Skip Navigation

Georgia Motor Vehicle Dealer or Motor Vehicle Parts Dealer Bond

What is a Georgia Motor Vehicle Dealer or Parts Dealer Bond?

An auto dealer surety bond is a licensing requirement for all used motor vehicle dealers and vehicle parts dealers. The Georgia Board of Used Motor Vehicles will not issue your license until you have a surety bond (auto dealer bond) on file.

An auto dealer bond is a type of insurance contract acting as a personal guarantee that you will follow all Georgia dealership rules, requirements, tax laws, and service your customers with honest and ethical business practices.

When you purchase an auto dealer bond, you're making this guarantee to the Department of Used Motor Vehicles and your customers.

Get a Free Quote for Your Georgia Motor Vehicle Dealer Bond Today

Used Motor Vehicle Dealer Bond

$35,000 Bond

Expires 9/30 in Even-numbered Years

Used Motor Vehicle Parts Dealer Bond

$10,000 Bond

Expires 12/31 in Odd-numbered Years

Can't find what you need?

Let our bond experts help!

Get Started »
No obligation, takes 2 minutes

If you'd prefer, call us at 1-800-608-9950

Who Is Required To Purchase an Auto Dealer Bond In Georgia?

Only used vehicle dealers and motor vehicle parts dealers are required to purchase an auto dealer bond as a licensing requirement.

Georgia has some unique laws about what is considered a motor vehicle. According to Georgia law a motor vehicle or car is:

"...every vehicle which is self propelled and required to be registered under the laws of this state, except trackless trolleys (which are classified as streetcars), airplanes, motorboats, motorcycles, motor-driven cycles, or go-carts."

However, the Board suggests checking with the local municipal rules where your dealership will be located. They may have different rules. For example they may classify motorcycles as a motor vehicle and require licensure.

Every Georgia Dealer Location Is Independent

Every location is classified as a separate license. This means if you open more than one location you will have to go through the application process.

  • You can skip the pre-licensing seminar
  • You will have to purchase a separate auto dealer bond
  • You will have to purchase liability insurance

Why is a Georgia Motor Vehicle Dealer Bond Required?

One of the responsibilities of the Board of Used Motor Vehicles is to protect the public by providing common rules for operating a dealership in Georgia. This is why all dealers must be licensed to legally sell used vehicles.

Even with these laws in place, there will be dealerships who will purposefully harm their customers to increase profits or attempt to skip out on paying taxes.

Examples of these purposeful acts of misconduct and fraud can include:

  • Improperly transferring a title
  • Selling vehicles with no title or a false title
  • Misrepresenting vehicle information like milage, manufacture year, or condition
  • Lying about accident history or structural work history
  • Stealing customer deposits
  • Choosing not to pay the sales taxes to the Georgia Department of Revenue

The surety bond is your commitment and guarantee that you will follow the rules, provide your customers with the best service, and pay your taxes on all sold cars and merchandise.

How Much Does Georgia Auto Dealer Bond Cost?

The Georgia auto dealer bond requires the following amount (or coverage):

License Classification Bond Amount Bond Term Expires Date Click to Get a Free Quote
Used Motor Vehicle Dealer Bond $35,000 2 Years September 30th - Even years Click for Free Quote
Used Vehicle Parts Dealer $10,000 2 Years December 31st - Odd years Click for Free Quote

Both the used dealer bond and the vehicle parts bond require a custom rate, quoted by a surety.

A surety is an insurance company that underwrites surety bonds (i.e. agrees to indemnify the state in the even of financial harm due to purposeful acts of misconduct and fraud). And just like shopping for "traditional" insurance, each surety will quote a rate based on their own internal assessment of risk.

The major factors that determine the quoted rate are:

  • Personal credit of all owners
  • Business industry and experience
  • Prior bond claims if applicable

This means rates will vary and the final price of a Georgia auto dealer bond can vary as well, potentially by a couple hundred dollars.

How To Avoid Overpaying for a Georgia Auto Dealer Bond

Because rates will vary, it's best to use a specialized surety agent like Surety Bonds Direct.

We work with multiple A-rated sureties to price shop for you and find the lowest rate and price we can. Using an A-rated surety means we can guarantee your bond will be accepted by the Department of Used Motor Vehicles.

Example prices for the $35,000 user dealer bond from really good rates to average are:

Bond Amount Rate Price
$35,000 0.5% $175
$35,000 1.0% $350
$35,000 1.5% $525
$35,000 2.0% $700

But the only way to know your pricing is to request a free quote and get your pricing. There's no cost to have a bond specialist collect rates and find you the lowest pricing. And there's no obligation to purchase either.

Our price quotes are valid for 30 days. And once you have pricing, you'll be able to make the right decision for your dealership and goals.

How Long Does The Georgia Auto Dealer Bond Last?

All Georgia dealer bonds have a bond term of 2 years and expire on September 30th of even number years along with the used dealer license.

The effective date (activation date) for dealer bonds in Georgia must be the first of October and the expiration date, September 30th.

When you work with Surety Bonds Direct, we handle filling out the auto dealer bond form for you. All you need to ensure is you provide the exact same name as you used on the application.

Renewing your bond is easy.

Your bond specialist will contact you 30 to 45 days in advance to make sure the renewal premium is paid on time so your bond remains active.

Once you pay the renewal premium, you don't have to do anything else. Your bond is active and you can continue selling vehicles.

Motor Vehicle Dealer Bonds And Getting Your Georgia Business License/Registration

Read our blog post that will take you through the steps to get your Georgia used dealer license and/or motor vehicle parts dealer license.

Georgia is a unique state with many unique rules and opportunities for selling used vehicles.

At a high level, the steps are:

  • Determine how and where you will sell vehicles
  • Make sure your location meets all of the "place of business" rules
  • Providing the ownership details and identities
  • Purchase your surety bond
  • Purchase the required liability insurance policies
  • Photograph the location to prove it meets rules
  • Proof the education requirements have been met
  • Fingerprints for all owners so a background check can be performed

Georgia prefers you use their online application process so you can upload all the necessary paperwork. They will provide a physical application upon request.

Additional Georgia Motor Vehicle Dealer Bond Resources & Links

Georgia Board of Used Motor Vehicles

The Georgia State Board of Registration of Used Motor Vehicle Dealers and Used Motor Vehicle Parts Dealers is composed of 14 members appointed by the Governor in two divisions, a Used Motor Vehicle Division and a Used Motor Vehicle Parts Division. The Used Motor Vehicle Division has nine members and the Used Motor Vehicle Parts Division has five members.