Motor Vehicle Dealer Bond in Hawaii

What this bond requires in Hawaii

Hawaii bond amount is tiered by dealer type and sales volume under HRS 437 and HAR 16-86-12: $50K/$200K for new vehicle dealers, $25K/$100K for used vehicle dealers, and $10K for motorcycle/motor scooter dealers. The bond is filed with the Motor Vehicle Industry Licensing Board within DCCA and must be issued by a surety authorized in Hawaii. The Board may accept a cash deposit in lieu of surety.

Who requires it

The motor vehicle dealer bond is required by the Hawaii Department of Commerce and Consumer Affairs (DCCA), Professional and Vocational Licensing Division - Motor Vehicle Industry Licensing Board under HRS Chapter 437 (Motor Vehicle Industry Licensing Act); HAR Title 16, Chapter 86 § 16-86-12.

How to file in Hawaii

Applicants complete the dealer/auction application checklist and submit the notarized DCCA-prescribed bond form (Bond-MOVE-13) along with proof of business location, fees, and supporting documents to the Motor Vehicle Industry Licensing Board within DCCA Professional and Vocational Licensing Division. The bond must be notarized by both principal and surety.

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FAQ

Common questions

Is a motor vehicle dealer bond required in Hawaii?

Yes. Hawaii requires motor vehicle dealer bonds issued by an admitted surety. The required amount is $10,000 to $200,000.

How much is the bond in Hawaii?

The bond amount is $10,000 to $200,000. Your annual premium is a small percentage of that, based on credit and experience.

Who requires the bond?

The bond is required by the Hawaii Department of Commerce and Consumer Affairs (DCCA), Professional and Vocational Licensing Division - Motor Vehicle Industry Licensing Board.

How is the bond filed?

Applicants complete the dealer/auction application checklist and submit the notarized DCCA-prescribed bond form (Bond-MOVE-13) along with proof of business location, fees, and supporting documents to the Motor Vehicle Industry Licensing Board within DCCA Professional and Vocational Licensing Division. The bond must be notarized by both principal and surety.

What does the bond cover?

Surety bonds protect the obligee, not the principal. If you fail to meet the obligation the bond guarantees, the surety pays the claim and recovers from you.

Is a surety bond the same as insurance?

No. Insurance protects you. A surety bond protects whoever required the bond. You repay the surety for any claim they pay.