All types of vehicle dealers in California need to get an auto dealer bond before starting operations in the state. This is required by the Department of Motor Vehicles.
This means you’ll need a California DMV dealer bond if you’re a:
The cost of your dealer bond depends on the strength of your personal and business finances. Keep in mind that your credit score is the main factor in determining the price. The cost also depends on whether you are obtaining a bond for one or two years, as this type of bond can be issued for a two-year period.
The actual price of your bond is a fraction of the required bond amounts. In the case of California dealer bonds, they are $10,000 or $50,000, depending on the license type.
How much do you have to pay for a California dealer bond? Check out the table below for a quick reference.
|California Auto Dealer Bond Cost Table|
|State and Dealer Type||Bond Amount||Starting Price|
|California retail vehicle dealers including:
- New and Used vehicle dealers
- Wholesale vehicle dealers selling more than 25 vehicles per year
|- California motorcycle dealers
- California all-terrain dealers
- Wholesale dealers selling less than 25 vehicles per year
Yes, you can. However, it’s more difficult to obtain a California motor vehicle surety bond if your finances are not in top shape. Your credit score is among the most important criteria for setting your bond cost.
We aim to offer bonding options to dealers even if they’re having financial difficulties. We’re a close-knit family business that wants to support dealers on their way to success.
Your dealer bond ensures you will follow the law in your operations as a car dealer in California.
This means it protects your customers from:
The bond works as a safety net that you as the principal will stick to your legal obligations, as set by the obligee (the licensing authority). This is guaranteed by the surety which backs your business.
You can get your California auto dealer surety bond by following our simple step-by-step process:
We can issue your auto dealer bond the same day if all necessary documents and payments are received. Our proprietary process involves various methods to help speed things up just for you, so YCDB makes things super easy for you. This is the key reason we are one of the fastest local, family-owned surety bond services in California!
Getting a DMV dealer license in California is a rigorous process.
You’ll need to go through a couple of administrative procedures and get a bunch of documents, including:
For further information, you can check our guide on flipping cars in California.
Your Car Dealer Bond (YCDB) was founded in 2011 as a premium Surety Bond Agency in Fremont, California by Mike Ramos. Since this time, YCDB established headquarters in Fresno with production offices in Bakersfield and Corona. YCDB is a local family-operated company that has grown steadily since its inception.
YCDB has issued over 10,000 bonds in California. Our experience in the used car dealer field for over two decades validates YCDB’s ideal balance of professionalism, competitive pricing, and proficiency.