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Call us at 888.610.4474 info@hasslefreesuretybonds.com

Auto dealer bond cost

The Iowa Department of Transportation requires the state’s auto dealers to post a $75,000 surety bond before they can be licensed. Surety Bonds offers Iowa motor vehicle dealer bonds for different costs depending on each applicant’s credit report.

Give us a call at 888.610.4474 or submit a bond request to begin our fast and easy bonding process.

Why this bond

This type of surety bond ensures that principals (motor vehicle dealers) will comply with all Iowa statutes that regulate motor vehicle dealers and the state’s auto industry. Under this bond, if a dealer commits fraud, consumers can make a claim to recover losses. Prohibited acts according to this bond include, but are not limited to:

  • Failing to have an established salesroom
  • Willfully defrauding any retail buyer
  • Employing fraudulent devices, methods or practices
  • Using unfair methods of competition
  • Knowingly advertising any statement of fact which is untrue, misleading or deceptive
  • Knowingly advertising a used motor vehicle for sale as a new motor vehicle
  • Knowingly giving an incorrect certificate of title or failing to give a certificate of title to a purchaser after a vehicle is sold

Auto dealer bond details

The dealer number must be listed on the bond form, and the principal’s signature must be witnessed.Iowa motor vehicle dealer surety bonds are continuous unless otherwise cancelled. If the bond is to be canceled, the surety must provide the Iowa Department of Transportation with at least 30 days written notice.

Become a motor vehicle dealer

It is illegal for a person to act as a motor vehicle dealer in the state of Iowa without being legally licensed to do so. Prospective dealers must obtain a license issued by the Division. Applicants must:

  • Pay the required application fees
  • Complete all required hours of educational courses approved by the Division
  • Provide proof of a sales tax license
  • Be at least 18 years of age
  • Furnish a credit report as well as a background check
  • Submit all required license application forms

Apply for your surety bond

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