Auto Dealer Bonds
Auto Dealer Bonds—also known as Motor Vehicle Dealer Bonds—are essential for anyone looking to operate a car dealership legally in the United States. Whether you are opening a new or used dealership, most states require this type of surety bond as part of the licensing process. At Blaikie Group, we help auto dealers across all 50 states secure the bonds they need—quickly, affordably, and hassle-free.
What is an Auto Dealer Bond?
An Auto Dealer Bond is a type of surety bond that protects consumers and state agencies from fraudulent or unethical practices by licensed auto dealers. It ensures that the dealer complies with state laws, properly handles title transfers, pays taxes and fees, and honors the terms of the sale. In simple terms, it holds dealers accountable and provides financial protection to customers and regulatory bodies if the dealer fails to meet their legal obligations.
This bond is not an insurance policy for the dealer—it’s a financial guarantee to the public. If a claim is filed and validated, the surety company pays the claim up to the bond amount, and the dealer is then responsible for reimbursing the surety.
Who Needs an Auto Dealer Bond?
Most states require Auto Dealer Bonds for anyone applying for a dealer license, including:
- New Car Dealers
- Used Car Dealers
- Wholesale Vehicle Dealers
- Motorcycle or Powersport Dealers
- RV and Trailer Dealers
- Auto Auctioneers or Rebuilders
Even if your business sells just a few vehicles per year, your state may still require you to be bonded. Each state has its own licensing board and bonding regulations, which can vary in required bond amounts, renewal terms, and application procedures.
How Much Does an Auto Dealer Bond Cost?
The cost of an Auto Dealer Bond depends on several factors, including the state you operate in, the required bond amount, and your personal credit history. Bond amounts typically range from $10,000 to $100,000, with premiums (what you actually pay) usually falling between 1% and 10% of the bond amount per year. For example, a $50,000 bond might cost as little as $500 annually for applicants with good credit.
At Blaikie Group, we leverage our high-volume relationships with top-rated surety companies to secure the lowest possible rates for our clients. Even if you have less-than-perfect credit, we work hard to find affordable solutions that meet your state’s requirements.
Why Work with Blaikie Group?
Blaikie Group is one of the nation’s largest producers of surety bonds, including thousands of Auto Dealer Bonds issued every year. We understand the urgency, compliance concerns, and licensing pressures dealers face—and we make it our mission to simplify the bonding process so you can stay focused on growing your business.
- #1 Bond Writer: Trusted by auto dealers nationwide
- Free Quotes: Get bonded fast with no obligation
- Lowest Rates: Our volume allows us to offer lower premiums
- Dedicated Claim Specialists: We advocate for you if a claim arises
- Nationwide Service: We serve all 50 states with state-specific expertise
Examples of State-Specific Bond Requirements
Each state sets its own bonding rules. Here are a few examples of bond requirements across the U.S.:
- California: $50,000 bond required for retail dealers
- Florida: $25,000 bond required for independent dealers
- Texas: $50,000 bond for all types of vehicle dealers
- New York: Bond amounts range from $20,000 to $100,000 based on annual volume
- Georgia: $35,000 bond required for both new and used car dealers
Our team will walk you through the exact requirements based on your location, license type, and business size.
How to Apply for an Auto Dealer Bond
Getting bonded with Blaikie Group is fast and simple. Here’s how it works:
- Request a free quote by submitting our online form or calling our office.
- We’ll review your credit and licensing details to match you with the best rate.
- Once approved, you’ll receive your bond immediately—ready to file with your licensing agency.
Need to renew your bond? We make the renewal process just as smooth with automatic reminders and continued access to competitive rates.
Get Started Today
Don’t let paperwork or uncertainty slow down your dealership license approval. Blaikie Group is ready to help you get bonded quickly, affordably, and in full compliance with state regulations. With our unmatched expertise, volume-based pricing, and responsive support, there’s no better choice for your Auto Dealer Bond needs.
Call us now to speak with a bond expert or request your free quote online. We’ll help you take the wheel with confidence and get your business on the road to success.