Motor Vehicle Dealers - Used Vehicles Only

The Vehicle Possessory Lien Bond is a surety bond required by the Oregon Department of Motor Vehicles (DMV) for certain motor vehicle dealers who need to file mechanic's lien applications. This requirement became effective January 1, 2022, as part of Oregon's enhanced consumer protection measures.

Who Needs This Bond: Motor vehicle dealers who deal exclusively in used vehicles and wish to file mechanic's lien applications with the Oregon DMV. This requirement does not apply to franchised dealerships, manufacturers, towing businesses, or national auction companies, which are exempt from this bonding requirement.

Bond Protection: This bond protects the State of Oregon and consumers from potential financial harm that could result from improper or fraudulent mechanic's lien filings. It ensures that dealers who file lien applications have financial backing to cover any damages that may arise from their lien activities.

Bond Details: The bond amount is set at $20,000 and has a one-year term. The bond is renewable annually, allowing dealers to maintain continuous compliance with Oregon DMV requirements. Dealers must maintain this bond on file with the DMV as long as they intend to file mechanic's lien applications.