Auto Dealer Surety Bonds

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Auto Dealer Bonds – California

Auto dealer bonds are required to be a licensed car dealer in California. There are four types of auto dealer bonds available: the $50,000 franchise dealer bond, the $50,000 used/wholesale dealer bond, the $10,000 wholesale dealer bond, and the $10,000 motorcycle dealer bond.

We work with several major insurance carriers to deliver the lowest possible bond price to our customers. Surety bonds need to be filed with the dealer’s inspector to comply with the California DMV Occupational License Division.

Why Is the Motor Vehicle Dealer Bond Required?

The motor vehicle bond is a requirement put in place by the California State Legislature and enforced by the CA DMV Occupational Division to protect others from auto dealers. Should an infraction occur the auto dealer bond covers the claimant up to the dollar limit of the bond.

Consumers are protected from any loss caused by fraud and failure to transfer registration. The bond is also security for a person who is not paid for a vehicle sold to a licensed dealer. Lastly, the state of California is guarded from fraud, registration, and tax and fee violations committed by the dealer. You can review Section 11711 of the California Vehicle Code  to read more.

To start the process kindly complete our Bond Application and return to us.


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