Pennsylvania Motor Vehicle Dealer, Agent, Servicer or Salvor Bonds
Pennsylvania Motor Vehicle Dealer or Agent Bonds Information
The Pennsylvania Department of Transportation requires that motor vehicle dealers, manufacturers, issuing agents, salvors, messengers services, and card agents be licensed by the State Board of Vehicle Manufacturers, Dealers and Salespersons, and post a surety bond.
How Much Does a Motor Vehicle Dealer Bond Cost in Pennsylvania?
Most Common Bonds
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What Does a Motor Vehicle Dealer Bond Protect Against?
The corporate surety bond ensures that the car dealer complies with all state laws, rules and guidelines set out by the Pennsylvania Department of Transportation governing the operation of a vehicle dealership in the state. The bond provides protection against a dealer’s unlawful or unethical business practices that result in financial damages to customers.
In a situation where the bonded customer (principal) fails to comply with bonding terms and requirements, the surety company is financially obligated to cover damages up to the bond limit (or penalty) of the bond. The surety bond principal is also required to reimburse (or indemnify) the surety for losses paid to damaged parties.
Pennsylvania auto dealer bonds are continuous until canceled through 60 days written notice provided to the Pennsylvania Department of Transportation by the surety company.
Getting Your Pennsylvania Business License or Registration
The following is an overview of key auto dealer licensing requirements in Pennsylvania.
- Complete Vehicle Dealer Application
- Follow instructions to obtain Temporary Registration Plates
- Post Surety Bond for each place of business
- Provide criminal history records
- Familiarize with sections of Pennsylvania Vehicle Code and Title 67 as required
- 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.