State of California - Dealer Surety Bond (Vehicle Code Section 11710)

The California Dealer Surety Bond is required under Vehicle Code Section 11710 for used vehicle dealers seeking to obtain or renew their dealer license in California. This bond ensures compliance with state regulations governing the sale of used motor vehicles.

Who Needs This Bond: Used vehicle dealers operating in California must secure this bond as part of their licensing requirements. Franchise dealers with multiple locations may need additional bonds based on their classification - Class 2 requires one $50,000 bond, Class 3 requires two bonds totaling $100,000, and Class 4 requires three or more bonds totaling $150,000 or more in aggregate coverage.

Protection and Coverage: The bond protects consumers and the State of California against financial losses resulting from dealer violations of state vehicle codes and regulations. This includes protection against fraudulent practices, failure to transfer titles properly, or other violations of dealer licensing requirements.

Bond Details: The standard bond amount is $50,000 with a one-year term. The bond is renewable annually and requires a signed application effective July 1, 2024. Pre-paid terms may be available upon underwriter approval.