Car Dealer Bond FAQ

Car Dealer Bond Vital Info…

Cheap Wholesale Car Dealer Bonds

What is a Car dealer bond?

The used car dealer bond protects your customers against fraudulent or unethical actions by a dealer. The dealer bond assures the dealer is financially secure in cases where a customer is cheated by a dealer. The DMV and flooring company can also make claims against this car dealer bond.

Can I make a down payment and then pay monthly for the Car Dealer Bond?


866-357-4405 or for the best rates on a retail or wholesale car dealer bond and ask about our 30% down payment option.

All surety bond carriers ask for payment of the bond in full, however Your Car Dealer Bond has set up a financing program to give California dealers access to a payment plan for their DMV dealer bond.

The DMV needs the OL-25 form signed – what is this and where do I get it?

The OL 25 is your surety dealer bond. The original car dealer bond that will be sent from your bond carrier will meet this requirement.

How long does it take to receive the initial car dealer bond quote?

Approximately 24 hours, unless your FICO score is below 650. Then the process usually takes 2 days to get your dealer bond quote.

How long does it take to receive the originally-signed car dealer bond needed to obtain my license?

From the time we receive your payment, it’s typically a week to 10 days before your receive your dealer bond in hand depending on where you are located in the country. We’ve invested in check-by-fax and check-by-email to help expedite our service.

What if I have had some credit issues (bankruptcies, short-sales, foreclosures, etc.), can I still get a dealer bond?

Most dealers these days have encountered credit issues of some sort. We have the most competitive car dealer bond carriers for all credit levels so no worries if your credit is less than perfect!

I started with a $10,000 car dealer bond because I am a wholesale dealer and thought I would sell 24 vehicles or less per year. Will the surety company increase the limit of my dealer bond from $10,000 to $50,000 for additional premium if I will sell 25 or more cars or I want to retail or auto broker?

Unfortunately not. Once your DMV inspector accepts your dealer bond and issues your dealer license, the surety company will not make any refunds whatsoever. The $10,000 dealer bond would have to be canceled and a $50,000 car dealer bond would need to be written without a credit or refund.

Can I pay for my car dealer bond with a credit card?

You sure can. For your convenience, we accept Visa, Mastercard, Discover, and American Express. A standard convenience charge of 5% will be applied. While we hope you don’t need to incur this additional expense, some of our customers have found this option extremely helpful.

More Important Info about Your Car Dealer Bond…

RIDER Process: needing a rider to modify your car dealer bond can be very frustrating if it’s only needed because your app was incomplete or something was incorrect. One of most common reasons for a rider that we see is the dealer forgot to put his middle name on the app. The cost is $100 and having to go through this process will add on 2 – 3 weeks to the time before you can be licensed. We are here to help and would rather spend 10 minutes answering your questions to provide you with the best possible experience with respects to your bond acquisition.

The two (2) most time-consuming steps of the car dealer licensing process are:

  • getting the LiveScan fingerprints into the Department of Justice system. This takes about 45 days and costs about $70; and
  • forming a corp. or LLC (if applicable). This also takes about 45 – 60 days, although the Secretary of State offers an expedited service for about $375 vs. about $100.

Retail Surety Bond |

PH: 866-357-4405 | Fax: 510 509-3294

Your Car Dealer Bond services the following states:

California, Oregon, and Washington, Nebraska, North Dakota, South Dakota, North Carolina, South Carolina, and Texas.
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