Typical Premium
$250–$1,250/yr
Required By
OH BMV Motor Vehicle Dealer Board
What Is the Ohio Motor Vehicle Dealer Bond?
Ohio Revised Code §4517.04 requires a $25,000 surety bond from every applicant for a motor vehicle dealer license. The bond is filed with the Motor Vehicle Dealer Board (under the Ohio Bureau of Motor Vehicles) and runs concurrently with the annual dealer license.
The bond protects:
- Retail buyers from title delivery failures and dealer fraud
- Lienholders for unsatisfied trade-in liens
- The State of Ohio for unremitted sales tax
- Persons damaged by violations of Chapter 4517
Who Needs This Bond in Ohio?
- New motor vehicle dealers — franchised manufacturer dealers
- Used motor vehicle dealers
- Wholesale dealers
- Auctions selling motor vehicles
- Salvage motor vehicle dealers — separate Salvage Motor Vehicle Dealer license
- Motorcycle, RV, and trailer dealers
Used dealer applicants must complete a 6-hour pre-licensing course at a Board-approved provider before the license can be issued.
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
- Complete the 6-hour pre-licensing course (used dealers; certain new-dealer categories may have alternate requirements).
- Apply for your bond using the form on this page.
- Compile premises documentation: zoning approval, lease, signage, office space.
- Submit MVDB application with bond, garage liability proof, and fees.
- Inspector visit by the Motor Vehicle Dealer Board before license issuance.
Renewal & Continuous Bond Coverage
Ohio dealer bonds run annually. The Dealer Board mails renewal notices 60 days before expiration. Bond cancellation results in immediate license suspension; reinstatement requires a new bond and may trigger Board review for repeat lapses.
Frequently Asked Questions
Are auctions licensed under the same bond?
Yes — auctions selling motor vehicles in Ohio post the same $25,000 bond and hold a Motor Vehicle Auction Owner license under Chapter 4517.
How is salvage dealer licensing different?
Salvage motor vehicle dealers hold a separate Salvage Motor Vehicle Dealer license, with its own bond requirement and operating restrictions. The standard $25,000 dealer bond does not cover salvage operations.
Does the Motor Vehicle Dealer Board investigate consumer complaints?
Yes. The Board administers complaints, conducts hearings, and can recommend bond claims, license suspension, or revocation. Most consumer disputes go through the Board first.
What's a common reason for license denial?
Failure to meet premises requirements (signage, office space, lot size) and incomplete paperwork. The bond requirement itself is rarely a denial reason if you can obtain one.
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Related: All Ohio 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.