California Auto Dealer Bond

To sell cars in California, you need a $50,000 auto dealer bond. It goes to the CA DMV Occupational Licensing. It is a standard license step.

Bond Amount
$50,000
Typical Premium
$500–$2,500/yr
Term
1 Year
Required By
CA DMV Occupational Licensing
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What Is the California Auto Dealer Bond?

Think of the California auto dealer bond as a promise to your buyers and the state. Break a dealer rule, and they can claim against the bond. The surety collects from you after.

The California bond is set at $50,000.

Who Needs This Bond in California?

How Much Will the Bond Cost?

Premiums for the $50,000 California dealer bond are credit-driven. Most established dealers pay $500–$1,000 per year.

Credit ProfileAnnual PremiumApprox. Rate
Excellent Credit$500 – $7501% – 1.5%
Good Credit$750 – $1,2501.5% – 2.5%
Fair Credit$1,250 – $1,7502.5% – 3.5%
Credit Challenges$1,750 – $2,500+3.5% – 5%+

How to Get Bonded — Step by Step

  1. Gather your California dealer paperwork.
  2. Buy your auto dealer bond online here — same-day issuance for many.
  3. Send it to the CA DMV Occupational Licensing.
  4. Once cleared, get your license and sell cars.

Renewal & Continuous Bond Coverage

Plan to renew your California dealer bond every year. Line it up before the deadline so your license never drops.

Frequently Asked Questions

Does the California bond protect me?

No. The bond protects your customers and the state, not you. If a claim is paid, you pay the surety back. It is not insurance for you.

How fast can I get bonded in California?

Most quotes come back fast, often within a day. Many bonds are issued the same day for good credit.

How much does the bond cost?

You pay a yearly premium — a small percent of the bond amount. Your rate depends mostly on your credit.

How a Surety Bond Works

A dealer bond is a type of surety bond. The picture below shows the three parties and what happens if someone files a claim.

Diagram of how a surety bond works: the obligee requires the bond, the principal applies and signs an indemnity agreement, and the surety issues the bond; if the principal fails, the obligee files a claim, the surety investigates and may pay, and the principal reimburses the surety.

Ready to get your California Auto Dealer Bond?

Apply in 2 minutes. Most quotes returned same day.

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This Auto Dealer Bond in other states
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Other California surety bonds
Budget and Credit Counseling Agency Bond · Contractor License Bond · Debt Collector Bond · Freight Broker Bond (BMC-84) · Insurance Broker's Bond · Notary Public Bond · Residential Mortgage Lender / Broker Bond

Related: All California surety bonds · What is a surety bond? · How surety bond costs are calculated

Underwriting Disclosure. All surety bond applications are subject to underwriting review and approval by the issuing surety company. Quoted premiums are estimates only; final pricing is determined by individual underwriting factors, which may include personal and business credit history, financial statements, industry experience, and claims history. Many bonds qualify for instant online approval, while others may require additional documentation, financial review, or indemnitor signatures prior to issuance. SuretyBondly makes no representation, warranty, or guarantee of approval, eligibility, premium amount, bond form, or issuance timing. Bond amounts, forms, and requirements are governed by the applicable obligee and statutory authority and may change without notice. Information provided on this page is for general informational purposes only and does not constitute legal, financial, or tax advice.