Motor Vehicle Dealer Bond in Washington

What this bond requires in Washington

Per RCW 46.70.070, every motor vehicle dealer must file a $30,000 surety bond running to the State of Washington, approved by the Attorney General as to form, conditioned that the dealer will conduct business in conformity with chapter 46.70 RCW. Dealers must maintain a separate bond for each business location and bond coverage for all temporary subagencies. Upon exhaustion of the bond penalty or cancellation of the bond by the surety, the vehicle dealer license is automatically deemed cancelled.

Who requires it

The motor vehicle dealer bond is required by the Washington State Department of Licensing (Vehicle and Boat Dealers Program) under RCW 46.70.070.

How to file in Washington

Obtain a Vehicle/Vessel Dealer Business Bond from a surety company authorized in Washington. The principal name on the bond must exactly match the business owner and business firm name on the license application, and the bond must be signed by the applicant and the surety attorney-in-fact. Submit the original bond with the dealer license application package through the Department of Revenue Business Licensing Service, which forwards licensing materials to the Department of Licensing for review and issuance.

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FAQ

Common questions

Is a motor vehicle dealer bond required in Washington?

Yes. Washington requires motor vehicle dealer bonds issued by an admitted surety. The required amount is $30,000.

How much is the bond in Washington?

The bond amount is $30,000. Your annual premium is a small percentage of that, based on credit and experience.

Who requires the bond?

The bond is required by the Washington State Department of Licensing (Vehicle and Boat Dealers Program).

How is the bond filed?

Obtain a Vehicle/Vessel Dealer Business Bond from a surety company authorized in Washington. The principal name on the bond must exactly match the business owner and business firm name on the license application, and the bond must be signed by the applicant and the surety attorney-in-fact. Submit the original bond with the dealer license application package through the Department of Revenue Business Licensing Service, which forwards licensing materials to the Department of Licensing for review and issuance.

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.