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Motor vehicle dealer bond cost

California ’s Department of Motor Vehicles requires motor vehicle dealers to post $50,000 surety bonds prior to conducting business within the state. Motorcycle dealers, motorcycle lessor-retailers, ATV dealers and wholesale-only dealers who sell less than 25 vehicles per year must post $10,000 surety bonds.

These bonds are subject to underwriting consideration, so the price you’ll pay depends on a review of your personal credit report. Bad credit? No problem! Surety Bonds  offers an exclusive bad credit bonding program through which we approve 99% of all applicants for the surety bonds they need quickly and easily. Request a free quote on your California auto dealer bond now!

Contact one of our surety specialists to receive a free, personalized bond quote within 1 business day of applying. Call 888.610.4474, or click here, to begin the bonding process.

Why this bond

By posting a California dealer surety bond, principals (dealers) pledge to refrain from practicing fraud or making any fraudulent representation that causes a monetary loss to a purchaser, seller, financing agency or governmental agency. Specifically, these bonds ensure that principals conduct business in compliance with the conditions listed in section 11711, which is also referred to as the Vehicle Code.

If the principal fails to comply with these terms, the surety will cover damages to harmed parties up to the full penal sum of the bond ($50,000 or $10,000, respectively). The principal must reimburse the surety for all damages paid out.Purchasing the California auto dealer bond you need is fast and easy when you work with the experts at Surety Bonds.

Motor vehicle dealer bond details

Auto dealer bonds in California remain in full force and effect and run concurrently with the license period for which the license is granted.

The surety can cancel the bond in accordance with Article 13, Chapter 2, Title 14, Part 2 of the Code of Civil Procedure.

Some surety underwriting companies might require specific information, including the dealer’s license number and the length of time the dealer has been in business.

Become a motor vehicle dealer

To become a licensed vehicle dealer in California , applicants must submit the following forms:

  • OL 248A New Dealer Application Check List OR OL 248B Used, Dealer, Dealer-Wholesale Only, and Autobroker Application Check List
  • OL 12 Application for Original Occupational License, (Part C)
  • OL 21A Original Application for Occupational License, (Part A)
  • OL 25 Surety Bond of Dealer
  • OL 53 Authorization to Release Financial Information
  • OL 124 Certificate of Proposed Franchise
  • OL 902 Property Use Verification for Vehicle Dealer’s License
  • And more

The following fees are required:

  • $175 nonrefundable original application fee
  • $1 Family Support Program fee
  • $100 Autobroker fee
  • $70 for each branch location
  • $300 New Motor Vehicle Board Fee
  • $70 for each dealer plate
  • $72 for each motorcycle plate

More licensing information can be accessed from the Additional information section of this page.Take the first step toward becoming licensed in California by purchasing your motor vehicle dealer bond now!

Apply for your surety bond

Get a FREE Motor Vehicle Dealer Bond Quote Today! Click here to begin


Additional information