Idaho Auto Dealer Bond— $20K Retail / $40K Wholesale — Inverted

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, and reversed the typical pattern seen in most other states where wholesale bonds are equal to or lower than retail.

Idaho has three bond tiers under Idaho Code Title 49, Chapter 16. 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. 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%.

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.

ITD 3170 is the official Application for Vehicle or Vessel Dealership License issued by the Idaho Transportation Department. You submit it with your surety bond, liability insurance certificate, business entity documentation from the Secretary of State, three credit references, county treasurer tax clearance, and zoning approval. If hiring salespeople, also submit Form ITD 3171 for each. Processing typically takes 2-4 weeks.

Yes. Many dealerships hold both licenses to maximize flexibility — selling to the public under the retail license and to other dealers under the wholesale license. However, you need separate bonds for each: $20,000 for retail and $40,000 for wholesale, totaling $60,000 in bond obligation. The premium cost of both is still a fraction of the combined face amounts.

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.

Licensed Idaho motor vehicle dealers. It is required by the Idaho Transportation Department (Idaho Code Title 49, Chapter 16), as part of the dealer license. The bond amount is $20,000 for retail dealers, $40,000 for wholesale-only dealers and $10,000 for motorcycle, ATV, UTV and snowmachine dealers.

Request a quote with the form on this page. A licensed agent submits your application to a Treasury-listed surety carrier; once the carrier issues your bond, file it as the requiring agency directs.

We submit complete applications to the carrier promptly; most quotes come back within one business day. The carrier decides approval and the final premium, and you pay only when your bond is issued.