Motor Vehicle Dealers - New or New and Used Vehicles

The State of Washington Vehicle Dealer Bond is a surety bond required for businesses engaged in selling new vehicles or both new and used vehicles in Washington State. This bond serves as a financial guarantee that the dealer will operate in accordance with state laws and regulations governing motor vehicle sales.

Motor vehicle dealers who sell new vehicles or a combination of new and used vehicles must obtain this bond as part of their licensing requirements with the State of Washington. The bond amount varies based on the dealer's business volume and type, with coverage amounts of $5,000 or $30,000 available.

This bond protects consumers and the State of Washington from financial losses that may result from the dealer's failure to comply with applicable laws, fraudulent business practices, or breach of contract. If a dealer violates state regulations or engages in deceptive practices, affected parties can file claims against the bond for compensation up to the bond amount.

The bond term is one year and must be renewed annually to maintain active dealer licensing. This bond is eligible for instant approval, allowing qualified applicants to receive their bond quickly to meet licensing deadlines.