Connecticut Auto Dealer Bond$60,000 — Form K-158

Connecticut auto dealer bonds ($60,000) cost $600-$6,000 annually depending on credit. Excellent credit (750+) qualifies for $600-$1,200 (1-2%). Good credit (680-749) costs $1,500-$3,000 (2.5-5%). Fair credit (620-679) ranges $3,000-$4,200 (5-7%). Despite the biennial license period, bonds are typically written annually with renewal before the bond expiration date.

Form K-158 is the official Connecticut surety bond form titled "Surety Bond — Motor Vehicle: Dealer, Repairer/Limited Repairer, or Leasing/Renting." It must be completed and submitted with your Form K-7 license application. The bond amount varies by business type: $60,000 for motor vehicle dealers, $25,000 for general repairers and recyclers, and $15,000 for leasing/renting companies.

Connecticut increased the motor vehicle dealer bond requirement from $50,000 to $60,000 effective July 1, 2022. The increase strengthened consumer protection by providing a larger pool of funds available for valid claims against dealers. All existing dealers were required to upgrade their bonds to the new $60,000 amount at their next renewal.

Connecticut requires several specific forms: Form K-7 (Dealer or Repairer License Application), Form K-158 (Surety Bond), Form R1325d (Financial Responsibility Insurance Certificate — original and duplicate), and reference to Form K-36 (Procedure document outlining the full process). All forms are available from the DMV Dealers & Repairers Licensing Unit at 60 State Street, Wethersfield, CT 06161.

Connecticut dealer licenses are valid for two years (biennial). After the expiration date, dealers have a 45-day grace period to renew before a $100 late fee applies. The license fee is $700 for a new license. Never let your license or bond lapse — operating without a valid license is a violation of Connecticut law.

Connecticut requires a special Financial Responsibility Insurance Certificate (Form R1325d) covering all vehicles with dealer plates. Minimum coverage is $25,000/$50,000 for bodily injury and $25,000 for property damage. An original and duplicate of Form R1325d must be submitted. This is separate from and in addition to the $60,000 surety bond (Form K-158).

Yes, but at a different amount. General repairers and recyclers need a $25,000 bond, and leasing/renting companies need a $15,000 bond. All use the same Form K-158 but with different bond amounts. Only motor vehicle dealers require the full $60,000 bond. Low-speed vehicle dealers also require a $25,000 bond.

Yes, we work with multiple carriers that specialize in all credit situations. While the $60,000 bond amount is above average nationally, we have programs for applicants with credit scores as low as 500. Rates for lower credit may be 8-10% ($4,800-$6,000), but approval is often possible through our specialized surety partners.