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Alabama Motor Vehicle Surety Bond

Who needs an Alabama Motor Vehicle Surety Bond?

All licensed motor vehicle dealers are required to maintain an Alabama Motor Vehicle Surety Bond by the State of Alabama. The bond is required as part of your dealer license application.

Why is the Alabama Motor Vehicle Surety Bond required?

The Alabama Motor Vehicle Surety Bond helps ensure that dealers conduct business ethically and lawfully.

How do I know this is the required bond for my business?

You may have heard this bond referred to as an Alabama Motor Vehicle Dealer License Surety Bond, Alabama DMV Bond, Dealer Bond, Dealer License Bond, Car Dealer Bond or Auto Dealer Bond. While people use many names, they refer to the same bond. If you are a motor vehicle dealer in the State of Alabama, this bond is required to obtain your license.

General Questions
What is a surety bond? 
What is a surety bond?

A surety bond is a three-party agreement among a principal, an obligee, and a surety.

The bond formalizes the principal's obligation to the obligee. The surety guarantees that the principal will fulfill their obligation.