California Motor Vehicle Dealer Bond
Get your California Motor Vehicle Dealer Bond Today!
Please note that anything marked *required must be completed before you can submit the form.What is an California Motor Vehicle Dealer bond?
The California Motor Vehicle Dealer bond is required by the California Department of Motor Vehicles. The 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 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. You can review Section 11711 of the California Vehicle Code to read more.The required bond amount depends on the type of license needed:
- $50,000 for new and used dealers (25 or more vehicles per year)
- $10,000 for motorcycle dealers and all-terrain vehicle (ATV) dealers
- $10,000 for wholesale-only dealers (less than 25 vehicles per year)
Who needs an California Motor Vehicle Dealer bond?
The State of California requires all new and used motor vehicle dealers, including motorcycle and trailer dealers (excluding trailers not subject to titling), wholesale dealers and rebuilders to obtain a bond in the amount of $50,000.Find additional licensing information at California Motor Vehicle Dealer Licensing Requirements.
How much does the State of California Department of Revenue Motor Vehicle Dealer bond cost?
The price depends on the type of license for which you are applying. However, the average cost for a California Motor Vehicle Dealer bond is between $400 - $4,500 per year.How do I become a Licensed Dealer in California?
To become a licensed vehicle dealer in California, applicants must complete and submit the following forms:- OL 248A New Dealer Application Check List OR OL 248U Used, Dealer, Dealer-Wholesale Only, and Auto broker Application Check List
- OL 12 Application for Original Occupational License, (Part C)
- OL 21A Original Application for Occupational License, (Part A)
- OL 25 Surety Bond of Dealer
- OL 53 Authorization to Release Financial Information
- OL 124 Certificate of Proposed Franchise
- OL 902 Property Use Verification for Vehicle Dealer’s License
The following fees must also be paid by the applicant prior to receiving a license:
- $175 non-refundable application fee; $125 renewal application fee
- $1 family support program fee
- $70 fee for each branch location (if applicable)
- $88 fee for each dealer plate (plus county fees (PDF), if applicable)
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$90 fee for each motorcycle plate (plus county fees (PDF), if applicable)
- This figure will vary depending on the county where your business is located
- Dealer plates are not required
- $300 new motor vehicle board fee, per location (new automobile, commercial, motorcycle, ATV, motorhome, and recreational trailer dealers only)
- $100 Autobroker Endorsement fee
- $42 fee for each person submitting ADM 1316 Fingerprint Card (out-of-state applicants only)
- $16 examination fee
Is Insurance Coverage required to obtain a Dealer’s License?
The State of California does NOT require insurance to obtain a dealer’s license; however, that doesn’t mean you shouldn’t consider protecting your business from potential risks that may arise.Here are a few policy types you should consider:
- Garage Liability: Similar to a standard General Liability Insurance policy, a Garage Liability Insurance Policy covers an automotive service & repair shop against medical costs and lawsuits that may arise if there is an injury while someone is on the premises. Auto repair shops unfortunately produce more severe injuries than a typical office building, therefore special policies and provisions are in place to best provide your California Auto Dealership the most protection available.
- Garage Keepers: California Garage Keepers helps provide protection for your customers' cars while they are under your care at your Auto Service & Repair shop. Liability coverage protects your business from lawsuits and medical costs, Garage Keepers covers customer's property. Typically, there are options for how much protection you prefer – from limited protection that only coverages damage you are legally responsible for or full protection weather you are legally at fault or not.
- Business Property: A California Business Property Insurance Policy can protect your automotive service & repair shop against damages to your property from covered perils such as accidents, storms, theft, vandalism, earthquake, or fire. Property coverage can extend beyond just the building itself, it can also include inventory, furniture, fencing and outdoor signage.
- Workers Compensation (required): Since your Auto Repair Shop is in California, you are legally required to provide worker's compensation insurance to provide benefits in the event an employee gets injured on the job. Workman's Comp helps cover medical care & rehabilitation costs as well as lost wages until the employee is well enough to come back to work.
Why Ashton Agency?
We understand there are many companies offering dealer bonds, 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 50 years and represent over a dozen A+ rated surety companies. Let us put our experience and resources 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 and insurance quickly and easily!
Don't have time to speak on the phone? Please fill out our easy bond application and garage questionnaire and fax to (503) 253-1353; or apply online at www.ashtonagency.com.
Get Help Now
East Coast:
(800) 451-4854
West Coast:
(800) 452-2663
Email Us!
Use this form to let us know the basics about your Bond or Insurance Needs. We will contact you within one business day. Please note that anything marked *required must be completed before you can submit the form.
East Coast:
(800) 451-4854
West Coast:
(800) 452-2663
Email Us!
Use this form to let us know the basics about your Bond or Insurance Needs. We will contact you within one business day. Please note that anything marked *required must be completed before you can submit the form.