Motor Vehicle Dealers - Used Vehicles Only

The North Carolina Division of Motor Vehicles Motor Vehicle Dealer Surety Bond is a financial guarantee required for used motor vehicle dealers operating in North Carolina. This bond ensures compliance with state regulations governing the sale of used vehicles and protects consumers from fraudulent or unethical business practices.

Who Needs This Bond: Used motor vehicle dealers in North Carolina must obtain this surety bond as a condition of receiving and maintaining their dealer license from the North Carolina Division of Motor Vehicles. This requirement applies specifically to dealers who sell used vehicles only, not new vehicle franchised dealers.

Protection and Coverage: The bond protects any person who may be aggrieved by violations of North Carolina motor vehicle dealer laws and regulations. This includes consumers who suffer financial losses due to a dealer's failure to comply with licensing requirements, fraudulent sales practices, or other violations of state motor vehicle statutes. The bond provides financial recourse for damages up to the bond amount.

Bond Details: Available in amounts of $25,000 or $50,000 depending on the dealer's business volume and regulatory requirements. The bond term is one year and must be renewed annually to maintain an active dealer license. Continuous coverage is essential as any lapse in the bond will result in license suspension or revocation.