Motor Vehicle Dealers - New or New and Used Vehicles
Required for motor vehicle dealers, crushers, and body shops operating in Utah. Protects the state and consumers from fraudulent business practices.
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About This Bond
The State of Utah Motor Vehicle Dealer, Crusher or Body Shop Bond is a surety bond required for businesses engaged in motor vehicle sales, crushing operations, or body shop services within Utah. This bond ensures compliance with state regulations governing the motor vehicle industry.
Motor vehicle dealers selling new or used vehicles, auto crushers, and body shops must obtain this bond as part of their licensing requirements with the State of Utah. The bond amount varies based on the type and scope of operations, with coverage levels of $10,000, $20,000, or $75,000.
This bond protects the State of Utah and consumers from financial losses resulting from fraudulent business practices, failure to comply with state motor vehicle laws, or other violations of licensing requirements. If a bonded business fails to meet its obligations, affected parties can file claims against the bond for compensation.
The bond term is one year and is renewable annually. When applying for this bond, a principal county must be designated, as applications without this information will be rejected by the state obligee.
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FAQ
Utah Auto Dealer Bond Questions
The cost of a Utah auto dealer bond is usually a small percentage of the state-required bond amount. Your exact premium depends on the bond amount, license type, business details, and underwriting factors such as credit.
Many auto dealer bonds can be issued the same day after you complete the application. Larger bond amounts or applications that need underwriting review may take longer.
Requirements vary by license type, but most Utah auto dealers need to complete a short application and purchase the bond amount required by the state before their license can be issued or renewed.
Often, yes. Many states have separate bond requirements for wholesale, retail, broker, or other dealer license types. Choose the bond that matches your Utah license instructions.
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