Idaho Auto Dealer Bond$20,000 Retail / $40,000 Wholesale

Idaho has three bond tiers. Retail dealers who sell to the public need a $20,000 bond. Wholesale-only dealers who sell exclusively to other licensed dealers need a $40,000 bond (effective July 1, 2015). Motorcycle, ATV, UTV, truck camper, and snowmachine dealers need a $10,000 bond. Your bond must be issued by a corporate surety licensed to do business in Idaho.

For the $20,000 retail dealer bond, expect $200-$2,000 annually (1-10% of the bond amount). The $40,000 wholesale bond costs $400-$4,000. The $10,000 motorcycle/ATV bond starts at just $100. Your exact rate depends on personal credit, financial strength, and industry experience. Excellent credit (750+) gets the lowest rates at 1-2%.

ITD 3170 is the official Application for Vehicle or Vessel Dealership License issued by the Idaho Transportation Department. This is the primary form you submit along with your surety bond, insurance, and other documentation to obtain your Idaho dealer license. You can download it from the ITD website or request it from the Division of Motor Vehicles.

Idaho's $40,000 wholesale bond is double the retail bond because wholesale transactions involve higher dollar volumes with less consumer oversight. When dealers sell exclusively to other dealers, the potential for title fraud, odometer tampering, and financial loss is magnified. The higher bond provides greater protection for the trade. This increase took effect July 1, 2015.

Yes, Idaho allows cash or a certificate of deposit as an alternative to a surety bond. However, the deposit remains tied up until five years after the dealership goes out of business. Most dealers choose a surety bond because it costs only 1-10% of the bond amount annually and does not freeze your capital.

Idaho requires liability insurance with minimums of $25,000 for bodily injury or death per person, $50,000 for two or more people, and $15,000 for property damage. This is separate from your surety bond. You also need insurance covering your business premises and all vehicle inventory.

Submit Form ITD 3170, your surety bond, liability insurance certificate, business entity documentation from the Secretary of State, three credit references, county treasurer tax clearance, and zoning approval to the Idaho Transportation Department. If hiring salespeople, submit Form ITD 3171 for each. Processing typically takes 2-4 weeks.

A retail license allows you to sell vehicles directly to the public and requires a $20,000 bond. A wholesale license restricts you to selling only to other licensed dealers and requires a $40,000 bond. You cannot sell to consumers with a wholesale-only license. Many dealerships hold both licenses to maximize flexibility.