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California Motor Vehicle Dealer Bond

Who needs a California Motor Vehicle Dealer Bond?

All licensed auto and motorcycle dealers are required to maintain a California Motor Vehicle Dealer Bond by the California Department of Motor Vehicles. The bond is required as part of your dealer license application.


Why is the California Motor Vehicle Dealer Bond required?

The California Motor Vehicle Dealer Bond helps ensure that dealers conduct business ethically and lawfully.


How do I know I am getting the right bond for my business?

In our online purchase process, you will be prompted to enter information about your business, which we use to automatically match you to the correct bond. If you are a motorcycle dealer, you may have heard your bond referred to as a California Motorcycle Dealer Bond or Motorcycle Surety Bond. While people use many names, they refer to the same bond. If you are a car dealer, you may have heard your bond referred to as a California Car Dealer Bond or Auto Dealer Surety Bond.

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.