Motor Vehicle Dealers - Used Vehicles Only

The Motor Vehicle Dealer/Manufacturer bond is a surety bond required by the State of Pennsylvania for businesses engaged in the sale of used motor vehicles. This bond ensures that dealers comply with all applicable state laws and regulations governing motor vehicle sales.

Who needs this bond: Used motor vehicle dealers operating in Pennsylvania must obtain this bond as part of their licensing requirements. This includes independent used car lots, dealerships specializing in pre-owned vehicles, and other businesses primarily engaged in selling previously owned motor vehicles to consumers.

Protection provided: The bond protects the State of Pennsylvania and consumers from financial losses resulting from the dealer's failure to comply with state motor vehicle laws, fraudulent business practices, or violations of consumer protection regulations. If a dealer engages in prohibited activities or fails to fulfill their legal obligations, affected parties can file claims against the bond for compensation.

Bond details: This $20,000 bond has a one-year term and must be renewed annually to maintain the dealer's license in good standing. The bond remains in effect as long as the dealer maintains their license and continues operations in Pennsylvania.