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Tennessee Motor Vehicle Dealer Bond

Who needs a Tennessee Motor Vehicle Dealer Bond?

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


Why is the Tennessee Motor Vehicle Dealer Bond required?

The Tennessee Motor Vehicle Dealer 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 Tennessee Motor Vehicle Dealer License Surety Bond, Tennessee 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 Tennessee, 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.