Auto Dealer Bonds

Step 1 of 4

What type of license are you getting?

Different licenses require different bond forms.

Retail Dealer (Used/New) Selling vehicles directly to the public.

Wholesaler / Broker Selling only to other dealers or auctions.

Other / Specialty Motorcycle, RV, Salvage, or Transporter.

Need your bond filed today?

We offer instant digital PDF delivery and overnight shipping for original bond forms required by the DMV.

Why does the DMV require this?

The Department of Motor Vehicles (DMV) or Motor Vehicle Division (MVD) requires a surety bond to protect your customers. It guarantees that you will pay state taxes and deliver valid titles when selling cars.

State Compliance: You cannot get your license plates without it.
Consumer Trust: It shows customers you are a legitimate business.

Step 2 of 4

How is your credit score?

This helps us find you the lowest rate. (Soft pull only).

Excellent (700+)

You qualify for "Preferred" standard market rates.

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Fair (600 - 699)

Standard rates. We can still get you instant approval.

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Under 600 / Other

New business? Bad credit? No problem. We have a program for you.

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Can I get a bond with bad credit?

Yes. Unlike standard insurance, surety bonds are a form of credit. While your rate is higher with a lower score, we work with specialized "Non-Standard" markets that approve 99% of auto dealers regardless of credit history or bankruptcies.

Soft Credit Pull: Getting a quote won't hurt your score.

Financing Available: Pay a percentage now and the rest later.

Step 3 of 4

What bond amount does your state require?

This is determined by the DMV, not your revenue.

$10k Small State

$25k Most Common

$50k Large State

Note: You don't pay the full $25,000 or $50,000. You only pay a small percentage (premium) of that amount, typically 1% to 5% per year.

Step 4 of 4

Need other dealer coverages?

Most dealers bundle these to save money.

Garage Liability Covers slip-and-falls and test drive accidents.

Dealers Open Lot Protects your inventory from hail, theft, and fire.

Dealer Plate Insurance Coverage for vehicles while driving on dealer plates.

How does a Dealer Bond actually work?

A surety bond is different from insurance. It is a three-party agreement between You (The Dealer), the Surety Company, and the DMV (Obligee).

While insurance protects you from accidents, the bond protects the public from fraud. If you fail to transfer a title or pay sales tax, the state can make a claim against your bond.

What it covers:

Title Fraud / Failure to Deliver
Unpaid State Sales Tax
Odometer Tampering
License Violations

Mandatory

Requirement for Licensing

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How much does a Dealer Bond cost?

You pay a small percentage of the bond amount. For a $50,000 bond, rates typically look like this:

Good Credit (700+)

Preferred Rate

0.7% - 1.5%

$350 - $750 / year
For established dealers with strong personal credit history.

Most Common

Fair Credit (650+)

Standard Rate

2% - 4%

$1,000 - $2,000 / year
For average credit or new dealerships just starting out.

Bad Credit / No Credit

Subprime Rate

5% - 10%

$2,500+ / year
We have exclusive programs to approve you even with past bankruptcies.

Frequently Asked Questions

How fast can I get my bond?

Instantly in most cases. Once you pay, we email you a PDF copy immediately. If your state DMV requires the "original raised seal" bond (like California or Texas), we ship it overnight via FedEx.

Do I get the bond money back?

No. The payment is a "premium" to the surety company for backing your business, similar to an insurance premium. It is not a cash deposit that is returned to you.

Does this cover my inventory?

No. A Surety Bond only covers state compliance and fraud. To cover your physical cars (inventory) from theft or hail, you need "Dealers Open Lot" coverage, which we can also provide.

Can I finance the bond premium?

Yes. If your bond premium is over $1,000, we offer financing plans that allow you to put a down payment and pay the rest over several months.