Used Motor Vehicle Title Defect Surety Bond
Required for used motor vehicle dealers in Ohio to protect against title defects and ensure proper vehicle ownership transfers to consumers.
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About This Bond
The Used Motor Vehicle Title Defect Surety Bond is a financial guarantee required by the State of Ohio for used motor vehicle dealers. This bond ensures that dealers comply with state regulations regarding proper title transfers and protects consumers from financial losses due to title defects.
Used motor vehicle dealers operating in Ohio must obtain this bond as part of their licensing and regulatory compliance requirements. The bond specifically applies to businesses that deal exclusively in used vehicles and are involved in the transfer of vehicle titles to purchasers.
This surety bond protects the State of Ohio and consumers who purchase used vehicles from bonded dealers. If a dealer fails to provide clear title or causes financial harm due to title defects, affected parties can file claims against the bond for compensation up to the full bond amount.
The bond is issued for a coverage amount of $75,000 and has a term length of one year. The bond is renewable annually, allowing dealers to maintain continuous coverage as required by state regulations. Premium rates are determined based on the applicant's creditworthiness, with preferred rates available for applicants with credit scores above 675.
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At a glance
Ohio Auto Dealer Bond Key Facts
Governed by Ohio Rev. Code § 4517.12; Ohio Admin. Code 4501:1-3-11.
The basics
What Is an Auto Dealer Bond in Ohio?
An Ohio auto dealer bond is a $75,000 surety bond that used motor vehicle dealers must post with the Ohio Attorney General’s office to get and keep a dealer license. A surety bond is a promise, backed by a surety company, that you will follow Ohio’s dealer laws; if you break them and a customer loses money on a bad title, the bond can pay that customer back. Ohio ties the bond to its Title Defect Recision Fund, so the state uses your official bond form to replenish money paid to buyers you harmed.
Good to know - Required for used motor vehicle dealers: each used-dealer application received on or after January 27, 2018 must post a $75,000 surety bond with the Ohio Attorney General’s office. No bond is required if you (or an owner, officer, partner, or member) currently hold or held a new motor vehicle, adaptive mobility, used motor vehicle, or leasing dealer license in good standing within the prior year. New motor vehicle dealers are generally exempt, except a new dealer selling only remanufactured vehicles, which posts a $100,000 bond, surety, or certificate of deposit with the registrar.
The bond is a three-way agreement. You (the dealer) are the “principal,” the state of Ohio — through the Attorney General — is the “obligee” that holds the bond, and the surety company backs it. It protects your customers, not you or your business. If the surety pays a claim, you must pay the surety back.
Ohio sets the amount by law. Under Ohio Rev. Code § 4517.12 and Ohio Admin. Code 4501:1-3-11, a used motor vehicle dealer application received on or after January 27, 2018 must post a bond of at least $75,000. The bond also helps satisfy the state’s $75,000 net-worth requirement for used dealers.
Not every dealer needs the bond. You can be exempt if you, or an owner, officer, partner, or member of your business, currently hold or held a new motor vehicle, adaptive mobility, used motor vehicle, or leasing dealer license in good standing within the past year. New motor vehicle (franchised) dealers are generally exempt too — the main exception is a new dealer that sells only remanufactured vehicles, which posts a $100,000 bond, surety, or certificate of deposit with the registrar.
A separate, smaller $25,000 bond can come up later: under § 4505.181, once the Attorney General pays one of your customers from the Title Defect Recision Fund, you must post a $25,000 bond to replenish the fund. That is a different situation from the $75,000 bond you post to get your license.
Qualification
What You Need to Qualify for a Ohio Auto Dealer Bond
Approval depends on your dealer license type, required coverage amount, and underwriting factors such as credit.
- You know you are applying for a used motor vehicle dealer license — that is the Ohio license that requires the surety bond (a surety bond is a three-way promise, backed by a surety company, that you will follow Ohio’s dealer laws).
- You know your bond amount is $75,000, posted with the Ohio Attorney General’s office in favor of the state. We issue the bond for you — you do not fill it out.
- You have checked the exemption: if you, or an owner, officer, partner, or member of your business, currently hold or held a new motor vehicle, adaptive mobility, used motor vehicle, or leasing dealer license in good standing within the past year, you may not need the bond.
- You have registered your business with the Ohio Secretary of State, and the business name matches your BMV records and your bond exactly.
- You can show a net worth of at least $75,000 (assets minus liabilities) and keep it the whole time you hold the license.
- You have an established place of business that meets BMV rules — including a display lot of at least 3,500 square feet (not counting driveways or office) with a hard, well-kept surface — and local zoning approval for a dealership.
- You have completed the dealer training course Ohio requires for used motor vehicle dealer applicants.
- You have your owner/officer identification and any required criminal-history (background) records ready to submit.
Step by step
How to Get an Auto Dealer Bond in Ohio: Step by Step
Confirm you need a used dealer license
The $75,000 bond applies to used motor vehicle dealers. Check the exemption first: if you, or an owner, officer, partner, or member, hold or held a new motor vehicle, adaptive mobility, used motor vehicle, or leasing dealer license in good standing within the past year, you may not need the bond.
Set up your business and place of business
Register your business with the Ohio Secretary of State, then set up an established place of business that meets BMV rules — including a display lot of at least 3,500 square feet (not counting driveways or office) with a hard, well-kept surface — and get local zoning approval for a dealership.
Complete the required dealer training
Ohio requires used motor vehicle dealer applicants to complete a dealer training course. Finish the course and keep your certificate of completion for your application packet.
Buy your surety bond
Purchase your $75,000 Ohio dealer bond. Market Canopy issues the bond on the state’s official Motor Vehicle Title Defect Surety Bond form, made out to your exact business name, and posts it with the Ohio Attorney General for you — you do not download, complete, or sign the bond form yourself.
Complete and submit your BMV application
Fill out the Application for Used Motor Vehicle, Motorcycle, or All-Purpose Vehicle Dealer License (BMV 4443), attach your net-worth statement, proof of your place of business, training certificate, identification, and required background records, and include a copy of your issued bond. Mail the packet to the BMV Dealer Licensing Section.
Application for Used Motor Vehicle, Motorcycle, or All-Purpose Vehicle Dealer License (BMV 4443)Keep your bond and license current
Ohio dealer licenses run on a two-year cycle. Keep your bond in effect the entire time you hold the license — including at every renewal — because Ohio Admin. Code 4501:1-3-11 does not allow a lapse. Notify the BMV and your surety within 15 days of any change to your bond information.
Paperwork
Ohio Dealer Bond Forms & Documents
The main used-dealer license application you complete and mail to the BMV Dealer Licensing Section.
View formThe state’s official $75,000 dealer bond form. Market Canopy issues this bond for you and posts it with the Ohio Attorney General — you do not fill it out; a copy accompanies your license application.
View formYou'll also need
Cost
How Ohio Auto Dealer Bond Pricing Works
You do not pay the full $75,000. Ohio sets that as the bond amount — the coverage — not your cost. What you actually pay is the premium, a small percentage of the $75,000.
Underwriting sets your premium, mostly from your personal credit and business history. Well-qualified dealers pay the lowest rates. Use the quote flow on this page for your exact price. The state license fee and other BMV charges are separate from the bond premium.
Worked example
For a used motor vehicle dealer, the bond amount is $75,000 — that is the coverage set by law, not your cost. You pay only a premium, a small percentage of the $75,000, based on your credit and history.
Filing
Filing Information
Ohio Bureau of Motor Vehicles (BMV) — Dealer Licensing Section (bond posted with the Ohio Attorney General, Title Defect Recision Fund)
Filing notes
Market Canopy issues your Ohio dealer bond on the state’s official Motor Vehicle Title Defect Surety Bond form for the full $75,000, made out to your exact business name as it appears with the BMV and the Ohio Secretary of State. You do not fill out or sign the bond form yourself — we prepare it and, in most cases, post it with the Ohio Attorney General’s office for you.
The bond is posted with the Ohio Attorney General (Consumer Protection Section — Title Defect Recision Fund) in favor of the state, and a copy of the bond must accompany your application before the BMV issues your license. Mail your completed BMV 4443 application and supporting documents to the BMV Dealer Licensing Section, P.O. Box 16521, Columbus, OH 43216-6521; email DealersSupport@dps.ohio.gov with questions.
Ohio Admin. Code 4501:1-3-11 requires the bond to stay in effect the entire time you hold the license, so keep it current at every renewal to avoid a lapse. Your surety must give at least 30 days’ written notice before it can cancel the bond, and you must notify the BMV and your surety company within 15 days of any change to the information on your bond application.
FAQ
Ohio Auto Dealer Bond FAQ
Yes, for used motor vehicle dealers. Under Ohio Rev. Code § 4517.12 and Ohio Admin. Code 4501:1-3-11, a used-dealer application filed on or after January 27, 2018 must post a $75,000 surety bond with the Ohio Attorney General’s office. New motor vehicle (franchised) dealers are generally exempt.
The bond amount is $75,000 for a used motor vehicle dealer. That is the coverage set by law, not your cost — you pay only a premium, a small percentage of the $75,000, based on your credit and business history.
You may be exempt if you, or an owner, officer, partner, or member of your business, currently hold or held a new motor vehicle, adaptive mobility, used motor vehicle, or leasing dealer license in good standing within the past year. New motor vehicle dealers are generally exempt, unless the dealer sells only remanufactured vehicles.
Usually not. A new motor vehicle (franchised) dealer generally does not post this bond. The main exception is a new dealer engaged exclusively in selling remanufactured vehicles, which must post a $100,000 bond, surety, or certificate of deposit with the registrar under § 4517.12.
With the Ohio Attorney General’s office (Consumer Protection Section — Title Defect Recision Fund), in favor of the state. A copy of the bond must also accompany your BMV license application. Market Canopy issues the bond and posts it for you.
No. Market Canopy issues your bond on the state’s official Motor Vehicle Title Defect Surety Bond form, made out to your exact business name, and posts it with the Ohio Attorney General. You simply include a copy with your license application.
The entire time you hold your license. Ohio Admin. Code 4501:1-3-11 requires the bond to be maintained without a lapse, and Ohio dealer licenses renew on a two-year cycle, so keep the bond current at every renewal. Your surety must give at least 30 days’ written notice before canceling.
The $75,000 bond is the licensing bond every new used-dealer applicant posts up front. The $25,000 bond is a separate replenishment bond required only after the Attorney General pays one of your customers from the Title Defect Recision Fund under § 4505.181.
Sources
Last verified 2026-07-01. Requirements change - confirm current details with Ohio Bureau of Motor Vehicles (BMV) — Dealer Licensing Section (bond posted with the Ohio Attorney General, Title Defect Recision Fund) before you file. This page is informational and not legal advice.
FAQ
Ohio Auto Dealer Bond Questions
The cost of a Ohio 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 Ohio 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 Ohio 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.
