Oregon Auto Dealer Bond— $50,000, Purchased Every Year

Annually. ORS 822.030(1)(g) requires that "the vehicle dealer shall purchase a bond or letter of credit under this subsection annually on or before each anniversary of the issuance of the vehicle dealer's certificate." The penal sum is set by ORS 822.030(1)(c)(B) at $50,000 for each year the certificate is valid. Your dealer certificate itself may cover a longer period, but the bond obligation renews every year -- budget for it annually, not once per certificate cycle.

Premium is a percentage of the $50,000 penal sum and is paid every year, because ORS 822.030(1)(g) requires the bond to be purchased annually. Excellent credit (750+) typically pays 1-2% per year. Good credit (680-749) runs 2-4%. Fair credit (620-679) runs 4-7%. Lower credit can reach 10%. Budget that figure every year for as long as you hold the certificate -- there is no multi-year Oregon dealer bond that covers you for one payment.

Form 735-0370 is the official Oregon dealer surety bond form. It certifies that a $50,000 surety bond is in place for the dealer certificate. Filed with the DMV Business Regulation Section alongside your dealer certificate application (Form 735-0365). The bond names the Oregon Department of Transportation as the obligee. We prepare and file this form on your behalf.

Oregon's DMV Business Regulation Section issues certificates for: New Vehicle Dealer (requires manufacturer franchise), Used Vehicle Dealer, Motorcycle Dealer (new and used), Moped Dealer, Recreational Vehicle (RV) Dealer, Manufactured Structure Dealer, and Vehicle Dismantler. Most require the $50,000 bond. There is one statutory exception: under ORS 822.030(1)(c)(A), a dealer exclusively in motorcycles, mopeds, Class I all-terrain vehicles or snowmobiles (or any combination of those) files a $10,000 bond instead. Oregon does not have a separate wholesale license.

Yes. All first-time dealer certificate applicants must complete a DMV dealer orientation class before receiving their certificate. The class covers Oregon motor vehicle laws, title and registration procedures, lemon law requirements, advertising rules, and dealer responsibilities. This is a one-time requirement -- renewal applicants are exempt.

Oregon requires a permanent commercial building (not a tent, mobile unit, or residence) with enclosed office space. Used vehicle dealers need minimum 1,500 square feet of dedicated display area. A permanent sign with the dealer name must be visible from the road during business hours. The lot must be improved (paved or graveled) with defined parking. Local zoning must permit dealer operations. DMV Business Regulation conducts an on-site inspection.

No. Oregon is one of only five U.S. states with no general sales tax. Vehicle buyers pay no state sales tax on purchases. This makes Oregon dealerships attractive to out-of-state buyers, though buyers registering in states with sales tax may owe tax in their home state. That is a genuine advantage for Oregon dealers, though it is unrelated to the bond, which is purchased annually like most states.

Yes. Applicants with credit scores below 600 can often secure approval through specialized programs. Rates for lower credit typically run 5-10% of the $50,000 penal sum, and because Oregon bonds are purchased annually that rate is re-quoted at each renewal -- a rate that improves as your payment history builds. We work with multiple Treasury-certified carriers to find the best rate.

Every year. ORS 822.030(1)(g) requires the bond to be purchased annually, on or before each anniversary of your certificate's issuance -- this is separate from the dealer certificate renewal cycle. We send renewal reminders ahead of each anniversary, and most renewals are approved within 1 business day with pricing updated to your current credit. Never let the bond lapse: ORS 822.030 lets the department cancel the certificate once it has notice of cancellation and no replacement bond.