Utah Auto Dealer Bond$75,000 or $10,000 — Form TC-450

Utah requires a $75,000 surety bond for new and used motor vehicle dealers and large trailer dealers under Utah Code 41-3-205. This is significantly higher than the national average of $25,000-$50,000. The higher amount provides greater consumer protection in Utah's active vehicle market. However, motorcycle, off-highway vehicle (OHV), and small trailer dealers only need a $10,000 bond — a critical distinction that can save qualifying dealers thousands in annual premiums.

Under Utah Code 41-3-205, a $10,000 corporate surety bond is required for motorcycle dealers, off-highway vehicle (OHV) dealers, small trailer dealers, and crusher licenses. All other dealer types — including new car, used car, special equipment, and large trailer dealers — must carry the full $75,000 bond. Both bond amounts use the same Form TC-450 filed with MVED. Verify your dealer category with MVED before applying.

For the $75,000 bond: expect $750-$7,500 annually (1-10% of bond amount) depending on credit. Excellent credit (750+) typically qualifies for $750-$1,500 (1-2%). For the $10,000 motorcycle/OHV bond: costs start at $100-$300 annually. The surety must have at least a B+ A.M. Best rating, which we ensure with all our carrier partners.

Form TC-450 is the official "Bond of Motor Vehicle Dealer, Crusher or Body Shop" form required by the Utah Motor Vehicle Enforcement Division (MVED). This form is used for all dealer bonds ($75,000 and $10,000), body shop bonds ($20,000), and crusher bonds. The bond must be filed as a corporate surety bond — individual sureties are not accepted. The form requires the surety company to be licensed in Utah with at least a B+ A.M. Best rating.

Yes. Under Utah Code 41-3-205, it is illegal to operate as a dealer without a current corporate surety dealer bond on file with MVED. Operating without a bond can result in license revocation, fines, and criminal penalties. Your bond must remain in effect continuously as long as you hold a dealer license. MVED actively enforces this requirement.

Yes, though the higher $75,000 bond amount means credit is more impactful on your premium. We work with multiple carriers that consider factors beyond credit score — business financials, industry experience, and collateral options. Even with challenged credit, approval is possible. For motorcycle/OHV dealers needing only $10,000, approval is generally easier and premiums are much lower regardless of credit.

Besides dealer bonds, MVED also requires body shop bonds ($20,000 on Form TC-450) and crusher bonds using the same form. The Bonded Motor Vehicle Business Application (Form TC-301) is used for the initial application. All bonds share the same surety requirements: corporate surety licensed in Utah with B+ or better A.M. Best rating.

Start by obtaining your surety bond on Form TC-450 — we issue these within 1 business day. Then complete Form TC-301 (Bonded Motor Vehicle Business Application) or Form TC-758 for additional locations. Submit to MVED with your insurance, tax license, and business registration. MVED will conduct a facility inspection. The process typically takes 4-6 weeks from application to license. Contact MVED for current processing times.