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Dealer Surety Bond
The California DMV requires a $10,000 surety bond for wholesale-only dealers who sell fewer than 25 vehicles per year. Buy yours for $100 flat, no SSN, no credit check. We file your motor vehicle dealer bond electronically with DMV Occupational Licensing.
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Coverage amount$10,000
Term1 year
StateCalifornia
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1. Share the basics
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At a glance
California Auto Dealer Bond Key Facts
Coverage amount$50,000 standard; $10,000 for motorcycle/ATV-only or small wholesale-only dealers
Available terms1, 2, or 3 years, subject to approval
Governing authorityCalifornia Department of Motor Vehicles (DMV) — Occupational Licensing
Governed by Cal. Veh. Code §§ 11710, 11710.1.
The basics
What Is an Auto Dealer Bond in California?
A California auto dealer bond is a surety bond you must file with the DMV to get or keep a motor vehicle dealer license. California calls it a "Dealer Surety Bond" (DMV form OL 25). For most dealers the required amount is $50,000; it drops to $10,000 if you deal only in motorcycles or all-terrain vehicles, or you sell on a wholesale basis only and sell fewer than 25 vehicles per year.
Good to know - Required for every California motor vehicle dealer. The amount depends on your dealer type: $50,000 for most new and used dealers, or $10,000 if you deal exclusively in motorcycles or all-terrain vehicles (ATVs), or sell on a wholesale basis only and sell fewer than 25 vehicles per year.
The bond is a promise that you will follow California’s vehicle laws and pay valid claims. If you cheat a customer, fail to pay off a trade-in lien, or break the Vehicle Code, a buyer, seller, lender, or government agency can file a claim against your bond up to its full amount.
The bond protects the public — not you. If a claim is paid, you must repay the surety company. The bond is required in addition to your license fees, and it must stay active for as long as you hold your dealer license.
Qualification
What You Need to Qualify for a California Auto Dealer Bond
Approval depends on your dealer license type, required coverage amount, and underwriting factors such as credit.
- You are applying for, or renewing, a California motor vehicle dealer license through DMV Occupational Licensing.
- You know your dealer type, which sets your bond amount: $50,000 for most new and used dealers, or $10,000 for motorcycle/ATV-only dealers or wholesale-only dealers who sell fewer than 25 vehicles per year.
- Your bond is written by a surety company authorized (admitted) to do business in California.
- You can keep the bond active without any lapse — a gap in coverage causes the DMV to cancel your license.
- You have your business details ready (legal business name, ownership, and California business location) for the bond and application forms.
Step by step
How to Get an Auto Dealer Bond in California: Step by Step
1
Choose your dealer type and bond amount
Decide which California dealer license you need. Most new and used dealers post a $50,000 bond. If you deal only in motorcycles or ATVs, or you sell wholesale only and move fewer than 25 vehicles per year, your bond is $10,000.
Tip: The wrong amount will delay your license — confirm your dealer type before you buy the bond.
2
Get your surety bond
Buy your bond and we handle the paperwork. We issue your California Dealer Surety Bond on the correct DMV form — OL 25 for a standard dealer bond, or OL 25B for a motorcycle/ATV or qualifying wholesale-only dealer — and in most cases file it electronically with the DMV for you. There is no bond form for you to download or complete.
Tip: Your bond is written by a surety company authorized to do business in California.
3
Complete your occupational license application
Fill out the Application for Original Occupational License (OL 12) and the rest of the dealer application packet for your dealer type (OL 248N for new dealers, OL 248U for used dealers). New dealers also complete a Live Scan request (DMV 8016).
Application for Original Occupational License (OL 12)Tip: Check the application packet checklist so nothing is missing — incomplete packets are returned.
4
File your application with the DMV
Submit your completed application package and fees to DMV Occupational Licensing. We make sure your bond is on file with the DMV — it must be accepted before your dealer license takes effect.
New Dealer Application Forms Packet (OL 248N)Tip: Call DMV Occupational Licensing at (916) 229-3126 to confirm current submission steps.
5
Keep your bond active
Bonds are available in 1, 2, or 3 year terms. Whatever term you choose, renew before it ends — California requires continuous coverage, and a lapse causes the DMV to cancel your dealer license.
Tip: Set a renewal reminder well before your bond’s expiration date.
Paperwork
California Dealer Bond Forms & Documents
Dealer Surety BondOL 25
The standard $50,000 dealer bond — we issue this and, in most cases, file it electronically with the DMV for you.
View formSurety Bond of Motorcycle Dealer / Wholesale-Only Dealer (under 25 vehicles/year)OL 25B
The $10,000 bond form for motorcycle/ATV dealers and qualifying wholesale-only dealers.
View formApplication for Original Occupational LicenseOL 12
The base occupational license application for a dealer.
View formNew Dealer Application Forms PacketOL 248N
Forms, fees, and filing instructions for a new vehicle dealer.
View formUsed Dealer or Wholesale-Only Dealer Application ChecklistOL 248B
Application checklist for used and wholesale-only dealers.
View formYou'll also need
Your California Dealer Surety Bond (OL 25 or OL 25B) — we issue and file this for you
Completed occupational license application (OL 12) and your dealer packet
Live Scan fingerprint clearance request (DMV 8016) for new dealers
Proof of your California business location and legal business name
Government-issued photo ID for each owner or partner listed
Cost
How California Auto Dealer Bond Pricing Works
You do not pay the full bond amount. The $50,000 or $10,000 figure is the coverage — the most a claim can collect. You pay a premium, which is a small percentage of that amount.
Your premium is set by underwriting, mostly your personal credit. Well-qualified applicants pay a low rate; higher-risk applicants pay more. The premium is separate from your DMV license fees.
Worked example
If your dealer license requires a $50,000 bond, you do not pay $50,000 — you pay a premium, often a few hundred dollars a year for well-qualified applicants. Motorcycle/ATV-only and qualifying wholesale-only dealers post a $10,000 bond and pay even less.
Filing
Filing Information
California Department of Motor Vehicles (DMV) — Occupational Licensing
Filing notes
Your surety bond — form OL 25, or OL 25B for motorcycle/ATV or qualifying wholesale-only dealers — must be on file with DMV Occupational Licensing before your dealer license takes effect.
Coverage must stay continuous. A lapse in your bond will cause the DMV to cancel your dealer license, so renew on time.
We prepare and issue your bond and send you the original to include with your DMV dealer license application package.
Where to fileFile your signed bond with your dealer license application package. Submit it to DMV Occupational Licensing using the address and instructions on your application packet (OL 248N for new dealers, OL 248U for used dealers).
FAQ
California Auto Dealer Bond FAQ
Yes. Every licensed California motor vehicle dealer must keep a surety bond on file with the DMV. The standard amount is $50,000 (Cal. Veh. Code § 11710).
It is $50,000 for most new and used dealers. The amount drops to $10,000 if you deal only in motorcycles or ATVs, or you sell wholesale only and sell fewer than 25 vehicles per year (Cal. Veh. Code §§ 11710, 11710.1).
Form OL 25 (Dealer Surety Bond) for the standard $50,000 bond. Motorcycle/ATV dealers and qualifying wholesale-only dealers use form OL 25B for the $10,000 bond.
Yes. Wholesale-only dealers still need a bond. If you sell fewer than 25 vehicles per year on a wholesale basis only, your bond amount is $10,000 instead of $50,000.
You pay a premium, not the full bond amount. The premium is a small percentage of the $50,000 or $10,000 coverage, based mainly on your credit. Start a quote to see your rate.
Auto dealer bonds are available in 1, 2, or 3 year terms. Whichever term you choose, California requires continuous coverage — renew before it expires, or the DMV will cancel your dealer license.
You file the signed bond with your dealer license application package at DMV Occupational Licensing. The bond must be on file and accepted before your license takes effect. Questions: (916) 229-3126.
Sources
CA DMV — Vehicle Dealer License (forms, fees, requirements)CA DMV — Occupational LicensingCA DMV — Occupational Licensing FormsCA DMV — Dealer Surety Bond (OL 25) formCA DMV — Surety Bond of Motorcycle Dealer / wholesale-only under 25 vehicles (OL 25B) formCal. Veh. Code § 11710 ($50,000 dealer bond; $10,000 motorcycle/ATV)Cal. Veh. Code § 11710.1 ($10,000 wholesale-only under 25 vehicles/year)
Last verified 2026-06-30. Requirements change - confirm current details with California Department of Motor Vehicles (DMV) — Occupational Licensing before you file. This page is informational and not legal advice.
FAQ
California Auto Dealer Bond Questions
A California auto dealer bond on this page is a flat, fixed premium — the same price for every applicant, with no credit check required.
Many auto dealer bonds can be issued the same day after you complete the application. Larger bond amounts or applications that need underwriting review may take longer.
California has different bond requirements depending on the license type. California commonly requires a $10,000 wholesale dealer bond for wholesale-only dealers selling fewer than 25 vehicles per year, and a $50,000 motor vehicle dealer bond for many retail and motor vehicle dealer licenses.
Yes. In California, wholesale-only dealers may need the $10,000 wholesale dealer bond, while many retail and motor vehicle dealers need the $50,000 motor vehicle dealer bond. Choose the bond that matches your license instructions.
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AutoDealersBond.com is operated by Shield Liability Insurance Agency, a California and Texas licensed insurance agency (CA License #6018195, TX License #3446536). Shield Liability Insurance Agency is not an insurance carrier and does not underwrite bonds or insurance policies. Bond and coverage availability, pricing, and issuance are subject to carrier underwriting approval, eligibility, applicable state requirements, and policy or bond terms. Availability varies by state.
