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Last updated: General auto dealer bond requirements information — confirm current requirements with the licensing authority.
Motor Vehicle Dealer License Bonds

Auto Dealer Surety Bond: Cost and Requirements by State

An auto dealer surety bond is the state-required bond every motor vehicle dealer must post before the DMV will issue a license. Most dealers pay $250–$1,500 per year for a bond ranging from $10,000 to $100,000, depending on state and dealer type. Estimate yours with the auto dealer bond calculator, get a quote, and file with your DMV once the bond is issued.

Your next step

  1. 1. Find your state's required bond amount in the state table below.
  2. 2. Get a fast rate using our auto dealer bond cost calculator.
  3. 3. Purchase a surety bond online — most bonds are submitted promptly on the correct state-specific form.
Prompt
Submission
50 + DC
States Covered
$10K–$300K
Bond Amounts
All Levels
Credit Accepted
Get My Dealer Bond QuoteEstimate Your Premium
Quick answer
An auto dealer bond is the state-required surety bond a motor vehicle dealer must post before the DMV will issue a license. Most dealers pay $250–$1,500 per year for a bond ranging from $10,000 to $100,000, depending on state and dealer type.
  • Who requires it: Each state's DMV or dealer licensing agency, which sets the required bond amount. The state table on the page lists every state.
  • Amount: Ranges from $10,000 to $100,000 depending on state and dealer type.
  • Typical cost (estimate): $250–$1,500 per year for most dealers. The surety sets the final price.
  • Timing: We submit complete applications to the carrier promptly; most quotes within one business day.
Get an auto dealer bond quote
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All Credit Levels Reviewed
Every State DMV Accepted

What a car dealership surety bond actually does

An auto dealer bond is a three-party legal agreement: you promise your state motor vehicle authority that you'll follow state dealer laws, and a surety company backs that promise with cash up to the bond's face amount. If you break a dealer law in a way that harms a consumer — say, you fail to deliver a clean title within the state's required window, you roll back an odometer, or you pocket a trade-in payoff — the harmed party can recover from the bond.

Principal
You, the dealer

Purchase the bond and bear the ultimate financial responsibility for any paid claim.

Obligee
Your state

The state DMV or motor vehicle authority requiring the bond as a condition of licensing.

Surety
The bond carrier

A Treasury-approved insurance company that pays valid claims up to the bond amount.

Here's the part dealers often miss: a surety bond is not insurance for you. When the surety pays a consumer claim, you must reimburse the surety dollar-for-dollar through the indemnity agreement you signed. The bond protects your customers and the state — it doesn't protect your dealership from financial loss. For that, you need separate garage liability insurance.

Dealers: title bonds for vehicles without titles

Dealers who take in trade-ins or auction units with a missing or defective title can, in states that offer one, apply for a bonded title so the vehicle can be titled and resold. Start with the vehicle title bond overview, or go straight to North Carolina or Texas.

Four situations dealers run into have their own guides: salvage and rebuilt vehicle titles, a trade-in from another state with no title, trailer title rules and VIN corrections on a trade-in.

Stocking more than cars? See motorcycle titles for dealers, a boat with no title and titling an older unit without paperwork.

Handling titles every week? See how we work with dealers and title services.

Most popular auto dealer bond states

The states dealers request most often. Each page has the exact bond amount, statute, DMV form, and licensing steps.

California Auto Dealer Bond$50,000Texas Auto Dealer Bond$50,000Florida Auto Dealer Bond$25,000New York Auto Dealer Bond$20K / $50K / $100K tieredColorado Auto Dealer Bond$50,000Arizona Auto Dealer Bond$100,000Georgia Auto Dealer Bond$35,000Michigan Auto Dealer Bond$25,000Illinois Auto Dealer Bond$50,000Pennsylvania Auto Dealer Bond$20,000Wisconsin Auto Dealer Bond$50,000 (tiered by license)North Carolina Auto Dealer Bond$50K + $25K/extra salesroom

Auto dealer bond amounts by state (2026)

Required bond amounts for every U.S. state and DC. Ranges indicate volume-tiered bonds (e.g., Maryland's $5,000 to $300,000 scale by dealer type and sales volume). Not every tier is volume-based: the Wisconsin auto dealer bond is set by license type. Statute links point to the governing .gov source when the statute has been read directly.

StateBond Amount
Alabama$50,000Alabama auto dealer bond
Alaska$100,000 / $25K motorcyclesAlaska auto dealer bond
Arizona$100,000Arizona auto dealer bond
Arkansas$25,000Arkansas auto dealer bond
California$50,000California auto dealer bond
Colorado$50,000Colorado auto dealer bond
Connecticut$60,000
Delaware$25,000Delaware auto dealer bond
DC$25,000
Florida$25,000Florida auto dealer bond
Georgia$35,000Georgia auto dealer bond
Hawaii$10K–$200K (bond option)Hawaii auto dealer bond
Idaho$20,000–$40,000Idaho auto dealer bond
Illinois$50,000Illinois auto dealer bond
Indiana$25,000Indiana auto dealer bond
Iowa$75,000Iowa auto dealer bond
Kansas$50,000Kansas auto dealer bond
KentuckyAsset-based, no flat bondKentucky auto dealer bond
Louisiana$20,000–$50,000
Maine$25K–$100K by salesMaine auto dealer bond
Maryland$5,000–$300,000 by volumeMaryland auto dealer bond
Massachusetts$25,000Massachusetts auto dealer bond
Michigan$25,000Michigan auto dealer bond
Minnesota$50,000Minnesota auto dealer bond
MississippiMMVC $25,000; DOR $15,000 minMississippi auto dealer bond
Missouri$50,000 ($100,000 title tier)Missouri auto dealer bond
Montana$50,000, $15,000 or $5,000Montana auto dealer bond
Nebraska$50,000
Nevada$100,000Nevada auto dealer bond
New Hampshire$10,000-$25,000 (two statutes)New Hampshire auto dealer bond
New Jersey$10,000New Jersey auto dealer bond
New Mexico$50K / $12.5K motorcycleNew Mexico auto dealer bond
New York$20K / $50K / $100K tieredNew York auto dealer bond
North Carolina$50K + $25K/extra salesroomNorth Carolina auto dealer bond
North Dakota$25K ($10K–$50K by type)North Dakota auto dealer bond
Ohio$75,000Ohio auto dealer bond
Oklahoma$25,000
Oregon$50,000Oregon auto dealer bond
Pennsylvania$20,000Pennsylvania auto dealer bond
Rhode Island$50,000Rhode Island auto dealer bond
South Carolina$30,000South Carolina auto dealer bond
South Dakota$25,000
Tennessee$50,000Tennessee auto dealer bond
Texas$50,000Texas auto dealer bond
Utah$75K, $10K or $20K by typeUtah auto dealer bond
Vermont$20,000–$35,000
Virginia$50,000Virginia auto dealer bond
Washington$30,000Washington auto dealer bond
West Virginia$25,000West Virginia auto dealer bond
Wisconsin$50,000 (tiered by license)Wisconsin auto dealer bond
Wyoming$25,000

Sources: Individual state DMV and motor vehicle licensing agencies. Statutes verified April 2026. Volume ranges reflect state-tiered bond schedules; your exact required amount depends on your dealer classification and unit volume.

Auto Dealer Bond — Top 10 States by Dealer Volume

Bond amounts and typical premium ranges for the largest dealer-licensing states

StateBond AmountEst. Annual Premium (Good Credit)Governing Agency
California$50,000$500–$1,500CA DMV
Texas$50,000 (2-yr)$500–$1,500TxDMV
Florida$25,000$250–$750FL DHSMV
Ohio$75,000$750–$2,250OH BMV
Pennsylvania$20,000$200–$600PennDOT
Illinois$50,000/location$500–$1,500IL Secretary of State
New York$20K / $50K / $100K tiered$200–$3,000NY DMV
Georgia$35,000 (2-yr)$350–$1,050GA Dealer Board
Michigan$25,000$250–$750MI SOS

Premiums based on 1%–3% rate for applicants with 700+ credit scores. Actual rates vary by credit tier, business experience, and claims history.

Source: Individual state DMV / motor vehicle licensing agencies. Amounts verified April 2026.

How much does an auto dealer bond cost?

The bond amount is set by your state. Your premium — what you actually pay each year — is a percentage of that bond amount, determined by your personal credit, business experience, and the surety's underwriting. On a $50,000 bond (typical for CA, TX, IL, MN, OR, RI, SC, VA), premium rates look like this:

Quick cost examples

  • $20,000 bond (PA): $200–$2,000/yr
  • $25,000 bond (FL, MI): $250–$2,500/yr
  • $50,000 bond (CA, TX, IL): $500–$5,000/yr
  • $100,000 bond (typical for AK, AZ, NV — verify with your state): $1,000–$10,000/yr

Why rates from one surety to the next vary

Identical credit can produce a 1.5% rate from one carrier and 3% from another. Each surety weighs your credit tier, business history, prior claims, and dealer type differently. Multi-quote shopping typically saves dealers 20–40% at renewal.

Which motor vehicle dealer bond do you actually need?

The bond requirement changes based on what you sell and how. Match your dealer classification to the right bond below — amounts and exemptions vary significantly by state. One thing a dealer bond never covers: a trade-in or auction car that arrives with a lost or missing title needs its own bonded title before you can retail it.

New Car Dealer (Franchised)

Typical bond range: $25,000–$300,000

Dealerships operating under a manufacturer franchise agreement to sell new vehicles of a specific brand.

Key note: Texas franchised dealers are EXEMPT from the GDN bond (Transp. Code § 503.033(i)). Some states, such as Maryland, scale the bond by annual unit volume.

Used Car Dealer (Independent)

Typical bond range: $10,000–$100,000

Independent retailers selling used vehicles to the public. The most common license type nationwide.

Key note: New Jersey and DC require only $10,000. Most states fall in the $25,000–$50,000 range. New York is three-tiered under VTL § 415(6-b): $20,000 (≤50 units/yr), $50,000 (new-car dealer), $100,000 (>50 units/yr).

Wholesale-Only Dealer

Typical bond range: $0–$50,000

Sells exclusively to other licensed dealers — no retail sales to the public.

Key note: Michigan exempts wholesale (Class W) dealers from the bond entirely under MCL § 257.248. Most other states apply the same bond as retail.

Auto Broker

Typical bond range: $10,000–$50,000

Arranges vehicle sales between buyers and sellers without taking title.

Key note: California autobrokers need the same $50,000 bond as full dealers. Michigan Class D brokers: $25,000.

Motorcycle / ATV / Powersports

Typical bond range: $5,000–$50,000

Exclusive sellers of motorcycles, ATVs, or powersports equipment.

Key note: California offers a reduced $10,000 bond for exclusive motorcycle/ATV dealers (vs. $50,000 standard). Texas and Colorado do NOT reduce the bond for motorcycle-only dealers.

Trailer-Only Dealer

Typical bond range: $5,000–$50,000

Sells utility, cargo, horse, boat, or specialty trailers exclusively.

Key note: Colorado: $5,000 for utility trailers under 2,000 lbs. Minnesota and Washington: $5,000 for boat/snowmobile/horse trailer dealers. Illinois has NO reduction.

RV Dealer

Typical bond range: $25,000–$50,000

Sells motorhomes, travel trailers, fifth-wheels, and other recreational vehicles.

Key note: Florida licenses recreational vehicle dealers separately under F.S. § 320.771, with its own bond form (HSMV 86019); confirm the bond amount for your license with FLHSMV.

Salvage / Auction Operator

Typical bond range: $25,000–$100,000

Salvage dealers, rebuilders, or motor vehicle auction facilities.

Key note: Ohio used motor vehicle dealers post a $75,000 bond (Ohio Admin. Code 4501:1-3-11, effective April 1, 2026). Texas wholesale auctions require the full $50,000 GDN bond. Michigan salvage classes (C, E, F) are bond-exempt.

Recent state bond-amount changes

Bond requirements move when legislatures update consumer-protection statutes. These are the active changes every dealer renewing in these states should know about.

What happens if your old bond doesn't meet the new amount?

Most state DMVs will reject renewal applications filed with a bond below the current statutory minimum. You'll need either a replacement bond at the new amount or a rider increasing the penal sum of your existing bond. The surety sets how long a replacement bond or rider takes to process. Don't wait until your license-renewal deadline — increases cannot be backdated, and a lapsed license is worse than a renewal delay.

What happens when a claim is filed against your bond

Understanding the claim lifecycle is the single most important thing a dealer can learn before being bonded. Here's exactly what happens, using a realistic scenario.

Scenario

You sell a used 2019 Silverado to a retail buyer. The trade-in had a $12,400 lienholder payoff you were supposed to send to the buyer's credit union. You take the vehicle, sell it to another customer, but never send the payoff. Thirty days later, the buyer's credit union reports the trade-in as delinquent. Your buyer — still making payments on a car they no longer own — files a complaint with the state.

  1. 1

    The complaint is filed

    The harmed consumer files with your state motor vehicle authority (in some states) or obtains a civil court judgment (most states). Virginia and California allow state agencies to issue orders directly; most states require the claimant to go to court first.

  2. 2

    The state or consumer notifies the surety

    The claimant sends a claim packet to your surety company with the judgment or agency order plus proof of attempted collection from you. Some states — like Florida — require the DMV to notify the surety and consumer when a violation is determined (F.S. § 320.27(10)).

  3. 3

    The surety investigates

    The surety reviews the claim against the bond's terms. Valid claims cover actions like failure to deliver title, odometer fraud, unpaid trade-in liens, sales-tax remittance failure, and violation of dealer advertising rules. Punitive damages and interest are typically NOT covered (explicit in Va. Code § 46.2-1527.10).

  4. 4

    The surety pays the claim

    If valid, the surety pays the claimant up to the bond's face amount. Per California Vehicle Code § 11711, state claims get priority, followed by non-licensee consumer claims, then licensee claims. Florida caps aggregate surety liability at the bond amount ($25,000) annually across all claims.

  5. 5

    The surety pursues you for full reimbursement

    This is the part that surprises most dealers. After paying the claim, the surety is subrogated to the claimant's rights — it comes after you, the dealer, for 100% of what it paid, plus legal fees, through the indemnity agreement you signed at bonding. Your personal assets are on the hook if the business can't pay.

  6. 6

    Your license and future rates suffer

    A paid claim on your record triggers manual underwriting at every future renewal, often at doubled or tripled rates. Repeated or severe claims can lead to license revocation, bond cancellation (30 days written notice to the state in most jurisdictions), and an inability to secure a replacement bond.

Claim-process specifics cited from Va. Code § 46.2-1527.10, California Vehicle Code § 11711, and F.S. § 320.27(10). State-specific claim rules vary; consult your state motor vehicle authority for exact procedures.

Dealer bond vs. garage liability insurance

Most states require both. They cover completely different things — confusing them is how dealers end up uninsured for the loss that actually hits them.

Auto Dealer Bond

Protects the consumer and the state — not you.

  • Covers fraud, title issues, sales-tax failures, dealer-law violations
  • You must reimburse surety for any paid claim
  • Required for the dealer license itself
  • Does NOT cover on-lot accidents, property damage, or injuries

Garage Liability Insurance

Protects you from physical-loss claims.

  • Covers test-drive accidents, on-lot injuries, vehicle damage
  • Insurance carrier pays — no reimbursement from you
  • Typically required alongside the bond by most states
  • Florida: $25,000 CSL plus $10,000 PIP minimum (F.S. § 320.27)

Why franchised dealers pay less than independent used-car dealers

A franchised Ford or Toyota dealer typically pays 0.5%–1% on their bond. An independent used car dealer with the same credit score often pays 2%–5% on the identical bond amount. Here's why.

Manufacturer oversight reduces risk

Franchised dealers operate under factory-required audits, fixed-operations reviews, and CSI (customer satisfaction) programs. Sureties view that oversight as an extra layer of loss prevention.

Audited financial statements

Franchised dealers submit annual audited financials to the manufacturer and (often) to lenders. That gives the surety underwriting visibility into liquidity, net worth, and working capital that independent used lots rarely produce.

Higher capitalization

Manufacturer franchise agreements typically require minimum floorplan lines, parts inventory, and real estate investment that signal solvency. A dealer with $2M in inventory and a $500K floorplan facility has demonstrable capacity to pay claims without the surety being involved.

Some states exempt franchised dealers entirely

Texas (Tex. Transp. Code § 503.033(i)) exempts franchised dealers from the GDN bond requirement.

If you're an independent used car dealer, you can narrow the gap by submitting 2 years of business financial statements, personal tax returns, and a written explanation of any credit events. Sureties routinely offer better rates when underwriting has data to work with.

How to get a surety bond for a dealer license (and where it fits in the licensing process)

The bond is one step in a longer licensing checklist. Here's the full path every dealer walks — and where we fit in.

Full dealer licensing checklist

  1. Form your business entity (LLC, Corp)
  2. Obtain Federal EIN from IRS
  3. Register for state sales tax / vendor's license
  4. Secure commercial dealership location (zoning verified)
  5. Install permanent exterior signage
  6. Purchase garage liability insurance (amounts vary by state)
  7. Complete pre-licensing education (CO, TX, GA, NC, IL, MI)
  8. Purchase your auto dealer surety bond ← we do this
  9. Submit fingerprints for background check
  10. Pass DMV facility inspection
  11. File dealer license application with bond + insurance proof
  12. Receive dealer license — open for business

Three-step bond process with us

1
Apply online
Select your state, dealer type, and bond amount. Five-minute application. No upfront payment — pay only when approved.
2
Prompt submission
Qualifying applicants get fast quotes; most others within one business day. Larger bonds or challenged credit may take one business day.
3
File with your DMV
Download your bond certificate on the correct state-specific form (OL 25 for CA, 86020 for FL, VS-3 for NY, DR 2830 for CO, etc.). Submit it with your license application.
Start My Bond Application

Check your state's specifics: California, Texas, Florida, Ohio.

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Video Guide

Watch: Auto Dealer Bond Requirements by State 2026 — Get Your DMV License Fast ($10K–$300K)

Every state plus DC requires an auto dealer bond for your DMV dealer license. Bond amounts range from $10,000 (NJ, DC) to $300,000 (MD). Here's the complete state-by-state breakdown for all 4 dealer types.

Key moments in this video
  • 0:00Why every dealer needs a surety bond
  • 1:00What an auto dealer bond protects
  • 2:004 types: new, used, wholesale, broker
  • 3:00Bond amounts by state
  • 5:30What you actually pay (premium vs bond amount)
Watch on YouTube

Car dealer bond — frequently asked questions

Direct answers to the questions dealers actually ask before applying.

What is required for an auto dealer bond?

To qualify for an auto dealer bond you need a registered business entity (LLC or Corp), a Federal EIN, state sales-tax registration, a commercial dealership location with proper zoning, garage liability insurance, a clean criminal background check, and completed pre-licensing education in states that require it (CO, TX, GA, NC, IL, MI). The bond amount — $10,000 to $300,000 depending on state — is the final step before DMV license approval.

How much does an auto dealer bond cost?

Most dealers pay $250–$1,500 per year. The premium is 1%–10% of the bond amount set by the state, which ranges from $10,000 to $300,000 depending on the state and dealer type. With good credit (700+), a $50,000 bond typically costs $500–$1,500/year. With fair credit, the same bond runs $1,500–$2,500/year. For a $25,000 bond, expect $250–$2,500 annually.

Is an auto dealer bond the same as insurance?

No. Insurance protects you — the dealer — from losses. A surety bond protects your customers and the state from you. If a claim is paid out on your bond, the surety company collects the full amount back from you through subrogation. You still need garage liability insurance separately to cover on-lot accidents, test-drive crashes, and premises liability. The bond covers regulatory and consumer-fraud exposure; the insurance covers physical-loss and injury exposure.

Do all states require an auto dealer bond?

In nearly every state, yes — a surety bond (or an approved alternative such as a deposit) is a condition of a motor vehicle dealer license, though some dealer types are exempt (for example, Texas franchised dealers). There is no federal dealer bond — licensing is 100% state-level, and each state sets its own bond amount, form, and renewal cycle. The BMC-84 freight broker bond ($75,000) is sometimes confused with dealer bonds, but it applies only to FMCSA freight brokers, not auto dealers.

What happens if a claim is filed against my dealer bond?

A consumer or the state files a claim with your surety, typically backed by a court judgment or agency order. The surety investigates and, if valid, pays the claimant up to the bond amount. Then the surety is subrogated — it pursues you, the dealer, for full reimbursement through the indemnity agreement you signed. A paid claim on your record also affects future bond renewals and premiums.

Can I get a dealer bond with bad credit?

Yes. Standard-market rates apply up to ~620 credit scores; below that, high-risk programs add a premium surcharge (typically 7%–15% of the bond amount) or require collateral or a co-signer. Colorado is uniquely strict: applicants need a 701+ VantageScore just to obtain the dealer license itself, regardless of bond availability. For most states, poor-credit dealers are rarely declined outright — the rate is just higher.

How long does an auto dealer bond last?

Most states use annual terms with yearly renewal. Texas uses a 2-year term under the TxDMV framework. Ohio is unique — its bond is "continuous until canceled," meaning it never expires on the document even though you pay an annual premium. Georgia uses a 2-year cycle, Maryland uses a 3-year cycle. Renewal premiums are billed before each term, and a lapse typically triggers automatic license suspension.

How much is an auto dealer bond in Texas?

Texas requires a $50,000 bond for bonded GDN holders such as independent (non-franchised) dealers under Tex. Transp. Code § 503.033. The bond has a 2-year term matching the license, so you pay one premium covering 24 months. Typical cost with good credit: an estimated $500–$1,500 for the full 2-year term. Franchised dealers are exempt under § 503.033(i), and TxDMV also exempts trailer GDN subtypes.

How much is an auto dealer bond in California?

California requires a $50,000 bond under California Vehicle Code § 11710, filed on DMV Form OL 25. Annual premiums typically run from about $500 (excellent credit) to $2,500+ (challenged credit). Exclusive motorcycle and ATV dealers, and wholesale-only dealers selling fewer than 25 vehicles a year, qualify for a reduced $10,000 bond (Form OL 25B). Most dealers also carry garage liability insurance — confirm any insurance requirement with DMV.

Do I need a separate bond for each dealership location?

It depends on the state. Illinois requires the full bond amount per location, and North Carolina requires $50,000 for the first established salesroom plus $25,000 for each additional salesroom. Ohio requires each location to hold its own bond. In Texas, a GDN can cover multiple locations in the same city, and every physical address must be listed on the bond; locations in other cities need their own GDN. Multi-location operators should ask for a multi-location quote — some sureties offer bundled pricing across sites.

How fast can I get my auto dealer bond?

Most auto dealer bond applications are submitted promptly, and applicants with 650+ credit are often quoted quickly. Standard bond amounts ($25,000–$50,000) rarely require financial statements. Larger bonds ($75,000+) or high-risk applicants may need 1–2 business days for underwriting. Once the carrier issues your bond, we email it to you, ready to file with your state DMV.

Which states have the smallest dealer bond amounts?

New Jersey requires a $10,000 dealer bond, and Pennsylvania requires $20,000. Total startup cost depends on license fees, garage liability insurance minimums, facility requirements, and pre-licensing education, which all vary. Florida has a low bond ($25,000) and a confirmed $25,000 CSL garage liability minimum.

Why do franchised new-car dealers pay less than independent used car dealers?

Surety underwriters view franchised dealers as lower-risk: they have manufacturer oversight, audited financial statements, dealer-group backing, and higher capitalization. Rates run 0.5%–1% for franchised dealers versus 2%–5% for independents on identical credit. Some states (like Texas) exempt franchised dealers from the bond requirement entirely, recognizing the lower claim risk.

Where do I file my dealer bond?

You submit the bond certificate to your state's dealer licensing authority along with your license application. Each state has a specific bond form: California uses OL 25, Florida uses 86020 (or 86019 for RVs), Texas files through the TxDMV eLICENSING portal, Ohio uses BMV 4270, New York uses VS-3 with VS-1D, Maryland uses CS-067A, and Colorado uses DR 2830. Your bond is prepared on the state-specific form your licensing authority requires.

Who needs an auto dealer bond?

Licensed motor vehicle dealers. In nearly every state, a surety bond (or an approved alternative such as a deposit) is a condition of a dealer license, and the amount ranges from $10,000 to $300,000 depending on the state and dealer type. Some dealer types are exempt, for example Texas franchised dealers.

How do I get an auto dealer bond?

Apply online with your state, dealer type, and bond amount. Once your bond is issued, you download the bond certificate on your state's required form (OL 25 for California, 86020 for Florida, VS-3 for New York, DR 2830 for Colorado, and so on) and submit it with your dealer license application.

What happens after I apply?

We submit complete applications to the carrier promptly; most quotes come back within one business day. After the carrier issues your bond, you file it with your state dealer licensing authority along with your license application.

Can I get a dealer license without a lot?

Yes, but you still need a physical place of business. The rules are state by state: California, Michigan and North Carolina each require an established business location, even for wholesale-only dealers. California does not require a display area or signs for wholesale-only dealers, but it does require an established office that is not temporary or mobile. Michigan new and used dealers need display land; a Class W wholesaler needs an established permanently enclosed building that is not used for displaying vehicles. North Carolina's statute requires an established salesroom of at least 96 square feet in a permanent enclosed building, and a wholesaler needs an established office in the state. If anything's unclear, call. Eric answers the phone and will walk you through it.

Sources: California DMV: Vehicle dealer license · Michigan Dealer Manual, Chapter 1 · N.C.G.S. 20-288 · N.C.G.S. 20-286

Find your state's dealer bond page

Click your state for the exact bond amount, statute, DMV form, and state-specific licensing steps.

Alabama
$50,000
Alaska
$100,000 / $25K motorcycles
Arizona
$100,000
Arkansas
$25,000
California
$50,000
Colorado
$50,000
Delaware
$25,000
Florida
$25,000
Georgia
$35,000
Hawaii
$10K–$200K (bond option)
Idaho
$20,000–$40,000
Illinois
$50,000
Indiana
$25,000
Iowa
$75,000
Kansas
$50,000
Kentucky
Asset-based, no flat bond
Maine
$25K–$100K by sales
Maryland
$5,000–$300,000 by volume
Massachusetts
$25,000
Michigan
$25,000
Minnesota
$50,000
Mississippi
MMVC $25,000; DOR $15,000 min
Missouri
$50,000 ($100,000 title tier)
Montana
$50,000, $15,000 or $5,000
Nevada
$100,000
New Hampshire
$10,000-$25,000 (two statutes)
New Jersey
$10,000
New Mexico
$50K / $12.5K motorcycle
New York
$20K / $50K / $100K tiered
North Carolina
$50K + $25K/extra salesroom
North Dakota
$25K ($10K–$50K by type)
Ohio
$75,000
Oregon
$50,000
Pennsylvania
$20,000
Rhode Island
$50,000
South Carolina
$30,000
Tennessee
$50,000
Texas
$50,000
Utah
$75K, $10K or $20K by type
Virginia
$50,000
Washington
$30,000
West Virginia
$25,000
Wisconsin
$50,000 (tiered by license)

Related bond types

Vehicle Title Bonds

Lost or missing title bonds for DMV registration

License & Permit Bonds

Professional and business licensing bonds across industries

Freight Broker Bonds (BMC-84)

$75K federal FMCSA bond — not the same as a dealer bond

Auto Dealer Bond Cost by State

Bond amounts and typical premiums, state by state

Commercial Bonds

Compliance and regulatory bonds for businesses

Learn more about surety bonds

Educational resources for dealers and business owners.

What Is a Surety Bond?

Understand how surety bonds work and why dealers need them

How Bond Costs Work

Credit tiers, premium calculations, and ways to save

Lower Your Bond Premium

Practical strategies to reduce what you pay at renewal

Eric Drummond, Licensed Surety Producer
Reviewed by
Eric Drummond, Licensed Surety Producer
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All content is researched from official state and federal sources (.gov). BuySuretyBonds.com works with Treasury-listed surety carriers.

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