Hawaii Auto Dealer Bond$10,000 - $200,000 Tiered

Hawaii uses a 5-tier bond system under HRS 437. Motorcycle/scooter dealers need $10,000. Used vehicle dealers selling fewer than 60 units per month need $25,000, while those selling 60+ units need $100,000. New vehicle dealers selling fewer than 10 new units per month need $50,000, and those selling 10+ new units need $200,000. Auction dealers also require $200,000. The Board may accept a surety bond when a line of credit cannot be reasonably obtained.

Costs depend on which tier applies to your dealership. For the most common $25,000 used dealer bond, expect $250-$2,500 per biennial term (1-10%). A $10,000 motorcycle dealer bond starts as low as $100. The $50,000 new dealer bond costs $500-$5,000. Higher tiers like $100,000 or $200,000 bonds cost $1,000-$20,000. Your credit score, financial history, and industry experience determine your exact rate.

Hawaii uniquely requires either a secured line of credit from a federally insured financial institution OR a surety bond. The line of credit amounts differ from bond amounts: motorcycle dealers need $50,000 LOC vs. $10,000 bond, used dealers need $50,000 LOC vs. $25,000-$100,000 bond, and auction dealers need $100,000 LOC vs. $200,000 bond. The Board accepts a surety bond when a line of credit cannot be reasonably obtained.

Hawaii dealer licenses are biennial (2-year), expiring on June 30 of each even-numbered year regardless of when they were originally issued. Your bond must match this biennial period. The next renewal date is June 30, 2026. We send renewal reminders 90 days in advance to ensure no lapse in your bond or license.

The Motor Vehicle Industry Licensing Board, operating under the Hawaii Department of Commerce and Consumer Affairs (DCCA) Professional and Vocational Licensing Division, oversees all dealer licensing. The Board holds regular meetings and can investigate complaints, conduct hearings, and revoke licenses. Their office is located at 335 Merchant Street in Honolulu.

Yes. Approval is possible even with credit challenges. While excellent credit (750+) gets the lowest rates at 1-2% of the bond amount, we regularly approve applicants with credit scores in the 500-600 range. For higher bond tiers ($100K-$200K), expect rates of 5-15% with challenged credit.

Yes. Each physical dealership location must have its own separate license and corresponding surety bond. If you operate a used car lot in Honolulu and another in Hilo, you need two separate dealer licenses and two separate bonds. The bond amount for each location depends on that location's dealer type and sales volume.

If your surety bond expires or is canceled, your dealer license is automatically suspended. You cannot buy, sell, or exchange motor vehicles during the suspension period. If you fail to provide a replacement bond within 30 days, the Motor Vehicle Industry Licensing Board may revoke your license entirely. Reinstatement requires a new application, bond, and applicable fees.