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California Auto Dealer Bond



The Occupational Division of the California DMV requires a California auto dealer bond for dealers of both new and pre-owned dealerships which operate in the state. AmeriPro Surety Bonds works to provide you with the best pricing for your auto dealer bond. Call us at 844-589-9732.

California New Car Dealer Bond * California Used Car Dealer Bond * California Motorcycle Dealer Bond

California Auto Dealership Bond |

AmeriPro Surety Bonds | 844-589-9732




California Auto Dealer Bond




In California, the California Department of Motor Vehicle (DMV) Occupational Licensing Division regulates car dealerships, both new and used. They also regulate motorcycle dealerships.

The CA DMV requires one of two bond amounts to be posted before operations, regardless of whether the car dealership sells new or used vehicles.

The auto dealer bond runs, or is active, concurrent with the licensing period issued by the California DMV.  Thereafter, it must be renewed.

Dealerships who sell 25 vehicles and under; Motorcycle Dealerships



If you operate a new or used auto dealership and you sell 25 cars or less, annually, the amount of the new or used auto dealer bond is for $10,000.

Also, if your operate a motorcycle dealership, the $10,000 surety bond amount also applies.

Importantly, if your hobby or side-business is buying and selling vehicles, but less than 25 a year, you are also required to purchase this surety bond.  In effect, even without a plot of land, in California, you are a de facto car dealer for all intents and purposes.

Dealerships who sell more than 25 cars annually


For dealerships, both new and used, who sell more than 25 cars annually, the Occupational Licensing Division of the DMV requires a $50,000 California auto dealer bond to be posted with its office.

What is a California Auto Dealer Bond?


A California car dealer bond is a financial guarantee that a car dealership will abide by all laws and regulations in its dealing with the public.

As such, the bond is not an insurance policy for the dealership, but it is specifically designed to protect both the California DMV and the consumer.

Therefore, the bond can be considered, in a real sense, as an insurance policy purchased by the dealership on behalf of the public to protect consumers from potential acts of negligence or dishonest behavior on the part of dealership.



An Overview of the California Auto Dealer Business:



Applicants for a California auto dealer bond will want to thorough familiarize themselves with the application process.  An application which is incomplete will not only be processed by the Occupational Licensing Division, it will prevent you from operating or opening your dealership.

Fortunately, the OL (Occupational Licensing Division of the California DMV) has published an article on the application process which can be found here.

How much will a California Auto Dealer bond cost?


The price of a DMV motor vehicle new and used bond will depend on two important factors.

The first is the bond amount chosen, $10,000 or $50,000.

The second is the purchasers (also known as principal's) credit score.

For those with stellar credit, the cost of a car dealer bond can be a mere several hundred dollars annually.

We can take your surety bond application directly over the phone or send an application to you for completion.

About AmeriPro Surety Bonds


AmeriPro Surety Bonds is an agency whose exclusive concentration is surety bonds.

We provide contract, commercial, license & permit, and of course, new and used California auto dealer bonds in California and all 50 states.

Please Call us today at 844-589-9732.