Motor Vehicle Dealers - New or New and Used Vehicles

A Remanufacturer Surety Bond is a financial guarantee required by the State of California for businesses engaged in remanufacturing motor vehicle parts and components. This bond ensures compliance with state regulations governing the remanufacturing industry and protects both the state and consumers from potential violations.

Businesses that remanufacture automotive parts, engines, transmissions, and other vehicle components must obtain this bond as part of their licensing requirements. Remanufacturers take used or worn parts and restore them to like-new condition through specific processes that meet or exceed original equipment manufacturer specifications.

The bond protects the State of California and consumers by providing financial recourse if the remanufacturer fails to comply with applicable laws and regulations, engages in fraudulent practices, or violates the terms of their license. This includes ensuring proper labeling, meeting quality standards, and maintaining appropriate business practices.

The bond amount is set at $50,000 with a one-year term. The bond is renewable annually to maintain continuous coverage and licensing compliance. Remanufacturers must maintain this bond throughout the duration of their business operations to remain in good standing with state regulatory requirements.