Illinois 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
Illinois Auto Dealer Bond Key Facts
Governed by 625 ILCS 5/5-101 (new); 625 ILCS 5/5-102 (used).
The basics
What Is an Auto Dealer Bond in Illinois?
Yes — Illinois requires an auto dealer bond. To get or keep an Illinois motor vehicle dealer license, you must file a $50,000 surety bond (or a $50,000 certificate of deposit) for each dealership location with the Secretary of State. Illinois calls it the "Designated Agent Bond for Illinois Vehicle Dealers" (form RT DS 47), and it applies to new dealers, used dealers, and new-and-used dealers alike.
Good to know - Required for every Illinois motor vehicle dealer. The amount is $50,000 for each licensed location and is the same whether you are a new, used, or new-and-used dealer. You may file a $50,000 certificate of deposit instead of a surety bond.
The bond runs to the People of the State of Illinois. It guarantees that you correctly pass along (transmit) all of the title and registration fees and taxes you collect as a dealer. If you fail to, the state or a harmed party can file a claim against your bond for up to $50,000.
The bond protects the public and the state — not you. If a claim is paid, you must repay the surety company. The bond is required on top of your $1,000 license fee, and it must stay active the entire time you hold your dealer license.
Qualification
What You Need to Qualify for a Illinois 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, an Illinois new, used, or new-and-used motor vehicle dealer license with the Secretary of State.
- You will post a $50,000 bond — or a $50,000 certificate of deposit — for each location where you will sell vehicles.
- Your bond is written by a surety company authorized (admitted) to do business in Illinois.
- You have an established place of business that meets state rules — a dealership location, not a private residence.
- If this is your first used vehicle dealer license, you have completed the Secretary of State’s 8-hour pre-licensing dealer training.
- You can keep coverage continuous and renew each year before your license and bond expire on December 31.
Step by step
How to Get an Auto Dealer Bond in Illinois: Step by Step
Choose your dealer license type
Decide whether you will be licensed to sell new, used, or both new and used vehicles. The bond is $50,000 for each location no matter which type you choose, so the amount does not change with your dealer type.
Complete dealer pre-licensing training
If this is your first Illinois used vehicle dealer license, complete the Secretary of State’s 8-hour pre-licensing dealer training before your license can be issued. The class covers licensing rules, taxes, and consumer protection laws.
Buy your $50,000 dealer bond
Buy your bond and we handle the paperwork. We issue your $50,000 Designated Agent Bond on the official Illinois form (RT DS 47) and provide it for filing with your application — there is no bond form for you to download, complete, or sign. If you prefer, Illinois also lets you post a $50,000 certificate of deposit instead.
Complete your Dealer License Application
Fill out the Dealer License Application (VSD 324) and gather your supporting documents, including a certificate of insurance and proof of an established place of business that is not a private residence. The Instructions for Dealer License (VSD 659) explain every item.
Dealer License Application (VSD 324)File your application and fee
Submit your completed application, the $1,000 license fee, your bond, and your supporting documents to the Dealer Licensing Section. The Secretary of State then investigates your application and inspects your place of business before issuing the license.
Instructions for Dealer License (VSD 659)Renew before December 31
Illinois dealer licenses and bonds run on a calendar year and expire no sooner than December 31. Renew on time each year so your coverage stays continuous and your license does not lapse.
Dealer License Renewal Application Instructions (RT DS 29)Paperwork
Illinois Dealer Bond Forms & Documents
The main application to sell new and/or used motor vehicles in Illinois.
View formOfficial instructions, document checklist, fees, and mailing address.
View formThe official $50,000 dealer bond form — we issue and provide this for you; you do not fill it out yourself.
View formInstructions for renewing your dealer license each year.
View formYou'll also need
Cost
How Illinois Auto Dealer Bond Pricing Works
You do not pay the full $50,000. That figure is the coverage — the most a claim can collect. You pay a premium, which is a small percentage of the bond 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 the $1,000 Secretary of State license fee.
Worked example
Illinois requires a $50,000 dealer bond, but you do not pay $50,000 — you pay a premium, often a small percentage of the bond amount for well-qualified applicants. Your exact rate depends on underwriting, mainly your credit. Start a quote to see your price.
Filing
Filing Information
Illinois Secretary of State — Vehicle Services Department, Dealer Licensing Section
Filing notes
Your $50,000 Designated Agent Bond (form RT DS 47) must be on file with the Dealer Licensing Section as part of your dealer license application — the Secretary of State cannot issue your license without it.
The bond names the People of the State of Illinois as obligee, must be written by a surety authorized in Illinois, and runs for the license term — it expires no sooner than December 31 of the year the license is issued or renewed.
We issue your bond on the official Illinois form and provide it for filing with your application package. Keep coverage continuous and renew each year so your dealer license does not lapse.
FAQ
Illinois Auto Dealer Bond FAQ
Yes. Every Illinois motor vehicle dealer must file a $50,000 surety bond (or a $50,000 certificate of deposit) for each location to get or keep a dealer license (625 ILCS 5/5-101 for new dealers; 625 ILCS 5/5-102 for used dealers).
It is $50,000 for each licensed dealership location. The amount is the same whether you are a new, used, or new-and-used dealer.
The "Designated Agent Bond for Illinois Vehicle Dealers" (form RT DS 47). We issue this bond for you and provide it for filing — there is no bond form for you to complete.
You pay a premium, not the full $50,000. The premium is a small percentage of the bond amount, based mainly on your credit. Start a quote to see your rate.
Yes. Illinois lets you file a $50,000 certificate of deposit in place of the surety bond. Most dealers choose the bond because it costs only a small premium instead of tying up $50,000.
Illinois dealer licenses and bonds run on a calendar year and expire no sooner than December 31. Renew each year before then to keep coverage continuous so your license does not lapse.
Yes. The $50,000 bond must be on file with the Dealer Licensing Section as part of your application before the Secretary of State issues your dealer license.
The Illinois Secretary of State, Vehicle Services Department, Dealer Licensing Section, in Springfield. You can reach them at (217) 782-7817.
Sources
Last verified 2026-06-30. Requirements change - confirm current details with Illinois Secretary of State — Vehicle Services Department, Dealer Licensing Section before you file. This page is informational and not legal advice.
FAQ
Illinois Auto Dealer Bond Questions
The cost of a Illinois 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 Illinois 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 Illinois 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.
