Washington D.C. Motor Vehicle Dealer Bond
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What Is a Washington D.C. Motor Vehicle Dealer Bond?
In Washington D.C., auto dealers are required to get a surety bond as part of the licensing process. This bond acts as a financial guarantee, ensuring that dealers adhere to local laws and fulfill their contractual obligations to consumers.
How Does a Washington DC Auto Dealer Bond Work?
According to D.C. Code Statute 50–603, new and used motor vehicle dealers must file a $25,000 surety bond before being licensed. These bonds protect the public from financial losses if dealers do not comply with state laws or commit fraud.
If a dealer violates the bond terms and causes financial harm to another party, the surety company will cover claims up to the full bond amount. Then, the dealer is responsible for reimbursing the surety.
How Much Does a Motor Vehicle Dealer Bond Cost?
The cost of a motor vehicle dealer bond in Washington, D.C. starts at $437 for the mandatory 2-year term. Your exact premium will be determined after a brief application review. Apply online now to receive your free, personalized bond quote!
Types of Washington, D.C. Dealer Bonds
$25,000 Motor Vehicle Dealer Bond
This bond is required for all motor vehicle dealers, ensuring compliant sales of both new and used vehicles. It protects consumers from financial losses due to fraud or regulatory violations.
$25,000 Used Car Lot Bond
If you operate a used car lot, you must file a separate $25,000 used car lot bond with the Department of Consumer and Regulatory Affairs. This bond guarantees that lots follow D.C. regulations regarding the sale of used vehicles and uphold legal obligations.
How Can I Get a Washington, D.C. Motor Vehicle Dealer Bond?
Obtaining a DC motor vehicle dealer bond is fast and easy with SuretyBonds.com. Follow these steps to secure your bond:
- Apply: Submit your application online at SuretyBonds.com.
- Quote: Receive your bond quote within one business day.
- Purchase: Complete your purchase through our secure online checkout.
When you apply, you’ll need to provide your dealer license number, business address, dealership name and types of vehicles sold (new or used).
How to Renew Your D.C. Motor Vehicle Dealer Bond
To keep your bond active, renew it before the end of its two-year term. After paying your renewal invoice from SuretyBonds.com, you’ll receive instructions via email to complete the renewal process.
How to Become a Licensed Motor Vehicle Dealer in Washington D.C.
The D.C. Department of Motor Vehicles oversees licensing for auto dealers, including the $25,000 surety bond requirement. To obtain your motor vehicle dealer license, submit your online dealership application with the following documentation:
- Clean hands self-certification
- Basic business application
- Occupancy permit
- Proof of current insurance
- Federal tax ID form
- Copy of owner's state-issued ID
- Copy of each salesperson's state-issued ID
- Motor vehicle dealer bond
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