State Specific Motor Vehicle Dealer Bond
[rehabtabs] [rehabtab title=”Arizona”]
The State of Arizona requires a Motor Vehicle Dealer Bond for all motor vehicle dealers, title service companies, and automotive recyclers. This bond must be executed by an insurance or bonding company authorized to do business in the State of Arizona.
The surety bond amount varies by company type as follows: New Motor Vehicle Dealer Used Motor Vehicle Dealer Public Consignment Auction Dealer Bond amount: $100,000
Title Service Company Broker Wholesale Auto Auction Dealer Wholesale Motor Vehicle Dealer Bond amount: $25,000
Automotive Recycler Bond amount: $20,000
Additional Notes: With the exception of title service companies, all dealers must provide an original bond, no copies or facsimiles. In addition, a separate surety bond must be provided for each individual application as well as for each county in which the dealer/licensee has a place of business. A power of attorney for the attorney-in-fact must be attached to the bond. The bond must be signed by the individual, all partners (if a partnership) or one corporate officer (if incorporated). The surety bond is continuous and may be canceled only upon receipt of 60 days written notice to Dealer Licensing. Submit forms to: Dealer Licensing
Motor Vehicle Division PO Box 2100 Phoenix AZ 85001-2100 E-mail: email@example.com Phone: (602) 712-7571
[/rehabtab] [rehabtab title=”California”]
The Motor Vehicle Dealer Bond requirements in California are divided by dealership type. In order to obtain a dealer license, car dealerships in California must provide a $50,000 auto dealer bond.
For $10,000 California Motor Vehicle Dealer Bond is required for Motorcycle Dealers, ATV Dealers and Wholesale-Exclusive Dealers (with sales of under 25 vehicles annually).
California auto dealer surety bond form OL25
. Motorcycle Dealers, ATV Dealers and Wholesale-Exclusive Dealers Surety Bond Form OL 25B California auto dealer surety bond form instructions Submit forms to: Licensing Operations Division
Occupational Licensing Branch P.O. Box 932342 MS—L224 Sacramento, CA 94232-3420
[/rehabtab] [rehabtab title=”Florida”]
In the State of Florida, the surety bond amount required depends on the type of motor vehicle dealer. The surety bond amounts and required bond forms are as follows:
- For motor vehicle dealers, the requirement is an original $25,000 surety bond.
- For motor home dealers, the requirement is an original $25,000 surety bond.
- For recreational vehicle (RV) dealers, the requirement is an original $10,000 surety bond.
Failure to meet all of the licensing requirements, including, but not limited to obtaining the proper dealer surety bond, constitutes a second-degree misdemeanor and is punishable by up to six months in jail and/or fine of $500. According to the Florida DHSMV, such person will also be liable under civil law for violation of Florida’s Deceptive and Unfair Trade Practices Act, and be subject to fines of up to $5000 per violation, and may face a permanent injunction issued by a circuit court.
Florida Motor Vehicle Dealer Surety Bond Form 86020 Florida Mobile Home Dealer Surety Bond Form 86018 Florida Recreational Vehicle Dealer Surety Bond Form 86019 Submit forms to: Florida Department of Highway Safety and Motor Vehicles
Division of Motor Vehicles 2900 Apalachee Parkway Room A312, Mailstop #65 Tallahassee, FL 32399
[/rehabtab] [rehabtab title=”Georgia”]
In Georgia, only used car and used car parts dealers are required to obtain a surety bond. In addition to being registered and licensed, the Georgia State Board of Registration of Used Motor Vehicle Dealers and Used Motor Vehicle Parts Dealers require these dealers to purchase and maintain a $35,000 surety bond
The Board defines used motor vehicle dealers as “motor vehicle brokers, independent motor vehicle leasing agencies which sell or offer to sell used motor vehicles, used motor vehicle auction companies and pawnbrokers who sell motor vehicles to the public. Used parts license include used parts dealers, re-builders, and salvage dealers.”
Georgia Used Car Dealer Surety Bond Form Submit forms to: Georgia State Board of Registration
of Used Motor Vehicle Dealers & Used Motor Vehicle Parts Dealers Used Motor Vehicle Dealers Division P.O. BOX 13446
[/rehabtab] [rehabtab title=”Maryland”]
The State of Maryland has numerous Motor Vehicle Dealer Bond requirements for vehicle dealers. Maryland’s requirements are more complicated than most states. For example, the amount of the surety bond varies based on different factors such as how many vehicles are sold annually, the type of dealership (new car, used car, motorcycle, etc), and other factors.
For new car dealers, the bond requirements are $50,000 for up to 500 vehicles sold. The amount goes to $75,000 for 501-1000, $100,000 for 1001 to 2500, and $300,000 if sales are more than 2,500 vehicles. For used car dealers, the bond requirements are $15,000 for up to 250 vehicles sold. The amount goes to $25,000 for 251-500, $35,000 for 501 to 1000, $50,000 for 1001-2500, and $150,000 if sales are more than 2,500 used vehicles. For additional vehicle dealer bond requirements such as wholesale, motorcycle, trailer, and emergency vehicle dealers, please refer to the Maryland surety bond requirements document listed below.
Maryland Dealer Surety Bond Requirements
Maryland Dealer License Application
Maryland Wholesale Dealer License Packet
Submit forms to: Motor Vehicle Administration
6601 Ritchie Highway, N.E. Glen Burnie, Maryland 21062
[/rehabtab] [rehabtab title=”New York”]
Car dealers are related DMV businesses in the State of New York are required to provide a surety bond in an amount that is dependent on the number of vehicles sold.
It is important that the business name and mailing address on the surety bond are exactly the same as the business name and mailing address on the DMV facility license. Make sure that you write your Facility Number on the bond. Surety Bond Amounts
New car dealers must have a bond in the amount of $50,000. Used car dealers who sold more than 200 vehicles in the previous calendar year must have a bond in the amount of $25,000. Used car dealers who sold 200 or fewer vehicles during the previous calendar year must have a bond in the amount of $10,000.
New York Auto Dealer Surety Bond Form Submit forms to: Department of Motor Vehicles
PO Box 2700 Albany, NY 12220
[/rehabtab] [rehabtab title=”Texas”]
Surety bond requirements in the State of Texas are quite basic. Auto dealers are required to have a $25,000 surety bond for the duration of their two-year license. The bond term extends for the same length of time as the dealer’s license term.
Prior to 2007, dealer licenses (and thus surety bonds) were one year in duration. In 2007, the Texas Legislature passed House Bill 2651
, which mandated that all new license applicants be issued a two-year license as of September 1, 2008. This requirement extends to the following types of car dealers in Texas: motor vehicle dealers, motorcycle dealers, wholesale auto dealers, and wholesale auction dealers.
Texas Dealer Surety Bond Form (Sample) Submit forms to: Texas Department of Motor Vehicles
Motor Vehicle Division P.O. Box 2293 Austin, Texas 78768