North Dakota Auto Dealer Bond$25,000 NDDOT Requirement

North Dakota auto dealer bonds ($25,000) cost $250-$2,500 annually based on credit. Excellent credit (750+) pays $250-$500 (1-2%). Good credit (680-749) costs $500-$1,000 (2-4%). Fair credit (620-679) ranges $1,000-$1,750 (4-7%). Lower credit may require up to $2,500 (10%). North Dakota's $25,000 bond is among the more affordable in the region.

Form SFN 2933 is the official North Dakota dealer surety bond form filed with the Department of Transportation, Motor Vehicle Division. It certifies that a $25,000 bond is in place with a surety company authorized to do business in North Dakota. This form must accompany your dealer license application (Form SFN 2872). We prepare and file this form on your behalf.

North Dakota issues several dealer license categories under NDCC 39-22: New Motor Vehicle Dealer (requires franchise agreement), Used Motor Vehicle Dealer, Wholesale Dealer (dealer-to-dealer only), Motorcycle Dealer, Manufactured Home Dealer, and Trailer Dealer. All motor vehicle dealer types require the same $25,000 surety bond. North Dakota also requires individual salesperson licenses for anyone selling vehicles on behalf of a dealer.

Yes. North Dakota is one of the states that requires individual salesperson licenses (Form SFN 2873) in addition to the dealer license. Each person who sells or negotiates the sale of motor vehicles must hold a valid salesperson license. Dealers must designate at least one licensed salesperson on their application. Salesperson licenses are issued by the NDDOT Motor Vehicle Division and renew annually.

The ND dealer licensing process typically takes 3-6 weeks. The surety bond is issued within 1 business day. After submitting your complete application (SFN 2872) with bond form (SFN 2933), insurance, and fees, the NDDOT reviews your application and schedules a facility inspection. Processing is generally faster than larger states. The $50 license fee is paid at application.

Yes. We offer North Dakota dealer bonds for all credit situations. The $25,000 bond amount is relatively low, making approval accessible even for applicants with credit scores in the 500s. Rates for lower credit typically range from 5-10% ($1,250-$2,500 annually). We work with multiple A-rated carriers to find competitive options for every situation.

North Dakota requires a permanent enclosed building with office space for record-keeping and customer transactions. The lot must be adequate to display vehicle inventory and have a permanent business sign with the dealer name visible from the road. Zoning must permit dealer operations. The NDDOT Motor Vehicle Division conducts an on-site inspection before approving your license. Dealers in rural areas should verify local zoning ordinances, as requirements vary by municipality.

ND dealer bonds renew annually. Most renewals are approved within 1 business day. The dealer license also renews annually — the license year runs January 1 through December 31, with renewal applications due in December. A lapsed bond results in automatic license suspension. Salesperson licenses must also be renewed annually alongside the dealer license.