North Dakota Auto Dealer Bond— $25,000 + Salesperson License Required

North Dakota is one of the states that requires every person who sells or negotiates motor vehicle sales to hold an individual salesperson license (Form SFN 2873) in addition to the dealer license. This dual requirement means dealers must license both their business and each employee who interacts with customers on vehicle sales. The dealer bond covers all employees -- no separate bond is needed for salespersons. But each salesperson must apply individually through the NDDOT Motor Vehicle Division and renew annually.

North Dakota dealer licenses run on a strict calendar year cycle: January 1 through December 31. Renewal applications are due in December. If you apply mid-year, your first license term will be shorter but the full $25,000 bond is still required. Salesperson licenses follow the same January 1 - December 31 cycle. This is different from states like New Jersey (March 31) or Michigan (December 31 with different renewal timing).

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 with same-day processing.

All motor vehicle dealer types under NDCC 39-22 require the same $25,000 surety bond: New Motor Vehicle Dealer (requires franchise agreement), Used Motor Vehicle Dealer, Wholesale Dealer (dealer-to-dealer only), Motorcycle Dealer, Trailer Dealer, and Manufactured Home Dealer. There are no exemptions based on dealer type or volume in North Dakota -- the flat $25,000 applies to everyone.

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 the $50 license fee, the NDDOT reviews your application and schedules a facility inspection. Processing is generally faster than larger states due to lower application volume. If you need other bond types for your North Dakota business, you can <Link href="/" className="text-amber-400 underline hover:text-amber-300">view our complete lineup of surety bonds with real-time pricing</Link>.

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.

A lapsed bond results in automatic license suspension. You must immediately cease all vehicle sales operations. The surety company provides 30 days advance notice before cancellation takes effect. If your license expires past the December 31 deadline and is not renewed promptly, you may need to reapply as a new applicant. Salesperson licenses tied to the dealership are also affected by a dealer license lapse.

North Dakota's $25,000 matches South Dakota and Wyoming. Montana uses a tiered system from $5,000 to $50,000 based on dealer type. Minnesota requires $50,000 -- double ND's amount. The $25,000 flat bond keeps ND among the more affordable states in the Northern Plains region, with annual premiums starting around $250 for applicants with good credit.