Motor Vehicle Dealer
Required for used vehicle dealers in Montana to obtain and maintain their dealer license. Protects consumers from fraudulent practices and ensures compliance with state regulations.
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About This Bond
The Montana Motor Vehicle Dealer bond is a surety bond required by the State of Montana for businesses engaged in selling used vehicles. This bond ensures that licensed dealers operate in accordance with state laws and regulations governing motor vehicle sales.
Used vehicle dealers in Montana must obtain this bond as part of their licensing requirements. The bond amount varies based on the dealer's business volume and classification, with options of $5,000, $15,000, or $50,000. The $5,000 and $15,000 bonds are classified as Class 2, while the $50,000 bond is classified as Class 3.
This bond protects the State of Montana and consumers from financial losses resulting from the dealer's failure to comply with applicable laws, fraudulent business practices, or violations of licensing requirements. If a dealer fails to fulfill their obligations, affected parties can file claims against the bond for compensation up to the bond amount.
The bond term is one year and must be renewed annually to maintain an active dealer license. Montana motor vehicle dealer bonds are eligible for instant approval, allowing qualified applicants to receive their bond quickly and efficiently.
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1. Share the basics
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At a glance
Montana Auto Dealer Bond Key Facts
Governed by Mont. Code Ann. § 61-4-101.
The basics
What Is an Auto Dealer Bond in Montana?
Yes — Montana requires an auto dealer bond. To get or keep a Montana motor vehicle dealer license, you must file and maintain a continuous surety bond with the Motor Vehicle Division (Mont. Code Ann. § 61-4-101). The amount is set by your license type: $50,000 for most dealers (new, used, wholesale, broker, auto auction, or manufactured home), $15,000 for a motorcycle or quadricycle dealer, and $5,000 for a motorboat, personal watercraft, snowmobile, or off-highway vehicle dealer.
Good to know - Required to hold a Montana motor vehicle dealer license. The amount is set by license type: $50,000 for a new, used, wholesale, broker, auto auction, or manufactured home dealer; $15,000 for a motorcycle or quadricycle dealer; and $5,000 for a motorboat, personal watercraft, snowmobile, or off-highway vehicle dealer. The bond must be continuous, approved by the department, and kept on file the whole time you are licensed.
A surety bond is a promise, backed by a surety company, that you will follow Montana’s dealer laws. If you break them and someone is harmed — for example, a buyer or the state — they can file a claim against your bond up to its full amount.
The bond protects the public and the state, not you. It names the State of Montana. If a claim is paid, you must repay the surety company. Your required amount depends on the kind of dealer license you hold.
Montana requires a continuous bond: it must be approved by the department, stay on file, and remain in force the whole time you are licensed. Your dealer license is renewed each year and expires December 31, so your bond must not lapse.
Qualification
What You Need to Qualify for a Montana 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 Montana motor vehicle dealer license (for example, a new, used, wholesale, broker, or auto auction license) with the Motor Vehicle Division.
- You will post a continuous surety bond in the amount Montana sets for your license type — $50,000 for a new, used, wholesale, broker, auto auction, or manufactured home dealer; $15,000 for a motorcycle or quadricycle dealer; or $5,000 for a motorboat, personal watercraft, snowmobile, or off-highway vehicle dealer.
- Your bond is written by a surety company authorized to do business in Montana and names the State of Montana.
- You have an established place of business that meets Montana’s dealer and local zoning rules.
- You can keep coverage continuous and renew before your license expires on December 31, since a dealer license cannot be issued or renewed without an approved bond on file.
Step by step
How to Get an Auto Dealer Bond in Montana: Step by Step
Confirm your dealer license type and bond amount
Decide which dealer license you need — new, used, wholesale, broker, auto auction, motorcycle, or another type. Then find your bond amount: $50,000 for a new, used, wholesale, broker, auto auction, or manufactured home dealer; $15,000 for a motorcycle or quadricycle dealer; and $5,000 for a motorboat, personal watercraft, snowmobile, or off-highway vehicle dealer.
Review Montana’s dealer requirements
Read the General Information and Requirements for a Motor Vehicle Dealer License (MV22) and the Licensed Dealer Guidelines (MV32). These explain the place-of-business, zoning, and recordkeeping rules you must meet before you apply.
General Information and Requirements for Application for a Motor Vehicle Dealer License (MV22)Buy your Montana dealer bond
Buy your bond and we handle the paperwork. We issue your continuous surety bond on the official Montana dealer bond form in the amount for your license type and provide it, with the power of attorney, for filing with your dealer packet — there is no bond form for you to download, complete, or sign.
Complete your Dealer License Application
Fill out the Dealer License Application (MV25) and gather the documents listed in the MV22 requirements and the Dealer License Instructions. Include your business details, place of business, and the number of dealer plates you need.
Dealer License Application (MV25)File your application, bond, and fees
Submit your completed MV25, your surety bond, your supporting documents, and your fees to the Motor Vehicle Division, Vehicle Services Bureau (by email to dojdealerinfo@mt.gov or fax (406) 444-0116). The Division reviews and verifies your application, then calculates your license and plate fees before issuing the license.
Renew each year and keep your bond continuous
Your Montana dealer license expires December 31 and is renewed each year. Keep your continuous bond in force at all times — a lapse means the Division cannot renew your license. Renew both on time so you can keep selling.
Paperwork
Montana Dealer Bond Forms & Documents
The main application to become a licensed Montana motor vehicle dealer — you complete and submit this.
View formCover sheet listing everything a Montana dealer application must include.
View formThe official Montana dealer bond form (with power of attorney) — we issue and provide this for you; you do not fill it out yourself.
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Cost
How Montana Auto Dealer Bond Pricing Works
You do not pay the full bond amount. That figure — $50,000, $15,000, or $5,000 depending on your license type — 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 Montana’s dealer license and plate fees.
Worked example
A standard Montana new or used dealer bond is $50,000. 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
Montana Department of Justice, Motor Vehicle Division — Vehicle Services Bureau (Dealer Licensing)
Filing notes
Your continuous dealer surety bond must be approved by the Motor Vehicle Division and on file before a dealer license is issued or renewed — a license cannot be issued without it (Mont. Code Ann. § 61-4-101).
The bond names the State of Montana and must stay in force the whole time you are licensed. Montana requires a continuous bond and renews the license each year, so keep coverage active and do not let it lapse.
We issue your bond on the official Montana continuous dealer bond form in the amount for your license type and provide it (with the power of attorney) for filing with your dealer packet — there is no bond form for you to complete or sign.
FAQ
Montana Auto Dealer Bond FAQ
Yes. A Montana motor vehicle dealer must file and maintain a continuous surety bond to hold a dealer license (Mont. Code Ann. § 61-4-101). A license cannot be issued or renewed without an approved bond on file.
It depends on your license type: $50,000 for a new, used, wholesale, broker, auto auction, or manufactured home dealer; $15,000 for a motorcycle or quadricycle dealer; and $5,000 for a motorboat, personal watercraft, snowmobile, or off-highway vehicle dealer.
No. We issue your continuous dealer bond on the official Montana form and provide it, with the power of attorney, for filing with your dealer packet — there is no bond form for you to complete or sign.
You pay a premium, not the full bond amount. The premium is a small percentage of your bond amount, based mainly on your credit. Start a quote to see your rate.
Montana requires a continuous bond — it stays in force until it is cancelled and must remain on file the whole time you are licensed. Your dealer license is renewed each year and expires December 31, so keep coverage active.
Yes. Your approved surety bond must be on file with the Motor Vehicle Division as part of your application before your dealer license is issued.
A dealer license cannot be issued or renewed without an approved bond on file (Mont. Code Ann. § 61-4-101). If your bond lapses, keep coverage continuous and restore it right away so your license is not affected.
The Montana Department of Justice, Motor Vehicle Division — Vehicle Services Bureau (Dealer Licensing). You can reach them at (406) 444-3661 or dojdealerinfo@mt.gov.
Sources
Last verified 2026-07-01. Requirements change - confirm current details with Montana Department of Justice, Motor Vehicle Division — Vehicle Services Bureau (Dealer Licensing) before you file. This page is informational and not legal advice.
FAQ
Montana Auto Dealer Bond Questions
The cost of a Montana 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 Montana 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 Montana 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.
