California Auto Dealer Bond: $50,000 DMV Requirement
Get your California auto dealer bond (DMV Form OL 25) with same-day approval. Required $50,000 bond for all California car dealers. A-rated carriers, competitive rates, all credit types accepted.
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Fast approval • Competitive rates
$50,000
Required by California DMV
$500-$5,000
Annual premium (credit-based)
1 business day
Same-day approval available
Annual
Renewable yearly
California DMV Dealer Licensing Requirements
Complete requirements for obtaining an auto dealer license in California, including the mandatory $50,000 surety bond (DMV Form OL 25).
- Complete California DMV dealer license application
- $50,000 auto dealer surety bond (DMV Form OL 25)
- Garage liability insurance ($1,000,000 minimum)
- Established place of business with proper zoning
- Valid California business license
- Seller's permit from CA Department of Tax and Fee Administration
- Sales tax bond or deposit (if applicable)
- Fingerprint and background check
- Pass DMV facility inspection
Understanding California Auto Dealer Bonds
California requires all motor vehicle dealers to post a $50,000 surety bond (DMV Form OL 25) before obtaining a dealer license. This bond serves as a financial guarantee that dealers will comply with state motor vehicle laws, pay required taxes and fees, and operate ethically.
The California Department of Motor Vehicles mandates this bond to protect consumers from fraudulent practices, ensure payment of state fees, and provide recourse for individuals harmed by dealer misconduct. This applies to all dealer types - new car franchises, independent used dealers, wholesale dealers, and vehicle auctions.
How California Dealer Bonds Work
When you purchase a California auto dealer bond, the surety company guarantees to the DMV that you will:
- Properly handle title transfers and registrations
- Pay all sales taxes and registration fees
- Provide truthful advertising and vehicle condition disclosure
- Comply with odometer disclosure requirements
- Honor warranties and service commitments
- Maintain required business records
- Operate from an established, properly zoned location
Important: Bond vs Insurance
Your dealer bond protects consumers, not your business. If a claim is paid by the surety, you must reimburse the full amount plus legal costs. This makes the bond a form of credit, not insurance. Maintain strict compliance to avoid costly claims.
Frequently Asked Questions
Common questions about California auto dealer bonds
California auto dealer bonds ($50,000) cost $500-$5,000 annually depending on credit. With excellent credit (750+), expect $500-$1,000 (1-2%). Good credit (680-749) costs $1,000-$2,000 (2-4%). Fair credit (620-679) ranges $2,000-$3,500 (4-7%). Lower credit may require up to $5,000 (10%). We offer competitive rates for all credit levels with same-day approval.
DMV Form OL 25 is the official California auto dealer bond form. This $50,000 surety bond must be filed with your dealer license application. The bond protects consumers from dealer fraud, unpaid fees, or violation of motor vehicle laws. You can obtain this bond through our online system with same-day approval.
California DMV dealer licensing typically takes 4-8 weeks from application to approval. The bond can be issued within 1 business day. Other requirements like facility inspection and fingerprinting add to the timeline. Start your bond application early to avoid delays in your licensing process.
Yes, California requires both a $50,000 surety bond (DMV Form OL 25) and garage liability insurance ($1,000,000 minimum). The bond protects consumers from licensing violations, while insurance covers property damage and liability claims. Both are mandatory for DMV dealer licensing.
Yes, we have specialized programs for all credit situations. We've secured California dealer bonds for applicants with credit scores as low as 500. Rates vary based on credit, but approval is often possible. Our underwriters work with multiple carriers to find the best solution.
The surety company investigates claims filed by consumers or the DMV. If valid, they pay up to $50,000. You must then reimburse the surety for amounts paid plus legal costs. Maintain compliance with all DMV regulations and consumer protection laws to avoid claims.
No, California requires the same $50,000 bond (DMV Form OL 25) for both new and used vehicle dealers. All dealer types - franchised, independent, wholesale, or auction - need this bond for DMV licensing, regardless of vehicle type sold.
California dealer bonds renew annually. We send renewal reminders 60 days before expiration. Most renewals are approved within 1 business day with updated pricing based on current credit. Never let your bond lapse - it results in immediate license suspension by the DMV.
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Same-day approval • All credit types • A-rated carriers
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