Connecticut Auto Dealer Bond— $60,000 -- Recently Increased From $50,000
Connecticut raised its dealer bond requirement by 20% in July 2022, from $50,000 to $60,000 under Public Act 22-44. Filed on Form K-158 with the Dealers & Repairers Licensing Unit. The biennial license pairs with annual bond terms -- a unique structure among New England states. At $60,000, Connecticut now has the highest flat-rate dealer bond in the Northeast. Get your instant quote.
Compare: New York ($20K-$100K tiered) | Massachusetts ($25,000) | New Jersey ($10,000)
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Official Connecticut Requirements
"A surety bond must be submitted with each application. The bond amount is $60,000 in the case of a motor vehicle dealer, $25,000 in the case of a motor vehicle general repairer or recycler, and $15,000 for a leasing or renting company."Connecticut Department of Motor Vehicles • CT General Statutes Section 14-52
Connecticut Dealer Bond Increase
Bond Requirement Increase
Previous Requirement
$50,000
New Requirement
$60,000
The July 2022 Bond Increase: What Changed and Why
On July 1, 2022, Connecticut's motor vehicle dealer bond requirement jumped from $50,000 to $60,000 -- a 20% increase enacted through Public Act 22-44. The change reflected the legislature's finding that the prior cap was insufficient to cover consumer losses given the sharp rise in vehicle transaction values.
The practical impact was immediate: every dealer in Connecticut needed to upgrade their bond at their next renewal. Dealers who had been paying 1-2% on a $50,000 bond ($500-$1,000/year) saw premiums rise proportionally to 1-2% on $60,000 ($600-$1,200/year). For dealers with challenged credit paying 8-10%, the jump was more significant -- from $4,000-$5,000 to $4,800-$6,000 per year.
This increase was dealer-specific. The bond amounts for general repairers ($25,000), recyclers ($25,000), and leasing/renting companies ($15,000) remained unchanged. Connecticut is now the highest flat-rate dealer bond state in the Northeast, surpassing Rhode Island ($50,000) and far exceeding New Jersey ($10,000).
For a broader perspective on how bond costs are determined, see our surety bond cost guide. If you need to understand the basics first, read what a surety bond is.
Biennial License, Annual Bond: Connecticut's Dual Cycle
Connecticut creates an unusual situation: your dealer license is biennial (2-year), but your surety bond is typically written on an annual term. This means you handle bond renewals every 12 months even though your license renewal is every 24 months. It is the reverse of Oklahoma or Tennessee, where both the bond and license share the same biennial cycle.
The critical rule: your bond must remain continuously active throughout the entire biennial license period. If your bond lapses mid-cycle -- even if your license is still valid -- you cannot legally operate. We track both cycles and send renewal reminders 60 days before each annual bond expiration. Use our auto dealer bond calculator to estimate your annual premium, or learn how to get a surety bond.
After the biennial license expires, you have a 45-day grace period before a $100 late fee applies. But there is no grace period for the bond -- if it lapses, you are immediately non-compliant. New license applications cost $700.
Application Checklist (Form K-7)
- Complete Form K-7 (Dealer or Repairer License Application)
- $60,000 surety bond on Form K-158 (Motor Vehicle Dealer/Repairer/Recycler/Leasing bond)
- CT Financial Responsibility Insurance Certificate (Form R1325d) -- $25,000/$50,000 bodily injury, $25,000 property damage
- Sales tax permit number from the Department of Revenue Services
- Established place of business with proper zoning and signage
- Certificate of Incorporation or trade name registration
- Dealer/repairer plate fee of $140 per plate
- Review Form K-36 (Procedure for Obtaining a CT Dealer or Repairer License)
- Pass DMV facility inspection
- Submit to DMV Dealers & Repairers Licensing Unit, 60 State Street, Wethersfield, CT 06161
Get Your $60,000 Connecticut Dealer Bond -- From $600/Year
Same-day approval. Form K-158 prepared. All credit types accepted. See our dealer bond cost guide for full pricing details, or view all bond types and start saving.
Connecticut Dealer Bond at a Glance
Connecticut Form K-158 Bond Amounts by Business Type
All DMV-regulated business types use the same Form K-158, but at different bond levels. Only the dealer category was affected by the July 2022 increase. Understand how bonds differ from insurance. Connecticut businesses may also need a Connecticut mortgage broker bond.
How to Get Your Connecticut Dealer License
Get Your $60,000 Bond & Insurance
Apply online for your bond on Form K-158 -- approved within 1 business day. Separately obtain your CT Financial Responsibility Insurance Certificate (Form R1325d) with $25K/$50K/$25K minimum coverage.
Complete Form K-7
Fill out the Dealer or Repairer License Application. Obtain your sales tax permit from the Department of Revenue Services. Review Form K-36 for the complete procedural guide. Pay the $140 dealer plate fee.
Submit to Wethersfield
Mail or deliver your complete application package to the DMV Dealers & Repairers Licensing Unit at 60 State Street, Wethersfield, CT 06161. Pass facility inspection to receive your biennial license.
Connecticut Dealer Bond Questions
Specific to the $60,000 requirement, Form K-158, and the July 2022 increase
Why did Connecticut increase the dealer bond from $50,000 to $60,000?
Connecticut increased the motor vehicle dealer bond from $50,000 to $60,000 effective July 1, 2022, under Public Act 22-44. The legislature determined that the prior $50,000 cap was insufficient to cover consumer losses in an era of higher vehicle values. The 20% increase brought Connecticut's bond above the national average and provided a larger pool of funds for valid claims. All existing dealers were required to upgrade their bonds at their next renewal cycle.
How much does a Connecticut auto dealer bond cost?
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.
What is Connecticut Form K-158?
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 submitted with your Form K-7 license application. Bond amounts vary by business type: $60,000 for motor vehicle dealers, $25,000 for general repairers and recyclers, and $15,000 for leasing/renting companies. We prepare this form on your behalf.
How does the biennial license work with annual bond terms?
Connecticut dealer licenses are valid for two years (biennial), but the surety bond is typically written for a one-year term. This means you renew your bond annually even though your license renewal is biennial. The bond must remain continuously active throughout the two-year license period. We send renewal reminders 60 days before each annual bond expiration to prevent any gap.
What is Connecticut's grace period for license renewal?
After the biennial license 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. Operating without a valid license or bond is a violation of Connecticut General Statutes Section 14-52.
What insurance does Connecticut require for dealers?
Connecticut requires a Financial Responsibility Insurance Certificate (Form R1325d) covering all vehicles with dealer plates. Minimum coverage: $25,000/$50,000 for bodily injury, $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 on Form K-158.
What bond amounts apply to non-dealer businesses in Connecticut?
Connecticut uses Form K-158 for multiple business types at different bond levels: $60,000 for motor vehicle dealers, $25,000 for general repairers, recyclers, and low-speed vehicle dealers, and $15,000 for leasing/renting companies. The July 2022 increase only affected the dealer category -- repairer and leasing amounts remained unchanged.
Can I get a Connecticut dealer bond with bad credit?
Yes. While the $60,000 bond amount is above the national average, we work with multiple carriers that specialize in all credit situations. Applicants with credit scores as low as 500 can often secure approval. Rates for lower credit may be 8-10% ($4,800-$6,000 annually), but approval is typically possible through specialized surety partners.
Official Connecticut Resources
Auto Dealer Bonds in Neighboring States
Other connecticut Bonds
Additional surety bonds available in connecticut
Updated to $60,000 -- Get Your Connecticut Dealer Bond Now
New bond or upgrading from the old $50,000 amount? Same-day approval on Form K-158, from $600/year.
Get Your Auto Dealer Bond Quote
Same-day DMV approval available • All dealer types
Pay only after your bond is issued • No obligation • 2 minutes