Motor Vehicle Dealers - Used Vehicles Only
Required for motor vehicle dealers, crushers, and body shops operating in Utah. Protects the state and consumers from financial harm due to violations of motor vehicle regulations.
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About This Bond
The State of Utah Bond of Motor Vehicle Dealer, Crusher or Body Shop 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 motor vehicle regulations and licensing requirements.
Motor vehicle dealers (particularly used vehicle dealers), auto crushers, and body shops must obtain this bond as part of their licensing process with the State of Utah. The bond serves as a financial guarantee that these businesses will operate in accordance with Utah's motor vehicle laws and regulations.
The bond protects the State of Utah and consumers from financial losses that may result from the principal's failure to comply with applicable laws, fraudulent practices, or other violations of their licensing requirements. Coverage amounts vary based on the type of operation: $10,000, $20,000, or $75,000.
This is a one-year renewable bond, and businesses must maintain continuous coverage to keep their licenses active. When applying, a "Principal County" must be specified, as bonds submitted 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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