What Is the Ohio Motor Vehicle Dealer Bond?
A Ohio motor vehicle dealer bond is a money guarantee. It protects your buyers, not you. If a customer is wronged, they can claim against it. The surety pays them, then you pay the surety back.
The Ohio bond is set at $25,000.
Who Needs This Bond in Ohio?
- New and used car dealers in Ohio must carry the bond to get a dealer license.
- Dealers who sell to other dealers need it too.
- At renewal, you keep the bond active.
How Much Will the Bond Cost?
Premium is credit-priced. Most established dealers with clean credit pay $250–$500 annually:
| Credit Profile | Annual Premium | Approx. Rate |
|---|---|---|
| Excellent Credit | $250 – $375 | 1% – 1.5% |
| Good Credit | $375 – $625 | 1.5% – 2.5% |
| Fair Credit | $625 – $875 | 2.5% – 3.5% |
| Credit Challenges | $875 – $1,000 | 3.5% – 4% |
| Past Credit Issues | $1,000 – $1,250+ | 4% – 5%+ |
How to Get Bonded — Step by Step
- Apply for the bond on this page. Approval is quick for most dealers.
- Complete your dealer application.
- Turn in the bond with the OH BMV Motor Vehicle Dealer Board.
- Get licensed and open for business.
Renewal & Continuous Bond Coverage
Ohio dealer licenses come up for renewal every year. Your bond must stay in force the whole time. Renew early so you do not lose your license.
Frequently Asked Questions
Does the Ohio bond protect me?
No. The bond protects your customers and the state, not you. If a claim is paid, you repay the surety. The bond is not your own insurance.
How fast can I get bonded in Ohio?
We shop several sureties for you, 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.
Ready to get your Ohio Motor Vehicle Dealer Bond?
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Start Your ApplicationRelated: All Ohio surety bonds · What is a surety bond? · How surety bond costs are calculated