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New Hampshire Vehicle Dealer’s Bond

Who needs a New Hampshire Vehicle Dealer’s Bond?

Vehicle dealers in New Hampshire are subject to licensing and surety bonding requirements. Most categories of vehicle dealers are required to maintain a New Hampshire Vehicle Dealer’s Bond by the State of New Hampshire Division of Motor Vehicles. The bond is a required part of dealer license applications.

If you are a Retail Dealer, Auto Recycling Dealer, Auto Wholesale Dealer, Motorcycle Dealer, Repair Dealer or Utility Dealer (vehicles greater than 3,000 lbs) a $25,000 surety bond is required.

According to the DMV, “a Retail Dealer License is for any person engaged in the motor vehicle business who sells five (5) or more motor vehicles at retail to the general public in a 12 month period, with an established place of business within this state.”

Why is the New Hampshire Vehicle Dealer’s Bond required?

The New Hampshire Vehicle Dealer’s 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 a New Hampshire Car Dealer Bond or DMV Surety Bond. While people use many names, they refer to the same bond. If you are a New Car Dealer in the State of New Hampshire, this bond is required to obtain and maintain 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.