Motor vehicle dealer bond cost
The Motor Vehicle Industry Licensing Board of Hawaii requires all motor vehicle dealers to post a bond prior to engaging in business. This bond has a varying amount. Bond amounts are determined by:
- The type of vehicles sold
- The amount of vehicles sold
Bond amounts for new vehicle dealers:
- $200,000 – if you annually sell 10 or more new vehicle units per month
- $50,000 – if you annually sell less than 10 new vehicle units per month
Bond amounts for used motor dealers:
- $100,000 – if you annually sell 60 or more motor units per month
- $25,000 – if you annually sell 60 or more motor units per month
Motorcycle and motor scooter dealers must attain a bond in the amount of $10,000. This specific bonds type is subject to underwriting. This means that bond premiums are based on the applicants personal credit report.
Bad credit? No problem! We offer a bad credit program specifically for you! Contact an agent for more information.Give us a call at 888.610.4474 or submit a bond request to begin our fast and easy bonding process.
Why this bond
HI motor dealer bonds exist to protect customers from fraud in connection with the purchasing, negotiating and selling of motor vehicles. By posting a bond, motor vehicle dealers agree to abide by all rules and provisions of Chapter 437 of the Hawaii Revised Statutes.
Motor vehicle dealer bond details
Bonds may be canceled by the surety if a cancellation notice is submitted in writing to the State of Hawaii and the principal 30 days prior to the given cancellation date.
Become a motor vehicle dealer
Dealers must be licensed prior to conducting business. Applications must be accompanied by the following documents:
- Self-inspection report
- Photographs of your buildings display
- Rental or lease agreement
- Surety bond
- Financial statement
- Appropriate fees
- And more
All licenses are subject to a biennial renewal. Licenses must be renewed by June 30 of even-numbered years.
Apply for your surety bond
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