Auto dealer bond cost
The Montana Attorney General requires auto dealers, franchise dealers, wholesale dealers, auto auction dealers, broker dealers and new manufactured home dealers to post surety bonds. Most of these bonds are for $50,000 worth of coverage, but franchise dealers who sell only street-legal motorcycles and quadricycles must post $15,000 surety bonds, while franchise dealers who sell only snowmobiles, non-street legal motorcycles and quadricycles and boats must post surety $5,000 bonds.
These bonds are subject to underwriting, so the amount you’ll pay for your bond depends on a review of your personal credit report. Bad credit? Don’t worry! We offers an exclusive bad credit bonding program through which we can approve 99% of all applicants.
Why this bond
Montana motor vehicle dealers bonds ensure that principals (motor vehicle dealers) conduct business in compliance with the requirements of the law of Montana. If the principal fails to act lawfully and ethically while on the job, a claim can be filed against the bond. If the claim is validated, the surety will cover any damages suffered by harmed consumers up to the full amount of the bond. The principal must then reimburse the surety for any damages paid out.
Motor vehicle dealer bonds in Montana remain in full force and effect until canceled. The surety can cancel the bond at any time by giving written notice of cancellation and the reason for cancellation to the Title and Registration Bureau in Deer Lodge, Montana, and to the principal. Cancellation becomes effective 30 days after the receipt of said notice.
Become a motor vehicle dealer
Specific licensing requirements vary depending on the type of motor vehicle dealer the applicant wishes to become. General licensing requirements include:
- submitting a completed Dealer License Application form
- posting a surety bond in the proper amount
- providing evidence of complying with all city/county requirements
- having a permanent non-residential building where sales are made and records are kept
- paying required licensing and registration fees
- and more
Take the first step toward becoming a licensed motor vehicle dealer in Montana by requesting your free bond quote now!
Apply for your surety bond
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