Basic Licensing Requirements
$50,000 Dealer Bond
- The general rule is that most dealers must maintain a $50,000 bond at all times. There are exceptions, which are discussed below.
The bond must be on file, or submitted prior to renewal of the dealer's license. The bond effective date must also be prior to the current license expiration date.
Bond Company Recommendation:
- Motorcycle only dealers.
Wholesale only dealers who sell less than 25
vehicles per year. These dealers are required to maintain only
a $10,000 bond on file with the DMV. Note that if you have the $10,000
bond on file, and you discover you may sell more than 25 vehicles at wholesale
in a year, you may then submit a rider to the DMV from your bonding company
raising your $10,000 bond to $50,000, or submit a new $50,000 bond. The
rider or bond must be on file with the DMV before selling 25 or more vehicles
in a given year, and before your prior bond expires.
The dealer bonds ($50,000, or $10,000), must
be continuously on file with the DMV. If your bond expires your license
is cancelled, not suspended, immediately, and must be surrendered to the
DMV. You would then have to apply for a whole new license.
We have trained thousands of dealers over the past 15 years. We continually ask our dealers, and new dealers, for their their
reccomendations for the best bond rates. The most recommended company, by far, has been YourCarDealerBond.com. We contacted them verify their rates. They
offered to provide dealers taking our course their very best rates. If you decide to contact them for a quote, the best way is to e-mail Mike Ramos at
Mike@yourcardealerbond.com. Mike is the president of the company so you are talking the head of the company, not a commissioned salesperson. Tell him you were
recommended by Motorsports Market to get their best rates.
2.1.2 Methods of compliance:
- 1. File a Surety Bond of Dealer, form OL25, executed by an admitted surety
insurer in the amount of $50,000.
File a $50,000 cash deposit with DMV with Form OL64, or
OL65 as required. You can get these forms at same link as above. Remember,
the DMV may keep your $50,000 cash bond for up to three years after you
cease business to satisfy any potential claims that may surface during that
File a rider to your current bond stating the bond amount
is increased to $50,000. The rider must also indicate that a financing agency
may make a claim to the bond.
2.1.3 List of Surety Companies:
- A list of Surety Companies to choose from may be found at our