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Motor Vehicle Dealer Bonds


Motor Vehicle Dealer Bond Information

A Motor Vehicle Dealer Bond (sometimes called an auto dealer bond, DMV Bond, MVD bond, or car dealer bond), guarantees that the new or used auto dealer complies with all applicable federal, state, and local laws, tax, licensing guidelines and other conditions pertaining to managing a motor vehicle dealership. The surety bond protects consumers in the event the dealer (surety bond customer, or principal) engages in fraudulent practices, misrepresentation or other wrongful acts.

Some examples of a dealer's actions that may result in third party damages and a surety bond claim include:

  • Delivering an invalid or fraudulent certificate of title
  • Neglecting to pay motor vehicle fees
  • Misrepresentation or other unethical business practices
  • Failure to make sales tax payments to the state government

Motor Vehicle Dealer Bonds by State

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