dmv car dealer surety bond



DMV Car Dealer Surety Bond

All dealer license applicants must select the type of dealership which then must have the appropriate bond. The bond is a pot of gold to protect the government and allows a payout when the dealer fails to post DMV fees, when the dealer fails to post sales tax or when the dealer fails to honor a judgement, a judge’s order. The most common method to post a bond is to rent the money and pay an annual fee. Some dealers are required to post a cash deposit or have a co-signer.

If you must post an all cash bond the DMV holds your cash for three years beyond the dealership closure. Your collective dealership credit sets the price of the annual bond fee.

Each bond has a twelve month life and a three year period to make claim upon the bond.

All dealer license applicants must select the type of surety bond they wish to post.

The choices are:

Wholesale Only

Wholesale dealers selling 24 units per year or less require a $ 10k bond.

Wholesale dealers selling 25 units or more per year require a $ 50k bond.


All retail dealers, except motorcycles require a $ 50k bond.

AutoBroker Endorsement

Any dealer, wholesale or retail, with a $50k bond, may choose to become a broker.

These TriStar instructors offer dealer surety bond assistance for an additional fee:

Sony Duong, English, Vietnamese and Chinese, 714-677-0843

Mike Ramos, English and Spanish, 714-797-5780