BOND

A dealer must post a bond of $50,000 if applying for a retail license.

Did You Know

A lesser bond of $10,000 is allowed for wholesale license only if fewer than 25 sales annually.

  • In lieu of posting a bond a dealer may deposit cash with the DMV or with an approved FDIC bank or savings and loan.
  • This deposit shall be held 3 years after license is retired. With no claims outstanding, the deposit is returned.
  • It is unlawful to operate w/o having a bond in effect. The office of the principal place of business, and each branch location, must be established prior to license issuance. Photo set of each required.
  • Temporary, transitory & mobile offices are acceptable, provided items are not a part of the inventory for sale.
  • All records must be kept at the place of business. 4 years, at the office or in storage and can be destroyed after 7 years.
  • The display area of each location, required for retail locations, must comply as follows:

It must be of sufficient size to accommodate each type of vehicle the dealer is licensed to sell and be clearly marked for exclusive use. Display areas must be within 1000 ft. of the office.