Tennessee Auto Dealer Bond— $50,000 -- Fixed June 30 Odd-Year Expiration

The Tennessee Motor Vehicle Commission synchronizes all dealer bonds and licenses to a single biennial deadline: June 30 of odd-numbered years. Whether you obtained your license in October or March, your bond expires on the same June 30 date as every other dealer in the state. The next universal expiration is June 30, 2027, followed by June 30, 2029. This synchronized cycle means dealers licensed mid-cycle receive less than a full two years of coverage but still benefit from the simplified administrative calendar.

Tennessee auto dealer bonds ($50,000) cost $500-$5,000 per 2-year term. Excellent credit (750+) pays $500-$1,000 (1-2%). Good credit (680-749) costs $1,000-$2,000 (2-4%). Fair credit (620-679) ranges $2,000-$3,500 (4-7%). Lower credit may pay up to $5,000 (10%). Because it is a biennial bond, you pay one premium for the full term -- no annual renewal until June 30 of the next odd year.

Yes. All six TMVC dealer categories -- New Motor Vehicle, Used Motor Vehicle, Motor Vehicle Auction, Recreational Vehicle, Motorcycle, and Mobility -- require the identical $50,000 surety bond on Form IN-1316. No tiered amounts, no formulas, no volume-based adjustments. The license fee is $400 for all types except new vehicle dealers, who pay $400 per line make (manufacturer).

Under TCA 55-17-111, the bond covers two specific categories of consumer loss: (1) nonpayment of prepaid title, registration, or related fees and taxes, and (2) failure to deliver valid vehicle title certificates free and clear of prior owner interests and liens. The $50,000 is the aggregate limit per bond term.

Yes. Each dealership location -- including branch lots -- requires its own separate $50,000 surety bond and separate dealer license. A dealer with a main lot in Nashville and a branch in Memphis needs two $50,000 bonds, two licenses, and two facility inspections. Each location independently must meet signage, zoning, and facility requirements.

Tennessee requires permanent signage with letters at least 8 inches in height displaying the business name as registered with the Motor Vehicle Commission. The sign must be permanently installed (not a banner) and clearly visible from the public roadway. Failure to maintain proper signage can result in citation and potential license suspension during TMVC compliance inspections.

Anyone who sells, exchanges, or offers to sell or exchange more than 5 motor vehicles in one calendar year must have a TMVC dealer license. This applies to cars, trucks, RVs, motorcycles, and other motor vehicles, both new and used. Selling without a license is a Class A misdemeanor under TCA 55-17-114.

The TMVC requires a surety bond on Form IN-1316 from a licensed bonding company. However, per TCA 55-17-111, the Commission may accept a certificate of deposit (CD) as collateral to secure the bond. Letters of credit and cash deposits are generally not accepted as standalone alternatives.

Tennessee licenses and bonds renew biennially on June 30 of odd-numbered years. The TMVC sends renewal notices approximately 90 days before expiration. You must submit an updated bond and insurance certificate before approval. Renewals can be processed online through the TMVC portal. We send our own reminders well in advance to prevent any lapse.

Yes. Approval is possible even with credit challenges. The 2-year term means you lock in your rate until the next June 30 odd-year expiration. Even applicants with credit scores below 600 can typically secure approval. Rates for lower credit range from 5-10% ($2,500-$5,000 for the full biennial term).