Auto Dealer Bond Calculator
Calculate Your Motor Vehicle Dealer Bond Cost by State
Most auto dealer bonds cost $100-$500/year -- Instant approval available
Motor Vehicle Dealer Bond Cost Calculator
Instant approval - Most bonds issued same day
Auto Dealer Bond Costs by State
* Premiums shown are annual estimates. Actual rates depend on credit score and business history.
What Is an Auto Dealer Bond?
An auto dealer bond, also known as a motor vehicle dealer bond or DMV bond, is a surety bond required by your state's Department of Motor Vehicles (DMV) to obtain and maintain a dealer license. This bond protects consumers and the state against:
- Fraudulent business practices or misrepresentation
- Failure to transfer titles properly
- Not paying off liens on trade-in vehicles
- Selling salvage vehicles without proper disclosure
- Violating state motor vehicle dealer laws and regulations
Whether you operate a new car dealership, used car lot, wholesale dealer, or online auto sales business, you are required to obtain an auto dealer bond before your state will issue your dealer license.
Auto Dealer Bond Calculator FAQ
How much does an auto dealer bond cost?
Auto dealer bond premiums typically range from $100 to $500 per year for dealers with good credit. The premium is 1-5% of the required bond amount, which varies by state from $25,000 to $100,000. For example, a $50,000 bond in California would cost between $500 and $2,500 per year depending on your credit and business history.
What is an auto dealer bond?
An auto dealer bond (also called a motor vehicle dealer bond or DMV bond) is a surety bond required by your state to obtain and maintain a dealer license. It protects consumers from fraud, title issues, and violations of state motor vehicle laws. The bond guarantees that your dealership will operate in compliance with all applicable regulations.
Do all states require auto dealer bonds?
Nearly all states require auto dealer bonds to obtain a motor vehicle dealer license. Bond amounts range from $25,000 in states like Alabama and Florida to $100,000 in Arizona and Nevada. Texas requires a $50,000 bond. Use our calculator above to find your specific state requirement and estimated cost.
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