All Dealers must have and maintain one Surety Bond, often called a Dealer Bond. They are purchased from a “Surety” (an insurance company or financial institution) that guarantees the bond.
If a dealer engages in fraudulent or illegal practices, an injured party (a consumer or the state) can file a claim against the bond. If the claim is valid, the surety pays the claimant up to the bond’s limit. The dealer is then responsible for reimbursing the surety bonding company.
Dealer surety bonds are essential for building trust in motor vehicle dealers. They reassure consumers and regulators that dealers will operate honestly and lawfully, providing a financial safety net in case of misconduct.
Retail Dealer Bond ($50,000 Bond)
- Cost: $500+/yr (requires credit check)
- Anyone on your license can apply for the bond
- Get a Retail Bond quote
Wholesale Dealer Bond ($10,000 Bond)
- Cost: $100/yr flat rate (NO credit check)
- Must upgrade to a Retail Bond if you sell over 25 vehicles per year
- Get a Wholesale Bond quote
Motorcycle/ATV Only Dealer Bond ($10,000 Bond)
- Cost: $100/yr flat rate (NO credit check)
- Get a Motorcycle/ATV dealer bond quote
