DMV Vehicle Dealer Bond 101

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To sale New or Used Vehicles in California you need a California DMV Vehicle Dealer License. One of the requirement DMV has for you is to obtain a Surety bond of a dealer (OL 25) OR Surety Bond of Motorcycle Lessor-Retailer, All Terrain Vehicle Dealer, OR Wholesale-Only Dealer (Less than 25 vehicles per year) (OL-25B). DMV Dealer bond protect the public from financial harm resulting from violations of licensing law committed by the dealer.

It is very important to know which bond and the amount of bond needed for you DMV license.

There are two different DMV Dealer bonds:

  • DMV MOTOR VEHICLE DEALER NEW AND USED – $50,000.00
  • DMV MOTOR VEHICLE WHOLESALER MOTORCYCLE DEALER BOND – $10,000.00

The cost of the bond depends on your Assets and Credit history.