond | Motor Vehicle Commission | (License Bond) | |
| Louisiana Motor Vehicle Dealer Bond | Recreational and Used Motor Vehicle Commission | LUMVPC 113 (07/04) | |
| Maine Motor Vehicle Dealer Bond | Bureau of Motor Vehicles – Dealer and Agent Services | MVT-51 (Rev. 01/04) | |
| Maryland Boat Dealer Bond | Department of Natural Resources – Licensing & Regi | DNR B-142A rev 5/05 | |
| Maryland Vehicle or Trailer Dealer Bond | Motor Vehicle Administration | CS-067A (10-06) | |
| Massachusetts Hampden, MA Used Car Dealer’s Bond | Town of Hampden | S-6472 (4/04) | |
| Massachusetts Peabody, MA Used Car Dealer’s Bond | State of Massachusetts- Peabody City Hall | S-6472 (4/04) | |
| Massachusetts Lawrence, MA Used Car Dealer’s Bond | City of Lawrence | S-6472 (4/04) | |
| Massachusetts Worcester, MA Used Car Dealer’s Bond | City of Worcester | S-6472 (4/04) | |
| Massachusetts Medford, MA Used Car Dealer’s Bond | City of Medford | S-6472 (4/04) | |
| Massachusetts Marlborough, MA Used Car Dealer Bond | Department of Municipal Licensing | S-6472 (4/04) | |
| Massachusetts Middleton, MA Used Car Dealer’s Bond | Town of Middleton | S-6472 (4/04) | |
| Massachusetts Fall River, MA Used Car Dealer’s Bond | City of Fall River | S-6472 (4/04) | |
| Massachusetts Lynn, MA Used Car Dealer’s Bond | City of Lynn, City Clerks Officer | S-6472 (4/04) | |
| Massachusetts Somerset, MA Used Car Dealer’s Bond | Town Of Somerset | S-6472 (4/04) | |
| Massachusetts Carver, MA Used Car Dealer Bond | Town of Carver Licensing Authority | S-6472 (4/04) | |
| Massachusetts Attleboro, MA Used Car Dealer’s Bond | City of Attleboro | S-6472 (4/04) | |
| Massachusetts Natick, MA Used Car Dealer’s Bond | Town of Natick | S-6472 (4/04) | |
| Massachusetts Groton, MA Used Car Dealer Bond | Town of Groton | S-6472 (4/04) | |
| Massachusetts Massachusetts Used Car Dealer’s Bond | City of Gardner | S-6472 (04/04) | |
| Massachusetts Franklin, MA Used Car Dealer Bond | Town of Franklin | S-6472 (4/04) | |
| Massachusetts Westport, MA Used Car Dealer Bond | Town of Westport, MA | S-6472 (4/04) | |
| Massachusetts Second Hand Motor Vehicle Dealer Bond Bond | City Of New Bedford | $25K | |
| Massachusetts Danvers, MA Used Car Dealer’s Bond | Town of Danvers | S-6472 (4/04) | |
| Massachusetts Framingham, MA Used Car Dealer Bond | Town of Framingham | S-6472 (4/04) | |
| Massachusetts Salisbury, MA Used Car Dealer’s Bond | Town of Salisbury | S-6472 (4/04) | |
| Massachusetts Malden, MA Used Car Dealer’s Bond | City of Malden | S-6472 (4/04) | |
| Massachusetts Milford, MA Used Car Dealer’s Bond | Town of Milford | S-6472 (4/04) | |
| Massachusetts Boston, MA Used Car Dealer’s Bond | Commonwealth of Mass – Division of Standard | S-6472 (4/04) | |
| Massachusetts North Andover, MA Used Car Dealer’s Bond | Town of North Andover | S-6472 (4/04) | |
| Massachusetts Abington, MA Used Car Dealer’s Bond | Town of Abington | S-6472 (4/04) | |
| Massachusetts Taunton, MA Used Car Dealer’s Bond | City of Taunton | S-6472 (4/04) | |
| Massachusetts North Attleboro, MA Used Car Dealer Bond | Town of North Attleboro | S-6472 (4/04) | |
| Michigan Motor Vehicle Dealer Bond | Department of State | AR-0026 (5/07) | |
| Minnesota Motor Vehicle Dealer Bond | Department of Public Safety – Driver and Vehicle Services | PS2446-05 | |
| Mississippi New Motor Vehicle Dealer Bond | Motor Vehicle Commission | Sections 63-17-51 | |
| Mississippi Designated Agent Bond Bond | State Tax Commission – Office of Revenue | Form 78-850-02-1-1-000 (Rev.02/04) | |
| Missouri Motor Vehicle Dealer Bond | Motor Vehicle Bureau – Dealer Licensing Section | Attachment C-1 | |
| Montana Motor Vehicle Dealer Bond | Title and Registration Bureau | S-3176-1105 | |
| Nebraska Motor Vehicle Dealer ($25K) Bond | Motor Vehicle Industry Licensing Board | SS 60-1401 | |
| Nebraska Motor Vehicle Dealer ($50K) Bond | Motor Vehicle Industry Licensing Board | SS 60-1401 | |
| Nevada Motor Vehicle Dealer Bond | Occupational and Business Licensing | OBL210 (01/2009) | |
| New Hampshire Motor Vehicle Dealer Bond | Division of Motor Vehicles – Dealer Licensing Bureau | 887673 (02/02) | |
| New Jersey Used Motor Vehicle Dealer Surety Bond | Division of Motor Vehicles – Dealer Licensing Bureau | $10K | |
| New Mexico Vehicle Dealer or Dismantler Bond Bond | Motor Vehicle Division | MVD-10175 REV. 08/98 | |
| New York Motor Vehicle Dealer Bond | Department of Motor Vehicles | VS-3 (4/07) | |
| North Carolina Motor Vehicle Dealer Bond | Division of Motor Vehicles – License & Theft Bureau | LT-409 (Rev. 9/06) | |
| North Dakota Motor Vehicle Dealer Bond | Department of Transportation – Motor Vehicle Division | SFN 2933 (Rev. 09-2006) | |
| Oklahoma Used Motor Vehicle Dealer Bond | Used Motor Vehicle and Parts Commission | $15K, 47 O.S. 583(B) | |
| Oregon Motorcycles, Mopeds, Snowmobiles, ATV Bond | Dept of Transportation Driver and Motor Vehicle Se | 735-366B (1-10), $2K | |
| Oregon Dealer or Rebuilder of Vehicles Bond | Department of Transportation – Driver and Motor Vehicle Services | 735-370B (1-10) | |
| Pennsylvania Dealer/Agent/Messenger/Salvor Bond | Department of Transportation – Bureau of Motor Vehicles – Dealer Registration Section | MV-375 (07-03) | |
| Rhode Island Dealer’s License Bond | Division of Motor Vehicles – Dealer’s License & Regulations Office | Chapter 1499 P.L. 1956 | |
| South Carolina Motor Vehicle Dealer Bond | Department of Motor Vehicles – Dealer Licensing & Audit Unit | DLA-1b (Rev. 9/06) | |
| South Dakota Vehicle Dealer Bond | Division of Motor Vehicles | 32-6B-7 | |
| Tennessee Motor Vehicle Dealer Bond | Motor Vehicle Commission | IN-1316 (Rev. 11/03) | |
| Tennessee Motor Vehicle Auction Bond | Motor Vehicle Commission | IN-1316 (Rev. 11/03) | |
| Texas Motor Vehicle Dealer Bond | Department of Transportation – Motor Vehicle Division | Form 1923/MVD-LP031 (11/04) | |
| Utah Motor Vehicle Dealer, Crusher, Body Shop Bond | Motor Vehicle Enforcement Division | TC-450 Rev. 4/10 | |
| Virginia Motor Vehicle Dealer Bond | Motor Vehicle Dealer Board | MVDB 2 (07/15/2008) | |
| Washington Motor Vehicle Dealer Bond | Department of Licensing | DLR-430-205 (R/6/06) | |
| West Virginia Motor Vehicle Dealer Bond | Division of Motor Vehicles – Dealer Services | MV-126-DS-P (Rev. 3-2008) | |
| Wisconsin Motor Vehicle Dealer Bond | Department of Transportation | MV2511 11/2003 | |
| Wyoming Motor Vehicle Dealer Bond | Department of Transportation – Motor Vehicle Services – Licensing & Titling | MV-424 (04-08 |
If a dealer has less-than-stellar credit, obtaining a bond will be more difficult. However, he or she can apply with companies who have special programs for people with sub par credit.
Auto Dealers—Get Bonded on BuyaSuretybond.com
If you are starting a new auto dealership or are looking for a new partner to help secure your Auto Dealer Surety Bonds, call Surety Bonds.com today and speak with one of our specialists. We have helped hundreds of business owners across the country understand bonding requirements. We’d be happy to help you get bonded today!
