Alaska Motor Vehicle Dealer Bonds

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What is an Alaska Motor Vehicle Dealer Bond?

The State of Alaska requires a $100,000 motor vehicle surety bond for all authorized dealers of motor vehicles. The bond amount for those selling only motorcycles is $25,000. The surety bond is required under state laws for all dealers of motor vehicles, motorcycles, or buyer's agents doing business by negotiating on behalf of a buyer for the purchase of a motor vehicle from a motor vehicle dealer in the State of Alaska.

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Why is an Alaska Motor Vehicle Dealer Bond Required?

The surety bond provides a limited guarantee that the bonded principal makes payment to any person for any loss or damage they suffer by reason of fraud, fraudulent representations, any violation of AS 08.66.070, as amended, any violation of AS 08.66, as amended, or any violation of state or federal law. The damaged person has a personal right of action against the principal, and the person has a personal right of action against the surety on the bond.