Washington Auto Dealer Bond— $30,000 Per Business Location

Washington auto dealer bonds ($30,000) cost $300-$3,000 annually depending on credit. Excellent credit (750+) typically qualifies for $300-$600 (1-2%). Good credit (680-749) runs $600-$1,500 (2-5%). Fair credit ranges $1,500-$2,250 (5-7.5%). Remember: Washington requires a bond for each business location, so multi-location dealers need more than one bond; temporary subagencies are covered by the bond of the principal place of business (WAC 308-66-140(4)).

Yes. Under RCW 46.70.070, Washington requires vehicle dealers to maintain a $30,000 bond for each business location in the state, plus bond coverage for all temporary subagencies. This is a significant consideration for dealers operating from multiple lots. A $5,000 bond is required for miscellaneous vehicle dealers. Contact DOL Dealer Services at (360) 664-6466 to confirm your requirements.

Washington has two bond tiers: $30,000 for motor vehicle dealers and for mobile home, park trailer, and travel trailer dealers; and $5,000 for miscellaneous vehicle dealers. The bond form is officially called the "Vehicle and Vessel Dealer Business Bond." The principal name must exactly match both the business owner name and business firm name on the application.

Under RCW 46.70.070, three groups can file claims: retail purchasers who suffered a loss, consignors who are not dealers, and other motor vehicle dealers who transacted business with a wholesale dealer. The claim must be for a loss caused by a violation of Chapter 46.70 RCW. Claims are capped at the $30,000 bond amount per occurrence.

A temporary subagency is a short-term sales location — such as a tent sale, off-site event, or temporary lot — where a licensed dealer conducts business away from their primary location. Under RCW 46.70.070, Washington requires bond coverage for all temporary subagencies, and WAC 308-66-140(4) says they must be covered by the bond of the dealer's principal place of business, so no separate bond is needed for the event.

Washington does not require auto dealers to maintain comprehensive liability insurance on vehicles with dealer plates, which is unusual compared to most states. However, most reputable dealers still obtain liability coverage to protect their inventory and business operations. The $30,000 surety bond is the primary consumer protection requirement.

You can apply online through the DOL website or request a Dealer Application Packet by calling Dealer Services at (360) 664-6466 or Business Licensing Service at 1-800-451-7985. Submit your application with the bond, license fees, and plate fees. Mail checks to: State of Washington Business Licensing Service, PO Box 9034, Olympia, WA 98507-9034. Online applications accept credit/debit cards and E-check.

Yes. Washington's moderate $30,000 bond amount makes approval accessible for most credit profiles. We work with multiple carriers that specialize in higher-risk applicants. Even with credit scores below 600, a carrier may still write the bond; approval is often possible. Multi-location dealers with credit challenges may qualify for package pricing across their bonds.

Yes, but with restrictions. Under RCW 46.70.070, a surety can cancel a bond by providing written notice to both the dealer and DOL. The cancellation typically takes effect 30-60 days after notice, depending on the bond terms. DOL will suspend your dealer license if your bond lapses. We help dealers transition to new bonds before any cancellation takes effect.

Request a quote with the form on this page. A licensed agent submits your application to a Treasury-listed surety carrier; once the carrier issues your bond, file it as the requiring agency directs.

A licensed agent submits your application the same day it arrives; 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.