Motor Vehicle Dealers - New or New and Used Vehicles

The Iowa Motor Vehicle Dealer and/or Towable Recreational Vehicle Dealer Bond is a state-mandated surety bond required for businesses engaged in selling new or used motor vehicles and towable recreational vehicles in Iowa.

Who Needs This Bond: Motor vehicle dealers and towable recreational vehicle dealers must obtain this bond as part of their licensing requirements with the Iowa Department of Transportation (DOT). This includes dealerships selling cars, trucks, motorcycles, trailers, RVs, and other towable recreational vehicles.

Protection and Purpose: This $75,000 bond protects the State of Iowa and consumers from financial losses resulting from the dealer's failure to comply with state laws and regulations governing motor vehicle sales. It ensures dealers operate ethically and fulfill their obligations to customers, including proper title transfers, warranty compliance, and adherence to advertising standards.

Bond Requirements: The bond has a one-year term and is renewable annually. Iowa DOT requires the principal (dealer) to sign the original bond form in ink - electronic signatures are not accepted. However, pre-executed forms are acceptable, and the original signed bond form must be submitted to the state for licensing approval.