State of California - Dealer Surety Bond (Vehicle Code Section 11710)
Required for California used vehicle dealers to obtain and maintain their dealer license under Vehicle Code Section 11710. Protects consumers from dealer violations.
Fast approvals and straightforward guidance.
— Josh A., Los Angeles, CA via Google
Simple, fast, and dealer-ready
Why Choose Us
Licensed Agents
Bond experts
US-Based Support
Real help, fast.
Fast Turnaround
Quotes in minutes.
Competitive Rates
Top carriers, low rates.
Details
About This Bond
The California Dealer Surety Bond is required under Vehicle Code Section 11710 for used vehicle dealers seeking to obtain or renew their dealer license in California. This bond ensures compliance with state regulations governing the sale of used motor vehicles.
Who Needs This Bond: Used vehicle dealers operating in California must secure this bond as part of their licensing requirements. Franchise dealers with multiple locations may need additional bonds based on their classification - Class 2 requires one $50,000 bond, Class 3 requires two bonds totaling $100,000, and Class 4 requires three or more bonds totaling $150,000 or more in aggregate coverage.
Protection and Coverage: The bond protects consumers and the State of California against financial losses resulting from dealer violations of state vehicle codes and regulations. This includes protection against fraudulent practices, failure to transfer titles properly, or other violations of dealer licensing requirements.
Bond Details: The standard bond amount is $50,000 with a one-year term. The bond is renewable annually and requires a signed application effective July 1, 2024. Pre-paid terms may be available upon underwriter approval.
Here's how it works
1. Share the basics
A few quick questions. No paperwork.
2. See your options
Clear quotes. No surprises.
3. Get covered
We'll take it from here.
At a glance
California Auto Dealer Bond Key Facts
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
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.
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.
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)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)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.
Paperwork
California Dealer Bond Forms & Documents
The standard $50,000 dealer bond — we issue this and, in most cases, file it electronically with the DMV for you.
View formThe $10,000 bond form for motorcycle/ATV dealers and qualifying wholesale-only dealers.
View formThe base occupational license application for a dealer.
View formForms, fees, and filing instructions for a new vehicle dealer.
View formApplication checklist for used and wholesale-only dealers.
View formYou'll also need
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.
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
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
The cost of a California auto dealer bond is usually a small percentage of the state-required bond amount. Your exact premium depends on the bond amount, license type, business details, and underwriting factors such as credit.
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.
Ready to get started?
Have questions? Call or text +1 (888) 900-8038 to talk with a specialist or
Explore
Contact
Simple. Fast. Trusted
Shield Liability Insurance Agency
515 S Flower ST, Fl 18, Los Angeles, CA 90071
© 2026 Shield Liability Insurance Agency | Privacy Policy | Terms of Service | Contact
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.
