The California DMV dealer bond — also called a motor vehicle dealer bond or auto dealer bond — is a surety bond required of every licensed vehicle dealer in the state. It is filed with the California Department of Motor Vehicles (DMV) as a condition of obtaining and maintaining a dealer license. For most dealers, the required bond amount is $50,000.
Who Needs a DMV Dealer Bond?
You need a California dealer bond if you sell, or plan to sell, vehicles as a licensed dealer, including:
- New and used car dealers
- Wholesale dealers
- Motorcycle dealers
- Recreational vehicle (RV) dealers
- All-terrain vehicle (ATV) dealers
Dealers selling fewer vehicles or certain specialty dealers may qualify for a smaller bond amount. Motorcycle and certain small-volume dealers, for example, may have a lower requirement. We help you confirm the exact amount you need.
What the Bond Protects
The dealer bond protects consumers and the state. It guarantees that the dealer will conduct business honestly and comply with California's vehicle sale laws — including proper handling of titles, registration fees, and sales taxes. If a dealer commits fraud, fails to pay fees, or otherwise violates the law, a valid claim can be filed against the bond.
New Dealers Welcome
Starting a dealership? We work with sureties that bond new dealers and help you get licensed. Good credit means the lowest rates, but we have options across the credit spectrum.
How Much Does It Cost?
You do not pay the full $50,000. You pay an annual premium — a percentage of the bond amount based mainly on your personal credit. Dealers with strong credit pay the lowest rates. Because premiums vary between surety companies, we shop your application to find the best available rate.
How to Get Your Dealer Bond
- Contact us for a free quote.
- Complete a short application — we handle underwriting.
- Get approved and pay your premium.
- Receive your bond to file with the DMV.
Why Advanced Surety?
We serve auto dealers throughout California with fast, personal service. With a former underwriter on your team and access to multiple A-rated sureties, we secure competitive rates and get you bonded quickly — whether you're a new dealer or renewing an established license.