The bond is a contract between the surety company, the licensee, and the State of California to ensure the dealership is in compliance with the California Vehicle Code (CVC).
This surety bond is required for all licensed Motor Vehicle Dealers in the State of California.
The bond premium is based on credit and years of industry experience. With good credit, the premium on a $10k bond is $100 and can be as low as $400 on a $50k bond.
To get a free vehicle dealer bond quote, complete and submit our secure online application.
If you prefer to fill out a pdf application, please email your request to email@example.com.
Auto dealerships in California are required to get an auto dealer license to operate in the state. Part of the pre-licensing requirements set by the California Department of Motor Vehicles (DMV) is to get a surety bond.
California auto dealer bonds protect the state and consumers against the fraudulent and unethical practices of auto dealers. When a dealer gets their license they agree to comply with the rules established by the California Department of Motor Vehicles (DMV) and the California Vehicle Code.
If an auto dealership does not follow the regulations, a claim can be made against the bond. In the event of a successful claim, the surety company will pay the damaged party up to the total bond amount. The principal is then responsible for reimbursing the surety company.
California distinguishes between motor vehicle dealers based on the type of vehicles they sell. These distinctions determine the type and size of the bond that you need:
The required bond amount for California auto dealer bonds depends on the specific type of dealer license.
Motorcycle dealers, motorcycle lessor-retailers, ATV dealers, and wholesale-only dealers (selling less than 25 vehicles per year) require a $10,000 surety bond.
New motor vehicle dealers selling more than 25 vehicles a year require a $50,000 surety bond.
Auto dealers need to pay a percentage of the total bond amount as a premium to get the bond. The cost for a California auto dealer bond typically ranges from 1% to 5%. Dealers with excellent credit and industry experience can pay as little as:
To become a licensed auto dealer in California, you must meet the DMV licensing requirements, pay all application fees, and complete the following forms:
You will also need to provide the following supporting documents along with your application:
To get a California auto dealer bond, you need to complete a brief online application. After your application is received, we will send you a free quote and instructions for completing the process.
California Department of Motor Vehicles, Licensing Operations Division
Occupational Licensing Branch
PO Box 932342
Sacramento, California 94232
I have processed 2 defective title bonds through South Coast Surety and I am the type that gets worried for any little detail and want to make sure everything is done correctly the first time to prevent double work for myself and everybody. Knowing how I am both times I had to call customer service and they answered every little question I had in a very nice and gratifying way that made me feel I would not have any problems in which I did not. South Coast Surety has the ultimate best customer service.
Gaby - CA
I was shopping for a surety bond for the first time and having trouble communicating with several different companies. When I contacted South Coast Surety they responded quickly and performed the transaction quick and easy. I might have been able to find a lower price, but their professionalism was worth a couple extra dollars.
KG C. - CA
We are opening up a Mental Health Residential Treatment Center and needed a Surety bond since we will be handling some clients cash resources. I reached out to South Coast Surety, they sent me an application, paid our premium and had our bond sent to us immediately. Everyone I spoke to and emailed was courteous, attentive and responded very quickly. We will most definitely continue to get all of our bond services from South Coast.
John F. - CA
Great customer service from South Coast Surety. When I had questions about the bond and process, their customer service team assisted me with a sense of urgency and answered my questions. I recommend using their services. I will be a returning customer.
P&C B. - CA
I needed a surety bond and was referred by another company to south coast. I am very impressed with the level of customer service in every stage of issuing the bond, the rapid response to the get the bond issued and communication with the team. Great team and awesome service. I highly recommend South Coast Surety for you bond needs.
Mirwais A. - CA
I was in need of obtaining my CA Insurance Bond. I was able to obtain my required Bond quote online within minutes. I approved the quote and requested the Bond to be issued. On the same day, I received the Evidence of Coverage. Could not ask for better pricing or better service. I highly recommend South Coast Surety to meet a wide range of Bonding needs.
Udo G. - NJ
South Coast Surety has been proudly providing surety support to all fifty U.S. states for twenty years. Starting out as a small agency with a dream in San Clemente, California, we have steadily grown into one of the largest bond-only agencies in the nation. We write all commercial bonds and contract bonds for every American business and industry. Our greatest achievement is helping our clients grow their business alongside our own through coaching and obtaining larger bonding limits at the best rates. We work hard for our clients and take pride in bonding businesses that have been declined by our competitors.