Montana Auto Dealer Bond$50,000 Standard / Tiered by Type

Montana has a tiered bond system under MCA §61-4-101. The standard $50,000 bond applies to dealers selling cars, trucks, vans, buses, trailers (over 500 lbs unladen), motor homes, and new manufactured homes. Street-legal motorcycle and quadricycle-only dealers need a $15,000 bond. Dealers selling only snowmobiles, non-street-legal motorcycles/quadricycles, and boats need a $5,000 bond. The bond amount is based on the types of vehicles you plan to sell.

For the $50,000 standard bond, expect $500-$5,000 annually. For the $15,000 motorcycle bond, expect $150-$1,500. For the $5,000 boat/snowmobile bond, expect $50-$500. With excellent credit (750+), rates start at 1-2% of the bond amount.

Form MV25 is the official 5-page Dealer License Application issued by the Montana Department of Justice, Motor Vehicle Division. This is the primary application form for all dealer types — including dealers, brokers, wholesalers, and auto auctions. It must be completed in full and submitted with your surety bond, zoning verification, and other required documents to the MVD.

Montana requires a "continuous" surety bond, meaning the bond does not have a fixed expiration date. It remains in effect until cancelled by the surety or the dealer. This differs from states that require annual bonds. However, your surety company will still charge an annual premium. If your bond is cancelled, the MVD must be notified and your dealer license may be suspended.

Montana licenses a wide range of vehicle dealers under MCA §61-4-101, including car, truck, van, and bus dealers (new and used), trailer dealers (trailers over 500 lbs unladen weight), motor home dealers, motorcycle and quadricycle dealers, boat and personal watercraft dealers, snowmobile dealers, special mobile equipment dealers, manufactured home dealers, auto brokers, wholesalers, and auto auction operators.

Montana requires a permanent non-residential building where sales are made and business records are kept. The lot must comply with all local city and county zoning requirements, evidenced by written verification from the local zoning authority. Home-based dealerships are not permitted. The DOJ will verify your location meets all requirements before issuing the license.

The Montana dealer license and application fee is $30.90 — one of the lowest in the country. Wholesaler licenses are even less: $5 application fee plus $25 license fee. This low fee structure, combined with Montana's no-sales-tax environment, makes it an attractive state for dealer operations. However, the surety bond is the primary upfront cost.

Yes, we secure Montana dealer bonds for all credit situations. The $50,000 standard bond can be obtained even with lower credit scores, though rates will be higher. For the smaller $15,000 and $5,000 bonds, approval is even easier since the surety's risk exposure is lower. Approval is possible even with credit challenges.