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Auto dealer or body shop bond cost

Motor vehicle dealers, special equipment dealers, crushers and body shop professionals in Utah must post surety bonds in varying amounts prior to conducting business within the state. Applicants should verify their required bond amount with the state prior to bonding.

Because these bonds are subject to underwriting consideration, the price you’ll pay for your Utah surety bond depends not only on your required bond amount but also on a review of your personal credit report. Let our experts do all of the hard work for you when it comes to calculating how much you’ll pay for your surety bond.

Why this bond

By posting a Utah motor vehicle dealer, special equipment dealer, crusher or body shop surety bond, principals (dealers, crushers or body shop professionals) pledge to observe and comply with all requirements and provisions of the Motor Vehicle Business Regulation Act as provided by Chapter 3, Title 41 of the Utah Code Annotated. Specifically, this bond ensures that principals refrain from the following while conducting business:

  • fraud
  • fraudulent representation
  • violating subsection 41-3-301(1), which requires a dealer to submit or deliver a certificate of title or manufacturer’s certificate of origin
  • violating subsection 41-3-402(1), which requires payoff of liens on motor vehicles traded in

These bonds protect any consumer who is harmed by the principal’s unlawful and unethical business practices from financial loss up to the full bond amount. The principal must reimburse the surety for any damages paid out.

Motor vehicle dealer bond details

Utah motor vehicle dealer, special equipment dealer, crusher or body shop bonds remain in full force and effect until canceled or violated. The surety can cancel the bond by giving written notice of withdrawal to both the principal and the Motor Vehicle Enforcement Division Administrator. Cancellation becomes effective 60 days after the administrator receives the notice.

Applicants must indicate what license type they’re applying for (auto dealer, special equipment dealer, crusher or body shop). If applying for a motor vehicle dealer license, applicants must specify if they plan to sell new vehicles, used vehicles, new motorcycles, used motorcycles, trailers, etc. Applicants must also indicate the type of organizational structure of the business.

Become a motor vehicle dealer

Prospective auto dealers in Utah must obtain a license issued by the Division. To qualify for a license, applicants must:

  • fill out the application for dealer license
  • complete a standard FBI Fingerprint Card and Fingerprint Waiver for each owner, corporate officer or member
  • include a passport-type photo of each member
  • post a surety bond
  • supply a photo of the dealership location that shows the sign
  • secure a sales tax number issued to the dealership by the Utah State Tax Commission
  • attend an 8-hour training seminar
  • include a copy of franchise agreements (if applicable)

Apply for your surety bond

Get a FREE Utah motor vehicle dealer bond Quote Today! Click here to begin