What is a California auto dealer bond?

The California auto dealer bond is an important pre-licensing requirement, which you may encounter under several different names: a dmv bond, a car dealer bond, or a motor vehicle dealer bond.

The important thing to remember is that this type of surety bond is not insurance to your business.

Quite the opposite, it is an added layer of protection to car shoppers in California. Without the bond, you cannot apply for a dealer license.

Here is an overview of the requirement:

Surety Bond Name: California Motor Vehicle Dealer Bond
Surety Bond Amount: $50,000 (retail dealers)
$10,000 (motorcycle, all-terrain and wholesale-only dealers)
Obligee: California Department of Motor Vehicles
Licensing Operations Division
Occupational Licensing Branch
P.O. Box 932342
Sacramento, CA 94232-3420
Expiration Date: Once per Year