Motor Vehicle Dealers - New or New and Used Vehicles

The Motor Vehicle Dealer's/Buyers Agent bond is a surety bond required by the State of Alaska for businesses and individuals engaged in the sale of motor vehicles. This bond ensures compliance with state regulations governing the motor vehicle industry and protects consumers from fraudulent or unethical business practices.

Motor vehicle dealers selling new vehicles or both new and used vehicles, as well as buyers agents who facilitate vehicle purchases on behalf of consumers, must obtain this bond as part of their licensing requirements. The bond is mandatory for maintaining an active dealer license in Alaska.

This surety bond protects the Commissioner of Administration, State of Alaska, and the general public from financial losses that may result from the dealer's failure to comply with state laws and regulations. Coverage includes violations such as failure to transfer titles properly, misrepresentation of vehicle condition, or other deceptive practices in vehicle sales transactions.

The bond is available in amounts of $25,000 or $100,000, depending on the specific requirements for the dealer's license type and business volume. The bond term is one year and must be renewed annually to maintain continuous licensing compliance.