Motor Vehicle Dealers - New or New and Used Vehicles

The State of Illinois Designated Agent Bond is a surety bond required for Illinois vehicle dealers who designate agents to conduct vehicle transactions and handle dealer responsibilities on their behalf. This bond ensures compliance with state regulations governing motor vehicle dealer operations.

Who Needs This Bond: New and used vehicle dealers in Illinois who appoint designated agents to represent them in vehicle sales, titling, registration, or other dealer activities must obtain this bond. New dealers are specifically required to maintain this bond for a minimum of 60 months from the date of initial licensing.

Protection and Coverage: The $50,000 bond protects the State of Illinois and consumers from financial losses resulting from fraudulent, deceptive, or non-compliant actions by the designated agent or dealer. This includes violations of Illinois vehicle dealer laws, improper handling of customer funds, or failure to transfer clear titles.

Bond Terms: This bond has a one-year term with mandatory expiration on December 31st each year. The bond is renewable and requires a wet signature from the designated agent. New dealers must maintain continuous coverage for the full 60-month period as mandated by Illinois law.