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Georgia Motor Vehicle Dealer or Motor Vehicle Parts Dealer Bond


Georgia Motor Vehicle Dealer or Parts Dealer Bond Information

Used car dealers and used motor vehicle parts dealers in Georgia must post surety bonds in the state. The bond amount is $35,000 and it is required of used motor vehicle dealers, including motor vehicle brokers, leasing agencies, motor vehicle auctioning companies, and pawn brokers selling motor vehicles. A $10,000 surety bond is required of used auto parts dealers, including rebuilders, and salvage dealers.

All auto dealer surety bonds expire on March 31 of even numbered years and all auto parts dealer bonds expire on December 31 of odd numbered years.

How Much Does a Motor Vehicle Dealer Bond Cost in Georgia?

Used Motor Vehicle Dealer Bond

$35,000 Bond

Expires 3/31 in Even-numbered Years

Used Motor Vehicle Parts Dealer Bond

$10,000 Bond

Expires 12/31 in Odd-numbered Years

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What does a Motor Vehicle Dealer Bond Protect Against?

The surety bond guarantees that the auto dealer or its agent will comply with the conditions of any written contract or written warranty made in connection with the sale or exchange of a vehicle. The surety bond also obligates the surety company and dealer to pay all losses, damages, and other expenses that result from fraudulent misrepresentation of liens or titles to any used vehicle sold.

Georgia used auto dealer and auto parts dealer surety bonds remain in force until canceled by providing 30 days prior written notice to the State Board of Registration.

Getting Your Georgia Business License or Registration

Anyone selling motor vehicles in the state of Georgia with the intent of making a profit must be a licensed dealer pursuant to O.C.G.A. 43-47-2 (17)(A). O.C.G.A. 43-47-2 (7) defines "motor vehicle" or "car" as "...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." Used motor vehicle dealers selling in an open lot, in an office suite, or on the internet must all be licensed.

The Georgia Used Motor Vehicle Division issues a "used motor vehicle dealers" licenses for motor vehicle brokers, independent motor vehicle leasing agencies which sell or offer to sell used motor vehicles, used motor vehicle auction companies and pawnbrokers who sell motor vehicles to the public. In order to operate a Used Motor Vehicle Auction, a dealer license and an auction company license is required and an auctioneer license may also be needed. Learn more about the auction and auctioneer licenses by contacting the Georgia Auctioneers Commission.

A motor vehicle dealer license is not required to sell a car that is titled in your name and that you have used as a personal vehicle. The following is an overview of key Georgia motor vehicle dealer licensing requirements.

  • A completed application form
  • A surety bond in the amount of $35,000 for used motor vehicle dealers and $10,000 for used motor vehicle parts dealers, as required by O.C.G.A. Section 43-47-8(h). Following the initial licensing period, the bond shall then run concurrently with the licensing period. At no time should the licensee be without a bond during any licensing period;
  • A certificate of insurance
  • Fingerprints as required
  • Proof that the applicant has attended the seminar
  • Proof that the applicant has applied for a sales tax registration number
  • Photographs as required
  • Established place of business, and have a working landline telephone installed and listed in the business name
  • Appropriate permanent sign at the established place of business advertising the business as a used car dealership
  • Fee as contained in the fee schedule
  • Pre-license inspection to ensure that dealership is compliant with Board law and rules for an established place of business
  • Regarding ongoing requirements, licensed dealers must obtain 6 hours of continuing education in order to renew a license
  • 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.

As an ongoing licensing compliance requirement, licensed Georgia auto dealers must complete six hours of continuing education in order to be eligible to renew a license. The state of Georgia has approved providers for continuing education and pre-Licensing courses. Approved providers will have more information on CE fees, schedules. Learn more about approved providers by contacting the Georgia Board of Used Motor Vehicles.

For a second location under the same dealership name, an application for Used Motor Vehicle Dealer License must be submitted, check the box for Supplemental License. The application requirements are the same as the original license except for proof of completion of the pre-licensing seminar. The designee must be the same as as listed on the original license and each location must have its own surety bond and signed power of attorney. The certificate of insurance must be amended to list the additional location, and a copy of this must be submitted with the application.

Other Helpful Information and Links

All auto dealer surety bonds expire on March 31 of even numbered years and all auto parts dealer surety bonds expire on December 31 of odd numbered years.

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.