What Is the North Carolina Motor Vehicle Dealer Bond?
Think of the North Carolina motor vehicle dealer bond as a promise to your buyers and the state. Wrong a customer, and they can claim against the bond. The surety collects from you after.
The North Carolina bond is set at $50,000.
Who Needs This Bond in North Carolina?
- Dealers who sell to the public in North Carolina must post the bond to be licensed.
- Wholesale and auction dealers are usually covered too.
- You keep the bond active each term.
How Much Will the Bond Cost?
Premium is credit-based. Most established dealers with good credit pay $500–$1,000 annually for the $50,000 bond:
| Credit Profile | Annual Premium | Approx. Rate |
|---|---|---|
| Excellent Credit | $500 – $750 | 1% – 1.5% |
| Good Credit | $750 – $1,250 | 1.5% – 2.5% |
| Fair Credit | $1,250 – $1,750 | 2.5% – 3.5% |
| Credit Challenges | $1,750 – $2,250 | 3.5% – 4.5% |
| Past Credit Issues | $2,250 – $2,500+ | 4.5% – 5%+ |
How to Get Bonded — Step by Step
- Apply for your dealer license.
- Buy your motor vehicle dealer bond here. We shop several sureties for your best rate.
- Send the bond to the NC DMV License & Theft Bureau.
- Once approved, get your license and start selling.
Renewal & Continuous Bond Coverage
Your North Carolina dealer license runs on a set cycle (every year). Do not let the bond lapse. A lapse can cost you your license.
Frequently Asked Questions
Does the North Carolina bond protect me?
No. The bond protects your customers and the state, not you. If a claim is paid, you repay the surety. It is not insurance for you.
How fast can I get bonded in North Carolina?
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. Good credit means a lower rate.
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.
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Start Your ApplicationRelated: All North Carolina surety bonds · What is a surety bond? · How surety bond costs are calculated