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.
All licensed motor vehicle dealers are required to maintain a Minnesota Motor Vehicle Dealer Bond by the State of Minnesota. The bond is required as part of your dealer license application.
The Minnesota Motor Vehicle Dealer Bond helps ensure that dealers conduct business ethically and lawfully.
You may have heard this bond referred to as a Minnesota Motor Vehicle Dealer License Surety Bond, Minnesota 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 Minnesota, this bond is required to obtain your license.