Licensing

California Used Car Dealer Bonds by Type

Most California retail used-vehicle dealers file a $50,000 motor vehicle dealer bond with the DMV, but the requirement can vary by license type. Here is how the bond works, what it costs, and how to confirm your exact amount.

The California dealer bond

To sell vehicles in California you need a Department of Motor Vehicles dealer license, and that license requires a motor vehicle dealer bond filed with the DMV. For most retail used-vehicle dealers, that bond is $50,000 under California Vehicle Code §11710. The bond protects customers and the state if a dealer violates the Vehicle Code, for example by failing to clear a lien or deliver title.

Treat the $50,000 figure as general guidance for standard retail used dealers. Your license type sets your exact requirement, so confirm it on your DMV application or with the DMV directly.

Does it change by dealer type?

It can. California licenses several kinds of dealers, and the bond requirement is not identical for all of them. The amount can differ based on the class of license and the kind of vehicles you sell.

Retail used-vehicle dealers. The common case, generally the $50,000 bond.
Wholesale-only dealers. Dealers who sell only to other dealers can face a different, often lower, requirement.
Motorcycle and other specialty dealers. Certain classes have their own bond amounts set by the DMV.

Because the exact amount turns on your license class, do not assume. Confirm your specific requirement with the DMV before you file, and we will match the bond to it.

What it costs

You do not pay the full bond amount. You pay a premium, a percentage of the bond, set mostly by your personal credit. A $50,000 bond does not mean $50,000 out of pocket; it means an annual premium that is a fraction of that.

Strong credit earns the lowest rate. Challenged credit costs more but is still very placeable, because we shop multiple sureties rather than declining the file. Underwriting still applies, and there is no guaranteed rate until a surety reviews your information.

How to get one fast

Tell us your dealer license type and we will confirm the right bond amount, quote your premium, and issue quickly once you are approved. See the auto dealer bond page for details, browse our other commercial bonds, or start a quote now. Tougher credit is welcome.

Questions

FAQs

Reviewed by Michael Melshenker, CEO. Updated June 2026.

How much is a California car dealer bond?

For most retail used-vehicle dealers it is a $50,000 motor vehicle dealer bond filed with the DMV under Vehicle Code §11710. Some license types differ, so confirm your exact amount with the DMV.

Does the bond amount change by dealer type?

It can. Retail used dealers generally post $50,000, while wholesale-only, motorcycle, and other classes can have different amounts. The DMV sets the requirement by license class, so verify yours before filing.

Do I pay the full $50,000?

No. The $50,000 is the bond's face amount, not your cost. You pay an annual premium that is a percentage of it, based mostly on your credit. Strong credit means a lower rate.

Can I get a dealer bond with bad credit?

Usually yes. Weaker credit means a higher premium, not an automatic decline, because we shop multiple surety markets. Underwriting still applies, but hard-to-place dealer bonds are something we handle.