The California DMV (Department of Motor Vehicles) Vehicle Dealer License bond, also known as a DMV Dealer Bond, is a type of surety bond required for individuals or businesses engaged in the sale or distribution of vehicles in the state of California. It is a financial guarantee that ensures compliance with the regulations and laws governing vehicle dealerships.

Obtaining a DMV Dealer License bond is a prerequisite for obtaining a vehicle dealer license from the California DMV. It serves as a form of protection for customers and the state in case the dealer engages in fraudulent or unethical business practices. The bond provides financial compensation to affected parties if the dealer fails to fulfill their obligations, such as not paying required taxes or fees, engaging in deceptive practices, or failing to deliver vehicle titles.

The bond amount varies based on the type of dealership and the number of vehicles sold annually. It is typically set by the California DMV, and dealers must obtain a bond that meets or exceeds the specified amount. The bond can be obtained from an insurance or surety company authorized to issue such bonds in California.

If a claim is filed against the bond, the surety company will investigate the claim and, if valid, provide compensation to the claimant up to the bond amount. However, the dealer is ultimately responsible for repaying the surety company for any claims paid out.