Montana Auto Dealer Bond— $50K / $15K / $5K by Vehicle Type

Montana requires a "continuous" surety bond, meaning the bond has no fixed expiration date. It remains in force indefinitely until the surety or the dealer actively cancels it. This differs from states that require annual or biennial bonds. You still pay a premium each year, but the bond document filed with the DOJ never needs to be replaced for renewal purposes. There is no gap between terms and no re-filing with the state. If the surety cancels, the MVD must be notified and your license may be suspended.

Montana sets bond amounts based solely on the types of vehicles you sell, not whether they are new or used and not based on sales volume. The $50,000 bond covers cars, trucks, vans, buses, trailers over 500 lbs, motor homes, manufactured homes, brokers, wholesalers, and auctions. The $15,000 bond is for dealers selling only street-legal motorcycles and quadricycles. The $5,000 bond is for dealers selling only snowmobiles, non-street-legal motorcycles, and boats.

Yes. If you sell only snowmobiles, non-street-legal motorcycles/quadricycles, or boats and personal watercraft, your bond requirement is just $5,000 — the lowest dealer bond tier in Montana and one of the lowest in the country. With good credit, the annual premium can be as low as $50-$100. However, if you add any other vehicle types (cars, trucks, trailers, etc.) to your inventory, you must upgrade to the $50,000 standard bond.

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 is one of only five states with no general sales tax. This means Montana dealers do not need a sales tax permit, sales tax bond, or sales tax registration -- simplifying the licensing process compared to most other states. Combined with the low $30.90 license fee, Montana has one of the most affordable dealer licensing processes in the country.

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.