Motor Vehicle Dealer Bonds

The type of Motor Vehicle Dealer Bond and bond amount you require depends on the types of vehicles you sell and the state you operate your business. While many states require a general Motor Vehicle Dealer Surety Bond, some require a specific type of bond for certain license types.

The different type of Dealer Licensing Bonds include:

Auction Dealer Bonds: If you’re planning to sell vehicles at auction, this may be the bond type you require.

Franchise (New) Dealer Bonds: Dealers exclusively selling new vehicles.

Independent (Used) Vehicle Dealer Bonds: Dealers selling used vehicles.

Salvage (Dismantler / Parts Recycler) Dealer Bonds: Selling non-functional vehicles to be used as parts.

Recreational (Trailer / Motorsports / RV) Dealer Bonds: Check with your state’s licensing board to verify if you’ll need this specialty bond type or if a general Motor Vehicle Dealer Bond will cover these types of vehicles.

Wholesale Dealer Bonds: Dealers selling used vehicles to other dealers.

Note that not every state requires licensed dealers to be bonded. The best method to determine exactly what you need is to contact your state’s licensing department. They will provide you with a copy of the bond form if they require you to get a Surety Bond. We’ve created a helpful interactive form to help you determine what type of Motor Vehicle Bond and bond amount you’ll need here.