Wisconsin Auto Dealer Bond$50K / $25K / $5K — Form MV2511

Wisconsin has three bond tiers under Chapter 218: retail motor vehicle dealers need a $50,000 bond; wholesale dealers, salvage dealers, auction dealers, and recreational vehicle dealers need a $25,000 bond; and moped/motorcycle dealers need only a $5,000 bond. All bonds use the same Form MV2511 from WisDOT. Alternatively, you can submit an Irrevocable Letter of Credit on Form MV1046 instead of a surety bond.

Costs vary by bond amount and credit: For the $50,000 retail dealer bond, expect $500-$5,000/year (1-10%). For the $25,000 wholesale/salvage/auction/RV bond, expect $250-$2,500/year. For the $5,000 moped/motorcycle bond, premiums start as low as $50-$150/year. Excellent credit (750+) typically qualifies for 1-2% of the bond amount across all tiers.

Form MV2511 is the official Wisconsin Department of Transportation "Dealer Bond" form required for all dealer types under Wisconsin Statutes Chapter 218. This single form covers all bond amounts ($50,000, $25,000, and $5,000) — you check the applicable dealer type on the form. The bond protects any aggrieved individual who suffers a loss due to dealer noncompliance. The form was last revised in February 2017.

Yes. Wisconsin allows dealers to submit an Irrevocable Letter of Credit (ILOC) on Form MV1046 as an alternative to the surety bond on Form MV2511. The ILOC must be for the same amount as the required bond ($50,000, $25,000, or $5,000 depending on dealer type). Most dealers choose the surety bond because it doesn't tie up capital the way a letter of credit does.

A Wisconsin dealer bond may be terminated by the surety providing 60 days written notice to the Wisconsin Department of Transportation. During this 60-day period, you must obtain a replacement bond or your dealer license will be suspended. We help dealers transition to new bonds smoothly before any cancellation takes effect to avoid license disruption.

Yes. Wisconsin wholesale dealers need a $25,000 bond — half the amount required for retail dealers. However, wholesale dealers can only sell to other licensed dealers, not directly to the public. If you plan to sell to both dealers and consumers, you need the $50,000 retail dealer bond. WisDOT has a detailed Wholesale Dealer Guidebook (updated June 2025) covering all specific requirements.

Yes. We work with carriers that accept challenged credit for all three Wisconsin bond tiers. The $5,000 moped/motorcycle bond is the easiest to obtain regardless of credit. The $25,000 wholesale/salvage/auction bond is also quite accessible. Even for the $50,000 retail bond, we have programs for applicants with credit scores below 600. Alternatively, consider the Irrevocable Letter of Credit option on Form MV1046.

Any aggrieved individual who suffers a loss as a result of dealer noncompliance with Wisconsin Statutes Chapter 218 can file a claim against your bond. The surety investigates and, if valid, pays up to your bond amount ($50,000, $25,000, or $5,000). You must then reimburse the surety for all amounts paid plus legal costs. Maintaining compliance with all WisDOT dealer regulations helps prevent claims.