Dealer Surety Bond - Used Vehicles Only

The California Used Vehicle Dealer Surety Bond is a $50,000 financial guarantee required by the State of California for businesses that sell used motor vehicles. This bond ensures that used vehicle dealers comply with state laws and regulations governing their industry.

Used vehicle dealers in California must obtain this bond as part of their licensing requirements. The bond specifically applies to dealers who sell only used vehicles, as opposed to new vehicle franchised dealers who have different bonding requirements.

The bond protects consumers and the State of California from financial losses resulting from the dealer's failure to comply with applicable laws, fraudulent business practices, or violations of dealer regulations. If a dealer engages in prohibited activities that cause financial harm, affected parties can file claims against the bond for compensation up to the $50,000 coverage amount.

This bond has a one-year term and is renewable annually. Dealers must maintain continuous bond coverage to keep their license active. As of July 1, 2024, a signed application is required for bond issuance, and dealers must provide their address for service of process during the application process.