How to get a Car Dealer Surety Bond

What is a Car Dealer Surety Bond?

A car dealer surety bond is a surety insurance product which most often protects a consumer from harm caused by the car dealer’s failure to follow the rules and regulations which govern the auto dealer industry.  However, the actual obligation will vary by state and car dealer bond form.  These bonds are most often required on the state level prior to an individual or company obtaining the car dealer license.  In some states, the bond required must match the license type of the automotive dealer such as Florida which requires a $25,000 surety bond depending on the license type which can be wholesale dealerships, new auto dealers, and used car lots.

View our Auto Dealer Bond page for more information on bond costs and requirements for your state.

How much does a Car Dealer Surety Bond cost?

The cost of a car dealer bond will vary depending on several factors including, but not limited to: the personal credit score of the owners, prior surety bond claims, and related experience.  Owners of a motor vehicle dealership with excellent credit can expect to pay 1% of the surety bond amount needed.  Individuals seeking a bad credit motor vehicle dealer bond can expect to pay anywhere between 9% of the bond.  In rare instances where serious credit issues are indicated on the personal credit report, applicants may be required to pay more.  Additionally, these bonds can be purchased for two and three year terms which reduces the bond cost by 20% per year.

The easiest way to determine your dealer bond cost is to apply online.

Which states require a Motor Vehicle Dealer Bond?

There are many states which require a motor vehicle dealer surety bond in order to obtain a dealership license.  Our most popular states for car dealer bonds are:

Florida, Georgia, Washington, and Alabama

However, there are many more states which require surety bonds for car dealers.  You can find the specific bond needed for your license by visiting our Surety Bonds by State page.

How do I apply for a Car Dealer Bond?

First, click anywhere you see “Apply Now” or “Apply Online”.  This will take you to our online surety bond application.  Second, insert the basic information about your car dealership and its owners.  Third, submit your application and receive your surety bond quote in minutes.

How long will take to receive my car dealer surety bond?

You can receive a copy of your bond via email immediately after we receive payment for your bond.  The bond will then be mailed to your address by the method of your choosing.  Need your bond tomorrow?  Select the overnight shipping option and have it by the next business day!