Dealer
Bond Requirements |
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| Alabama |
A $10,000 surety bond is required for all used motor vehicle dealers, rebuilders, reconditioners and wholesalers. A $25,000 surety bond is required for all new motor vehicle dealers. A $10,000 bond is required for all automotive dismantlers and parts recyclers.
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| Alaska |
$50,000 bond required; $25,000 for motorcycle dealers.
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| Arizona |
Surety bond of no more than $100,000 for each type of license for each county where dealer has established business; required for each location.
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| Arkansas |
Franchise dealers must post a $25,000 bond with the Arkansas Motor Vehicle Commission to obtain a license. Used car dealers must post a $25,000 bond with the State Police.
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| California |
$50,000 bond required.
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| Colorado |
A $30,000 bond must be posted upon application for license.
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| Connecticut |
Required; $5,000 for repairers and limited repairers; $20,000 for new and used vehicle dealers. Submitted in the name of the licensee prior to license issuance.
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| Delaware |
There are no bond requirements for dealers.
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| District
of Columbia |
A $10,000 bond is required; filed with the Department of Consumer Regulatory Affairs.
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| Florida |
All motor vehicle and mobile home dealers are required to file a $25,000 Surety Bond. An irrevocable letter of credit may be substituted for a motor vehicle dealer’s bond. Recreational vehicle dealers require a $10,000 bond. For more than four additional lots, MH dealers require $50,000 bond, and RV dealers require $20,000 bond.
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| Georgia |
A $20,000 bond is required of all vehicle dealers.
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| Hawaii |
Bond not required.
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| Idaho |
A $10,000 bond is required for dealers who sell only motorcycles, ATVs and snow machines; $20,000 for all others.
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| Illinois |
$20,000 for 36 months.
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| Indiana |
Bond not required.
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| Iowa |
A $50,000 motor vehicle or mobile/manufactured home retailer Surety Bond must be filed with the Department of Transportation on annual basis. $25,000 Travel Trailer Dealer Surety Bond.
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| Kansas |
New and Used Dealer - $30,000 required, all others optional.
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| Kentucky |
$15,000 may be required.
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| Louisiana |
A $20,000 bond for new vehicle dealers; $10,000 for used vehicle dealers.
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| Maine |
Required for all dealers except light trailer and equipment dealers. Bond amount is established by the number of vehicles sold by the dealership: |
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Vehicles Sold |
Bond Limits |
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0-50 |
$5,000 |
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51-100 |
$10,000 |
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101-150 |
$15,000 |
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151-200 |
$20,000 |
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201 and over |
$25,000 |
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| Maryland |
Based upon sales volume, surety is required for all dealers.
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| Massachusetts |
Class II dealers must post $25,000 bond.
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| Michigan |
$10,000 bond required.
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| Minnesota |
A $50,000 must be filed by all dealers; $5,000 for boat, snowmobile, trailer and motorized bicycle dealers.
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| Mississippi |
A $15,000 Designated Agent’s Surety Bond is required for all licensed dealers. Filed with the application for a dealer’s license.
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| Missouri |
A $25,000 Corporate Surety Bond.
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| Montana |
Franchised dealers, used car dealers, recreational vehicle dealers, auto auctions, wholesalers and trailer dealers who sell mobile homes, house trailers and commercial trailers are required to post $50,000 bond. Motorcycle dealers must post $15,000 bond.
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| Nebraska |
$25,000 bond is required.
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| Nevada |
A $50,000 Surety Bond is required.
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| New
Hampshire |
A $20,000 to $10,000 depreciating bond, or a $100,000 blanket bond through the New Hampshire Automobile Dealers Association. The two dealer categories are Bonded and Licensed. Bonded dealers are not issued dealer plates.
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| New
Jersey |
A $10,000 Surety Bond is required.
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| New
Mexico |
A $20,000 corporate Surety Bond is required for auto dealers, salvage dealers, manufacturers, mobile home dealers and motorcycle dealers. A $12,500 bond is required for motorcycle dealers; no bond for boat dealers.
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| New
York |
Dealers selling 200 vehicles or fewer in the previous calendar year require a surety bond in the amount of $10,000. Dealers selling more than 200 vehicles in the previous calendar year require a surety bond in the amount of $25,000. New dealer applications are required to obtain a $50,000 surety bond.
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| North
Carolina |
A $50,000 indemnity bond.
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| North
Dakota |
All motor vehicle dealers are required to maintain a $25,000 Surety Bond with the department. All mobile home trailer and motorcycle dealers must maintain $10,000 surety bond.
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| Ohio |
Not required of certain new and used motor vehicles. 25,000 for title defect bond statute. Dealers in business 3 years or less are required to have a bond to sell vehicles without title present. After 3 years in business, they may join the OH Title Defect Rescission Fund. Call 800-364-8833 for bonds and/or more information.
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| Oklahoma |
$15,000 bond on used car dealer,
$10,000 bond is required on new car dealers,
$25,000 on wholesale dealers, and
$30,000 on manufactured home dealers.
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| Oregon |
A $40,000 for each year the certificate is valid.
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| Pennsylvania |
A $20,000 bond is required by dealers for most dealer categories.
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| Rhode
Island |
All dealers must post a $15,000 Surety Bond with the Dealers License Commission.
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| South
Carolina |
A $30,000 surety bond is required for all dealers except wholesale Auto Auction. Motocycle only and Travel Trailer only.
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| South
Dakota |
Required. Amounts are: $25,000 bond for new and used vehicle dealers; $5,000 for motorcycle dealer; $10,000 for trailer dealers (required only for dealers who sell trailers weighing over 2,000 lbs.); $25,000 for mobile home dealers; $5,000 for snowmobile dealers.
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| Tennessee |
Bond is filed with Motor Vehicle Dealer Commission.
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| Texas |
A $25,000 surety is required for motor vehicle, motorcycle and wholesale auction dealers for the licensed period unless the dealer is a franchised dealer or trailer dealer.
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| Utah |
Required. A $50,000 corporate surety bond for new or used vehicle dealers. A $1,000 corporate surety bond for new or used motorcycle or small trailer (750 lbs. unladen weight or less) dealers.
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| Vermont |
Bond requirements. New and used car dealers must provide bond based on number of sales and must have real estate value of not less than $5,000 or more than $15,000.
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| Virginia |
Original licensees are required to furnish $25,000 bond for the first three years in business. Bond required until dealership has three consecutive years without a claim against the bond or fund.
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| Washington |
$30,000 for motor vehicle dealers; $30,000 for mobile homes and travel trailer dealers. $5,000 for miscellaneous dealers.
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| West
Virginia |
A $10,000 bond is required for all dealers. Renewal licenses require a new Dealer Surety Bond (Form MV-126-DS-P).
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| Wisconsin |
A $5,000 to $100,000 bond may be required, if there is reason to doubt the financial responsibility or compliance of dealership.
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| Wyoming |
A $25,000 Dealer Bond is required at the time of application for a license.
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