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Auto Dealer Bond

What is an Auto Dealer Bond?

Auto dealer bonds are for dealerships which offer new and/or used cars, trucks, and SUV’s, and trailers.  Surety bond requirement usually also extend to motorcycles, RV’s, commercial trucks, and off road vehicles.

The auto dealer bond is a requirement – in some form – for dealerships in all 50 states. The dollar amount of dealer surety bonds may vary by state and nature of dealership as well as the dates for renewal, underlying prerequisites, and other requirements.

AmeriPro Surety Bonds offers the auto dealer bond in all 50 states, in whatever type or amount that you are required to purchase by law or statute.

Purpose of Dealership Bonding

Besides being required for licensing (you may not legally offer vehicles for sale without an active auto dealer surety bond in place), an auto dealership bond is designed to protect two main groups:

  • The licensing authority, in this case, the bond’s obligee, that is, the entity requiring the bond;
  • The consumers who purchase your vehicles.

The bond protects the consumer and the state where you operate — these others — from acts of fraud, theft, criminal malfeasance, wrongdoing and negligence committed by a licensed dealership in the course of their professional responsibilities.

Additionally, the auto dealer surety bond also protects from wrongful acts committed by employees, managers, and owners of your auto dealership.

The existence of the auto dealer bond allows those who can demonstrably prove financial harm to make a claim against your bond in an effort to recover or redress financial losses caused by your dealership.

But – -and this is important — your auto dealer bond is not insurance; it is a surety.

Since it is a surety and not insurance, any claims paid on your dealership bond (were that ever the case) are your legal liability to reimburse in full to the surety.

This includes all costs and fees in the settlement of the claim.

You’ll notice that the auto dealer bond is strictly for the protection of others; it does not protect you or your dealership at all.  It is however, an absolute prerequisite for licensing by the state entity.

What does an Auto Bond Cost?

The premium for the auto dealer bond will be determined by a number of factors.

These include:

  •  The amount of the surety bond required.  Sometimes, also, at which time of the year the bond is purchased;
  •  Information provided on an a surety bond application;
  •  Your credit score.

Typically, those with good credit may pay as little as 1% annually for the surety bond amount required.

Those with lower credit scores may pay substantially more; however, our agency will work to provide the best surety bond pricing regardless of current credit standing.

When do I need to Renew My Auto Bond?

For as long as your dealership remains active, a surety bond must be on file.

Some auto dealer bonds renew annually from the date of purchase; others expire at some particular date within a calendar year.

Regardless, your bond premium will renew annually.

About AmeriPro Surety Bonds

AmeriPro Surety Bonds provides auto dealer bonds and related surety bond whatever the amount required.  We thank you for your consideration (we know full well that you have many good surety choices) and we look forward to working with you. For personalized support, please call David today at 844-589-9732



Monday thru Friday


5:00 AM to 5:00 PM (PST)


David is great to talk with on the phone.  It is clear he lives to make sure everyone gets the right bond, fast, and at the best price.  Nice to have that personal touch!


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