Alabama Motor Vehicle Dealer - Used

The Alabama Motor Vehicle Dealer - Used is a $50,000.00 bond. This bond is available in 1, 2, or 3 year terms.

The Motor Vehicle Bond guarantees that the motor vehicle dealer complies with all federal laws, state laws, local laws, and tax and judgment guidelines that relate to motor vehicles. This bond is required by the State motor vehicle department to obtain a car dealership license. Used Auto dealer bonds do not protect the used car dealer from lawsuits, but it protects the consumer from fraud or misrepresentation by the car dealer. Dealer bonds guarantee compliance with state laws. Each state sets its own bond amount and expiration date. The Motor Vehicle Dealer Bond is also referred to as a Dealer Bond, MVD Bond, Auto Dealer Bond, Used Dealer Bond, and similar names. You are required to have a bond prior to obtaining a Dealer License.

Ashton Agency has a 99% approval rate and offers the Used Motor Vehicle Dealer Bond for Alabama car dealers for one, two, or three years.


The Alabama state legislature passed House Bill 400 to standardize the surety bond and license requirements for motor vehicle dealers,designated agents, rebuilders and recondition licensees to hold a $50,000 bond.  The $50,000 bond replaces the need for multiple bonds for each license.  Once the bill is enacted, the following changes will occur:

1.)   Instead of rebuilders and reconditioners having to have two separate licenses, it will be combined into one.

2.)   New and used dealers will not have to obtain multiple license categories to conduct business.

3.)   Instead of motor vehicle dealers (whether new,used, and/or wholesale), designated agents, rebuilders and reconditioner shaving separate bonds for each license, it is being combined into one $50,000 bond. 

The Alabama Department of Revenue is working towards having the new bond form loaded into the online system by August 1st for those who renew their license and bond at the end of September.  The Department is also developing a system tohelp agencies such as, Ashton Agency to better assist Alabama dealers,designated agents, rebuilders, and reconditioners renew their bond. 

If you have additional questions or concerns, please contact the Alabama Department of Revenue at: (334) 242-1170, or visit their website:

Who needs the Used Motor Vehicle Dealer Bond?

In the State of Alabama, Auto Dealers are required to obtain a $50,000 Motor Vehicle Dealer Bond to be in compliance with Title 40, Chapter 12, Article 8 of the Code of Alabama, 1975 of the Alabama Statutes. All Alabama motor vehicle dealer licenses have a common expiration date of September 30th; although the dealer bonds are continuous.

What is the Used Motor Vehicle Dealer Bond?

The Motor Vehicle Dealer Bond protects the party requesting the surety bond, the Obligee, against any financial losses as a result of poor financial choices, damages, unethical decisions, or a failure to adhere to state and local laws on the part of you, the Principal. By obtaining your auto dealer bond, you are telling the Obligee that you can be trusted and that you stand by your business decisions.

What else do I need besides the Used Motor Vehicle Dealer Bond?

In addition to the bond, the State of Alabama requires that you purchase blanket liability insurance coverage for all vehicles owned and/or associated with the business. The insurance limits are:

  • $25,000 bodily injury/person/accident

  • $50,00 combined bodily injury/accident

  • $25,000 property damage/accident or a combined single limit of $75,00/accident

Ashton Agency can write your liability coverage too. Contact us today at (800) 451-4854 for a free, no-obligation quote on both your bond and insurance! We can write your bond for up to three years, with discounts available on the second and third years' premiums. Let us save you money!

Not sure what else you might need to get licensed or renewed? Check out the requirements here!

I have my bond and insurance.. What now?

Dealers will submit the original signed bond form to the Alabama Department of Revenue at the following address:

Alabama Department of Revenue

Sales, Use & Business Tax Division

Severance & License Section

PO Box 327550

Montgomery, AL 36132-7550

Telephone: (334) 353-7827

Motor Vehicle Dealer Bonds are also known as: Alabama Auto Dealer Bond, Auto Dealer Bond, Used Auto Dealer Bond, Used Motor Vehicle Bond, Franchise Dealer Bond, MVD Bond, DMV Bond, Dealer Bond, New Car Dealer Bond, New Auto Dealer Bond, and Car Dealer Bond.

Get Bonded Within One Business Day!

Only Ashton Agency can provide you with:

  • The lowest price for your dealer bond.

  • Quickest Turnaround time.

  • The ability to meet or beat any competitors' pricing.

Everyone needs a dealer bond, but by contacting the Ashton Agency, you can be sure you'll be getting the best price available, not to mention our stellar customer service and insider knowledge of the auto industry. We've been helping auto dealers get bonded for more than 45 years. Let us put that experience to work for you today!

Call us now at (800) 452-2663 for a free quote and we will contact you within 24 hours. We can assist you over the phone to ensure you receive your bond quickly and easily!

Don't have time to speak on the phone? Please fill out our easy online application and fax to (503) 253-1353. We can get you started right away!

A Better Price Starts Right Here, Alabama!

Let's start with some basic information about your company to get going on your new Bond or Insurance. Please note that anything marked *required must be completed before you can submit the form.

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Motor Vehicle Dealer - Used Alabama
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