Auto dealer bond (MVD)
The motor-vehicle dealer bond states require for new, used, and wholesale dealer licenses.
What it is
An auto dealer bond (motor vehicle dealer bond) is a surety bond states require to issue a dealer license. It is generally intended to assure you follow motor-vehicle laws — title and odometer rules, taxes and fees, and honest sales practices — and gives customers and the state a way to recover for covered violations.
Who requires it
- •State motor vehicle agency (DMV/MVD) — Most states require a dealer bond at a set amount as a condition of a new, used, or wholesale dealer license.
What drives the price
- •State-set bond amount — Your state sets the required amount, and premium is a percentage of it.
- •Your credit — Dealer bonds are credit-based; stronger credit generally means a lower rate.
How surety bonds work
A surety bond is a three-party agreement between you (the principal), the government agency or party requiring it (the obligee), and the surety company that backs it. It is not insurance for you — it protects the obligee and the public. If a valid claim is paid on your bond, you are responsible for reimbursing the surety. Premium is a small percentage of the bond amount and is driven mostly by the required bond amount and the applicant’s credit.
Ready to get bonded? Quote and buy your auto dealer bond online.
Quote & buy at SuretyBondly →Frequently asked questions
How much is an auto dealer bond?
Premium is a percentage of the state-required amount and depends mostly on that amount and your credit. A quick quote shows your figure.
Does the bond amount differ by dealer type?
Often yes — many states set different amounts for new, used, and wholesale dealers. Check your state’s requirement.
Is the bond insurance for my dealership?
No. It protects buyers and the state; if a claim is paid, you reimburse the surety.
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