Motor Vehicle Dealers - New or New and Used Vehicles

The Connecticut Motor Vehicle Surety Bond is a financial guarantee required by the Connecticut Department of Motor Vehicles (DMV) for businesses engaged in motor vehicle sales, repair, or leasing operations. This bond ensures compliance with state regulations and protects consumers from fraudulent or unethical business practices.

Who Needs This Bond: Motor vehicle dealers (new or used), limited repairers, and leasing or rental companies operating in Connecticut must obtain this bond as part of their DMV licensing requirements. The bond amount varies based on the license class: Class 3 licenses require $10,000, $15,000, or $25,000 bonds, while Class 4 licenses require $60,000 bonds.

Protection and Coverage: This bond protects the State of Connecticut and consumers who may suffer financial losses due to the principal's violation of motor vehicle laws, fraudulent practices, or failure to fulfill contractual obligations. The bond provides a financial remedy for damages up to the bond amount.

Term and Renewal: The bond has a one-year term and is renewable annually. Connecticut requires specific formatting requirements, including typed witness names and a raised seal, which must be properly executed for DMV acceptance.