Motor Vehicle Dealers - New or New and Used Vehicles

The Director of Tennessee Motor Vehicle Commission - Motor Vehicle Dealer Bond is a surety bond required for businesses engaged in selling new motor vehicles or both new and used motor vehicles in Tennessee. This bond ensures compliance with state motor vehicle dealer licensing 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 with the Tennessee Motor Vehicle Commission. The bond serves as a financial guarantee that the dealer will operate in accordance with all applicable state laws and regulations governing motor vehicle sales.

This bond protects both consumers and the Director of Tennessee Motor Vehicle Commission from financial losses resulting from the dealer's failure to comply with licensing requirements, fraudulent practices, or violations of motor vehicle sales laws. If a dealer engages in prohibited activities or fails to fulfill their legal obligations, affected parties may file claims against the bond for compensation.

The bond is issued in the amount of $50,000 and has a term length of 2 years. This bond is renewable, allowing dealers to maintain continuous coverage and compliance with state licensing requirements throughout their business operations.