Typical Premium
$245–$1,750/yr
Required By
GA State Board of Used Motor Vehicle Dealers
What Is the Georgia Used Motor Vehicle Dealer Bond?
Under Georgia Code §43-47-7, every applicant for a used motor vehicle dealer or used parts dealer license must file a $35,000 surety bond with the State Board. The bond is issued in favor of any person damaged by the dealer's:
- Failure to deliver a clear title within 30 days of sale
- Misrepresentation of vehicle condition or odometer reading
- Failure to satisfy a prior lien on a trade-in
- Operation outside the scope of the dealer license (i.e., curbstoning)
- Sales-tax collected and not remitted to the Georgia Department of Revenue
Georgia raised the bond amount to $35,000 in 2018 (previously $20,000), reflecting heightened consumer-protection standards.
Who Needs This Bond in Georgia?
- Used motor vehicle dealers — retail and wholesale
- Used motor vehicle parts dealers (recyclers, dismantlers, scrap processors)
- Auctioneers licensed to sell used motor vehicles
- Out-of-state dealers who maintain a Georgia location or hold a Georgia license
New-car franchise dealers are licensed separately by the State Board of Registration of Motor Vehicle Dealers and post a different bond.
How Much Will the Bond Cost?
Premiums for the $35,000 Georgia used dealer bond are credit-driven. Most established dealers with clean credit pay near the floor of the range.
| Credit Profile | Annual Premium | Approx. Rate |
|---|
| Excellent Credit | $245 – $350 | 0.7% – 1% |
| Good Credit | $350 – $525 | 1% – 1.5% |
| Fair Credit | $525 – $875 | 1.5% – 2.5% |
| Credit Challenges | $875 – $1,400 | 2.5% – 4% |
| Past Credit Issues | $1,400 – $1,750+ | 4% – 5%+ |
How to Get Bonded — Step by Step
- Complete the pre-licensing seminar required for first-time applicants (4 hours, board-approved).
- Apply for your bond — submit the form on this page.
- Underwriting — soft credit pull, same-day quote in most cases.
- Receive bond document for filing with your state license application.
- Submit application package to the State Board with bond, garage liability proof, and zoning verification.
Renewal & Continuous Bond Coverage
Georgia used dealer bonds renew annually with the dealer license. The State Board sends renewal notices about 60 days before expiration; lapsed bonds result in immediate suspension and inability to legally transact title work or display dealer plates.
Frequently Asked Questions
Do parts dealers need the same $35,000 bond?
Yes. Used motor vehicle parts dealers, dismantlers, and scrap processors are governed under the same statute and post the same $35,000 bond.
How is this different from the new-car (franchise) dealer bond?
Franchise dealers are licensed by a different state board and historically post a $50,000 bond. The two boards and bond requirements are separate.
Can I be denied a license because of the bond?
The state won't deny you for the bond itself if you successfully obtain one. However, if no surety will write you (extremely rare), you cannot complete licensure. There are markets that specialize in challenged-credit dealer bonds.
What does the Georgia Department of Revenue consider when reviewing claims?
The Department primarily looks at unremitted sales tax. If you collected tax from a buyer at point of sale and didn't forward it, the state may file a claim against the bond.
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Related: All Georgia 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.