BONDS
Coverage Amount:
$50,000
Cost:
$500.00
Period:
1–3 years
The California Motor Vehicle Dealer Bond is a $50,000 surety bond required for licensed vehicle dealers. It provides financial protection to the public if a dealer fails to follow the California Vehicle Code, including obligations related to title transfer, taxes, and fees.
The bond is maintained as a condition of licensure and must remain active for the dealer’s license to stay in good standing. Dealers remain responsible for reimbursing the surety for valid claims paid under the bond.
Obligee: California Department of Motor Vehicles
Amount: $50,000
Who needs it: California vehicle dealers (retail/wholesale)
Filing: Surety files electronically with the DMV
Keep active to maintain license compliance
What is a surety bond and how does it work?
A surety bond is a three-party agreement among the principal (you), the obligee (the government agency), and the surety (bond company). It guarantees you will follow laws and regulations. If a valid claim is paid, the surety seeks reimbursement from the principal. A bond protects the public—not the licensee.
Who requires the bond and who sets the bond amount?
How long is the bond term and how do renewals work?
How is the bond filed with the agency?