Motor Vehicle Dealer Bond in Illinois

What this bond requires in Illinois

Per 625 ILCS 5/5-101 and 5/5-102, every new and used vehicle dealer must provide a $50,000 bond (or certificate of deposit) for each location. The bond runs to the People of the State of Illinois and is conditioned on the proper transmittal of title/registration fees and taxes (excluding ROT). New dealers must be bonded for at least the first 60 consecutive months of operation. Dealers file the Designated Agent Bond (Form RT DS-47) with the Secretary of State.

Who requires it

The motor vehicle dealer bond is required by the Illinois Secretary of State, Vehicle Services Department under 625 ILCS 5/5-101 and 625 ILCS 5/5-102.

How to file in Illinois

Dealer applicants submit the Designated Agent Bond (Form RT DS-47) along with the dealer license application package to the Illinois Secretary of State, Vehicle Services Department, Dealer/Remitter Section in Springfield. The bond must be issued by a surety company authorized to do business in Illinois, executed in the penal sum of $50,000 per location, and run to the People of the State of Illinois.

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FAQ

Common questions

Is a motor vehicle dealer bond required in Illinois?

Yes. Illinois requires motor vehicle dealer bonds issued by an admitted surety. The required amount is $50,000.

How much is the bond in Illinois?

The bond amount is $50,000. Your annual premium is a small percentage of that, based on credit and experience.

Who requires the bond?

The bond is required by the Illinois Secretary of State, Vehicle Services Department.

How is the bond filed?

Dealer applicants submit the Designated Agent Bond (Form RT DS-47) along with the dealer license application package to the Illinois Secretary of State, Vehicle Services Department, Dealer/Remitter Section in Springfield. The bond must be issued by a surety company authorized to do business in Illinois, executed in the penal sum of $50,000 per location, and run to the People of the State of Illinois.

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.