Motor Vehicle Dealers - New or New and Used Vehicles

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

Motor vehicle dealerships that sell new vehicles or a combination of new and used vehicles must obtain this bond as part of their licensing requirements. The bond ensures dealers comply with state regulations governing vehicle sales, financing, warranties, and consumer protection standards.

The bond protects both the State of North Dakota and consumers from potential financial losses resulting from fraudulent practices, failure to deliver clear titles, misrepresentation of vehicles, or other violations of state motor vehicle dealer laws. If a dealer fails to fulfill their legal obligations, affected parties can file claims against the bond for compensation.

This bond requires a $25,000 coverage amount and has a one-year term. The bond is renewable annually, and dealers must maintain continuous coverage to keep their license active and remain in compliance with state requirements.