Motor Vehicle Dealers - New or New and Used Vehicles

The Motor Vehicle Dealer bond is a surety bond required by the State of Montana for businesses engaged in selling new vehicles or both new and used vehicles. This bond serves as a financial guarantee that the dealer will operate in accordance with Montana's motor vehicle dealer laws and regulations.

Motor vehicle dealers who sell new vehicles or a combination of new and used vehicles must obtain this bond as part of their licensing requirements. The bond amount varies based on the dealer's business volume and classification, with options of $5,000, $15,000, or $50,000 available.

This bond protects the State of Montana and consumers from financial losses that may result from the dealer's failure to comply with applicable laws, fraudulent business practices, or breach of contract. If a dealer violates state regulations or engages in deceptive practices, affected parties can file claims against the bond for compensation up to the bond amount.

The bond has a one-year term and must be renewed annually to maintain the dealer's license. Bond amounts of $5,000 and $15,000 are classified as Class 2, while the $50,000 amount falls under Class 3 classification for underwriting purposes.