Pennsylvania Auto Dealer Bond— $20,000 for All 6 Dealer Classes

PennDOT's 6-10 week timeline is driven by the mandatory facility inspection. PennDOT will not schedule the enforcement officer inspection until they have your complete application package on file -- including your $20,000 surety bond and garage liability insurance certificate. After inspection, the registration goes through administrative review. Start your bond application first since the bond is one of the first items to line up, while the PennDOT process takes the bulk of the timeline.

Under 75 Pa.C.S. Section 1335 (Pennsylvania Vehicle Code), dealers applying to PennDOT for dealer registration plates must file the prescribed bond on Form MV-375; the standard dealer bond amount is $20,000 (confirm your amount with PennDOT and the State Board of Vehicles). The bond must be from a surety company authorized to do business in Pennsylvania. PennDOT requires the bond to be filed on Form MV-375, the department's approved bond form. Bonds filed on non-approved forms will be rejected.

Yes. PennDOT issues dealer registrations in six categories: New Vehicle Dealer (franchise required), Used Vehicle Dealer, Wholesale Vehicle Dealer (dealer-to-dealer only), Salvor/Salvage Dealer, Vehicle Auction, and Public or Retail Consignment dealer. Bond and fee requirements can differ by category, so confirm yours with PennDOT and the State Board of Vehicle Manufacturers, Dealers and Salespersons. New vehicle dealers must also provide manufacturer franchise documentation.

Pennsylvania uses the term "dealer registration" rather than "dealer license" -- a distinction unique to the Commonwealth. This is a formal legal distinction under the Pennsylvania Vehicle Code. When searching for forms or contacting PennDOT, use "dealer registration" for accurate results. The PennDOT bond form is MV-375 and the dealer registration plate application is MV-349, both referencing "registration" rather than "license."

PennDOT requires proof of insurance covering as many vehicles as the number of dealer registration plates you apply for (67 Pa. Code Chapter 53; Form MV-349 instructions). Most dealers also carry garage liability coverage; confirm limits with your insurer. Insurance is separate from your $20,000 surety bond. Proof of insurance is submitted with your dealer registration plate application. PennDOT will not schedule your facility inspection without both the bond and insurance on file.

Yes. Each physical dealership location must have its own separate dealer registration and corresponding $20,000 surety bond. If you operate multiple lots, each requires a separate Form MV-349, bond, insurance certificate, zoning approval, and facility inspection. PennDOT treats each location as a separate dealer registration. Multi-location operators should plan for $200-$2,000 per location annually in bond premiums.

Pennsylvania requires a permanent established place of business with an enclosed office area for conducting business with customers. You must have a permanent sign displaying the dealership name visible from the public roadway. The lot must have customer parking separate from display inventory. Your location must have proper commercial zoning approval from the local municipality or county. Residential locations are not permitted. A PennDOT enforcement officer verifies all requirements during the mandatory facility inspection.

A lapsed bond results in immediate suspension of your dealer registration by PennDOT. Your bond is continuous until canceled and renews automatically each year with a new premium. PennDOT sends renewal notices approximately 60 days before expiration. Never let your bond lapse. If your registration is suspended, you must cease all vehicle sales operations until the bond is reinstated and PennDOT confirms your registration is active again.

PennDOT issues dealer registration plates for dealer-owned vehicles used in the business. Dealer plates may be used on vehicles owned by the dealership for display, demonstration, testing, or delivery purposes. Each plate must be properly logged. Misuse of dealer plates can result in penalties and bond claims. PennDOT strictly enforces dealer plate regulations and violations are among the most common reasons for bond claims in Pennsylvania.

Pennsylvania's $20,000 dealer bond costs $200-$2,000 per year depending on your credit profile. Excellent credit (750+) typically pays $200-$400 annually (1-2%). Good credit (680-749) runs $400-$800 (2-4%). Fair credit (620-679) ranges $800-$1,400 (4-7%). Even applicants with challenged credit can get bonded at rates up to 10% ($2,000). The bond amount is the same $20,000 for all six PennDOT dealer categories. Each location requires its own bond, so multi-site dealers should budget per location. Use our <a href="/tools/calculator/auto-dealer-bond/" class="text-amber-400 underline hover:text-amber-300">auto dealer bond calculator</a> for a personalized estimate.

Apply online with your business information and credit details for prompt submission on your $20,000 PennDOT dealer bond. We place the bond on PennDOT Form MV-375 -- the only bond form the department accepts. You receive the original bond document to include in your MV-349 application package along with your proof of insurance, zoning certificate, sales tax license, and SP4-164 background check. Getting bonded first is critical because PennDOT will not schedule your facility inspection until the bond and insurance are on file. You pay only after your bond is approved. See our <a href="/how-to-get-a-surety-bond/" class="text-amber-400 underline hover:text-amber-300">step-by-step bonding guide</a> for the complete process.

Licensed Pennsylvania motor vehicle dealers. It is required by the Pennsylvania Department of Transportation (PennDOT) (75 Pa.C.S. 1335), as part of the dealer license. The bond amount is $20,000 for all six PennDOT dealer categories. Each location needs its own bond.

We submit complete applications to the carrier promptly; most quotes come back within one business day. The carrier decides approval and the final premium, and you pay only when your bond is issued.