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California Motor Vehicle Dealer Bond

California Motor Vehicle Dealer Bond

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Who Requires the Motor Vehicle Dealer Bond and Why Is It Needed?

Salesman. Motor Vehicle Dealer Bond for auto dealers or others who buy, sell, auction, or repair cars or other motor vehicles.

The California Department of Motor Vehicles requires dealers to post a dealer surety bond (Surety Bond of Dealer OL 25 or OL 25B) as part of the licensing process in order to conduct business in the state. The bond amounts (or penalty) are as follows:

  • $50,000 for car dealers
  • $10,000 for motorcycle dealers and all-terrain vehicle (ATV) dealers
  • $10,000 for wholesale-only dealers (less than 25 vehicles per year)

How Much Will My Surety Bond Cost?

Take 2 minutes to provide the basic information required to get the best rates for your California Motor Vehicle Dealer Bond. The quote request is free and there is no obligation to you. If you prefer, please call 1‐800‐608‐9950 to speak with one of our friendly bond experts. We can help guide you through the bonding process and identify the lowest cost in the market for your situation.

If you are interested in spreading out the cost of your bond over time, we can offer convenient financing plans for many types of surety bonds. More information will be provided with your quote.

What Does the Bond Protect Against?

The California dealer surety bond obligates the dealer (principal) to refrain from fraud, or any fraudulent practices or representation that results in monetary loss to a purchaser, seller, financing agency or governmental agency. Additionally, the dealer must comply with all conditions as defined in section 11711 of the Vehicle Code.

In the event of damages resulting from the dealer’s non-compliance with bond terms, the surety is bound to cover losses for harmed parties up to the full penalty of the bond. Furthermore, the principal is obligated to indemnify the surety for any damages paid.

What is Needed to Obtain My License?

The following is an overview of key California motor vehicle dealer licensing requirements.

  • OL 248A, New Dealer Application Check List or OL 248B, Used Dealer, Dealer-Wholesale Only, and Autobroker Application Check List
  • OL 12, Application for Original Occupational License, Part C
  • OL 21A, Original Application for Occupational License, Part A
  • OL 25, Surety Bond of Dealer or OL 25B, Surety Bond of Motorcycle Dealer, Motorcycle Lessor-Retailer, All-Terrain Vehicle Dealer, or Wholesale-Only Dealer (Less Than 25 Vehicles Per Year) or OL 25E, Deposit Agreement and Assignment (PDF)
  • OL 53, Authorization to Release Financial Information
  • OL 124, Certificate of Proposed Franchise (new automobile, commercial, motorcycle, all-terrain vehicle, motorhome, and recreational trailer dealers only)
  • OL 902, Property Use Verification for Vehicle Dealer's License OL29B, Application for Occupational License Personal History Questionnaire, Part B, Business Licensing Unit (Required for each person listed under ownership on form OL 12)
  • ADM 9050, Appointment of Director as Agent for Service of Process
  • Additional items may be needed and exact requirements may vary based on applicant, license type or obligee discretion. Please see obligee and state links in the Other Helpful Information and Links section below or contact the obligee directly for more information.




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