District of Columbia Auto Dealer Bonds
Auto dealer bonds protect consumers and the state. The bond amount and license type required depend on your state's DMV.
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At a glance
District of Columbia Auto Dealer Bond Key Facts
Governed by D.C. Code § 50-603.
The basics
What Is an Auto Dealer Bond in District of Columbia?
A District of Columbia auto dealer bond is a $25,000 surety bond you must file with the Department of Licensing and Consumer Protection (DLCP) to get or keep a Motor Vehicle Dealer license. DC calls it the "Motor Vehicle Dealer Bond." The amount is a flat $25,000 for every dealer category, including used car lots.
Good to know - Required for every District of Columbia motor vehicle dealer, including used car lots. The bond is a flat $25,000 no matter your dealer type, and it must stay in force for your full DLCP license period. Licenses are issued for 2 years ($99) or 4 years ($198).
The bond is a promise that you will follow the District's vehicle and consumer-protection laws. If you cheat a customer, fail to deliver a clear title, or break DC law, anyone harmed can file a claim against your bond up to its $25,000 limit.
The bond protects the public - not you. If the surety pays a claim, you must pay that money back. 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 District of Columbia 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 District of Columbia Motor Vehicle Dealer license (a Vehicular Services Basic Business License) through DLCP.
- You can post a $25,000 Motor Vehicle Dealer Bond - the amount is a flat $25,000 for every dealer category, including used car lots.
- Your bond is written by an insurance carrier or surety company authorized to do business in the District of Columbia.
- You can keep the bond active without any lapse for your full DLCP license period (licenses are issued for 2 or 4 years).
- You have your business details ready (legal business name, ownership, and DC business location) for the bond and license application.
Step by step
How to Get an Auto Dealer Bond in District of Columbia: Step by Step
Confirm you need a DC dealer license and bond
Any business that sells motor vehicles in the District needs a Motor Vehicle Dealer license from DLCP, and that license requires a $25,000 Motor Vehicle Dealer Bond. The same $25,000 bond applies to used car lots.
Get your $25,000 Motor Vehicle Dealer Bond
Buy your bond and we handle the paperwork. We issue your $25,000 Motor Vehicle Dealer Bond on the official DLCP form and send it to you to include with your license application. There is no bond form for you to download or complete.
Gather your supporting documents
Collect the items DLCP requires with your application: a Clean Hands certificate from the Office of Tax and Revenue, a Certificate of Occupancy from the Department of Buildings, a police criminal history report, and your tax registration.
Apply for your Basic Business License
Apply for the Motor Vehicle Dealer Basic Business License online through the My DC Business Center, or in person at the DLCP Business License Center. Pay $99 for a 2-year license or $198 for a 4-year license.
Basic Business License application (Motor Vehicle Dealer)Keep your bond and license current
Your bond must stay in force for your full DLCP license period. Renew the bond before it ends so coverage never lapses, and renew your Motor Vehicle Dealer license before it expires.
Paperwork
District of Columbia Dealer Bond Forms & Documents
The official $25,000 DLCP bond form - we issue this for you, so you do not fill it out. Shown here for reference.
View formThe license application you complete and submit through My DC Business Center.
View formIssued by the DC Office of Tax and Revenue; required with your application. Originals only.
Issued by the DC Department of Buildings for your business location.
You'll also need
Cost
How District of Columbia Auto Dealer Bond Pricing Works
You do not pay the full bond amount. The $25,000 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 DLCP license fees.
Worked example
DC requires a $25,000 bond, but you do not pay $25,000. You pay a premium - often a small percentage of the bond amount - which for well-qualified applicants can be a modest yearly cost. Start a quote to see your rate.
Filing
Filing Information
District of Columbia Department of Licensing and Consumer Protection (DLCP) - Business Licensing Division
Filing notes
Your $25,000 Motor Vehicle Dealer Bond must be on file with DLCP before your Motor Vehicle Dealer license is issued.
We issue your bond on the official DLCP Motor Vehicle Dealer Bond form and send it to you to include with your Basic Business License application - there is no bond form for you to fill out.
Coverage must run for your full DLCP license period. Renew your bond on time so it never lapses while your license is active. DLCP also allows a cash bond posted directly with the Department, but a surety bond avoids tying up $25,000 of your own cash.
FAQ
District of Columbia Auto Dealer Bond FAQ
Yes. Every applicant for a DC Motor Vehicle Dealer license must post a $25,000 Motor Vehicle Dealer Bond (D.C. Code § 50-603).
It is a flat $25,000 for every dealer category, including used car lots. The amount does not change based on dealer type.
The DC Department of Licensing and Consumer Protection (DLCP) requires it. Your bond must be on file with DLCP before your Motor Vehicle Dealer license is issued. We issue the bond on the official DLCP form and send it to you to include with your application.
No. We issue your $25,000 bond on the official DLCP Motor Vehicle Dealer Bond form and provide the completed bond to you. You submit it with your Basic Business License application.
DLCP allows either a surety bond or a cash bond posted directly with the Department. A surety bond is the usual path because it avoids tying up $25,000 of your own cash.
You pay a premium, not the full $25,000. The premium is a small percentage of the bond amount, based mainly on your credit. Start a quote to see your rate.
Your bond must stay in force for your full DLCP license period. DC licenses are issued for 2 years ($99) or 4 years ($198), so renew your bond before it ends to keep coverage from lapsing.
Sources
Last verified 2026-06-30. Requirements change - confirm current details with District of Columbia Department of Licensing and Consumer Protection (DLCP) - Business Licensing Division before you file. This page is informational and not legal advice.
FAQ
District of Columbia Auto Dealer Bond Questions
The cost of a District of Columbia 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.
Requirements vary by license type, but most District of Columbia auto dealers need to complete a short application and purchase the bond amount required by the state before their license can be issued or renewed.
Often, yes. Many states have separate bond requirements for wholesale, retail, broker, or other dealer license types. Choose the bond that matches your District of Columbia 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.
