Motor Vehicle Dealers - New or New and Used Vehicles

The North Carolina Division of Motor Vehicles Motor Vehicle Dealer Surety Bond is a financial guarantee required for businesses engaged in selling new or new and used motor vehicles in North Carolina. This bond ensures compliance with state regulations governing motor vehicle dealer operations and licensing requirements.

Motor vehicle dealers operating in North Carolina must obtain this bond as part of their licensing process with the Division of Motor Vehicles. This includes dealerships selling new vehicles exclusively or those selling both new and used vehicles. The bond requirement applies to businesses engaged in the retail sale of motor vehicles to consumers.

The bond protects any person who may be aggrieved by the dealer's failure to comply with applicable laws, regulations, or contractual obligations. This includes consumers who suffer financial losses due to fraudulent practices, failure to deliver clear title, misrepresentation of vehicle condition, or other violations of motor vehicle dealer regulations.

Bond amounts are available at $25,000 or $50,000 depending on the dealer's specific requirements and business volume. The bond term is one year and must be renewed annually to maintain active dealer licensing status in North Carolina.