Motor Vehicle Dealers - Used Vehicles Only

The State of Illinois Designated Agent Bond is a $50,000 surety bond required for Illinois vehicle dealers who sell used vehicles only. This bond serves as a financial guarantee that the dealer will operate in accordance with state laws and regulations governing vehicle sales.

Who Needs This Bond: Used vehicle dealers in Illinois who are designated as agents must obtain this bond to maintain their licensing and legal operation. The bond is mandatory for compliance with Illinois Department of Motor Vehicles requirements.

Protection and Coverage: This bond protects the State of Illinois and consumers from financial losses resulting from the dealer's failure to comply with applicable laws, fraudulent practices, or other violations of their duties as a designated agent. It ensures that funds are available to compensate parties harmed by the dealer's misconduct.

Term and Renewal Details: The bond has a 1-year term with mandatory expiration on December 31st each year. New dealers must maintain continuous bond coverage for 60 months (5 years). The bond is renewable annually and requires a wet signature from the agent for processing. Dealers must ensure timely renewal to avoid lapses in coverage that could affect their licensing status.