Motor Vehicle Dealers - Used Vehicles Only

The Iowa Motor Vehicle Dealer and/or Towable Recreational Vehicle Dealer Bond is a $75,000 surety bond required by the Iowa Department of Transportation for businesses engaged in selling motor vehicles or towable recreational vehicles within the state.

Who Needs This Bond: All motor vehicle dealers and towable recreational vehicle dealers operating in Iowa must obtain this bond as part of their licensing requirements. This includes both new and used vehicle dealers who sell cars, trucks, motorcycles, trailers, RVs, and other towable recreational vehicles to consumers.

Protection Provided: This 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 vehicle sales. It ensures dealers operate ethically, maintain proper records, handle titles correctly, and fulfill their obligations to customers and the state.

Bond Details: The bond has a one-year term and is renewable annually. The Iowa DOT requires the principal to sign the original bond form in ink - electronic signatures are not accepted. However, pre-executed forms are acceptable. The bond amount of $75,000 provides financial security for claims arising from violations of Iowa motor vehicle dealer regulations.