Vehicle and vessel dealer bond cost
The Idaho Transportation Department requires vehicle and other vessel dealers who work in the state to post a surety bond. Dealers who sell motorcycles, UTVs, ATVs or snowmobiles need $10,000 of coverage. Wholesale dealers are mandated to file $40,000 surety bonds and dealers who sell other vehicle types need $20,000 of coverage.
These bonds are subject to underwriting, which means surety bond costs are determined based on the applicant’s credit report. With strong financial credentials, clients could pay as little as 1% when working with Surety Bonds.
Why this bond
Vehicle and vessel dealer bonds protect customers from fraudulent business transactions at the hands of dealers. By posting this bond, a dealer agrees to abide by all rules and regulations outlined in the Idaho Code, as well as those enforced by the Idaho Transportation Department and federal motor vehicle safety standards. Prohibited acts include, but are not limited to:
- Using any misleading advertising
- Knowingly purchasing or selling a stolen vehicle
- Engaging in business without a valid license
- Knowingly purchasing or selling a vehicle that has been altered or has a removed vehicle identification number
- Displaying for sale a vehicle that doesn’t have a title
If these or other laws are broken, a claim can be made against the bond to provide reparation for damages.
Vehicle and vessel dealer bond details
The bond form must indicate whether the applicant is a wholesale-only dealer, retail dealer or a dealer selling only motorcycles, ATVs, UTVs or snowmobiles. The dealership’s physical location must be listed on the bond form.
If the bond is to be canceled, the surety must provide 30 days of written notice to the Idaho Transportation Department Board of Directors. The surety remains liable for all claims filed against this bond during this period.
Become a motor vehicle dealer
Purchasing a vehicle and vessel dealer bond is just the first step in becoming a licensed dealer in Idaho. In addition to filing your bond, you must do the following to get your license:
- Submit a completed and notarized application
- Pay all necessary fees
- Acquire the certification for used and wholesale dealers
- Provide proof of business status
- Get zoning approval signed
- Obtain your employer identification number
- Complete a personal history form for each owner, director or member and salesperson
Apply for your surety bond
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