Vehicle Possessory Lien Bond
Required for Oregon motor vehicle dealers (used vehicles only) to file mechanic's lien applications with the DMV. Excludes franchised dealers, manufacturers, towing businesses, and national auction companies.
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 Vehicle Possessory Lien Bond is a surety bond required by the Oregon Department of Motor Vehicles (DMV) for certain motor vehicle dealers who need to file mechanic's lien applications. This requirement became effective January 1, 2022, as part of Oregon's enhanced consumer protection measures.
Who Needs This Bond: Motor vehicle dealers who deal exclusively in used vehicles and wish to file mechanic's lien applications with the Oregon DMV. This requirement does not apply to franchised dealerships, manufacturers, towing businesses, or national auction companies, which are exempt from this bonding requirement.
Bond Protection: This bond protects the State of Oregon and consumers from potential financial harm that could result from improper or fraudulent mechanic's lien filings. It ensures that dealers who file lien applications have financial backing to cover any damages that may arise from their lien activities.
Bond Details: The bond amount is set at $20,000 and has a one-year term. The bond is renewable annually, allowing dealers to maintain continuous compliance with Oregon DMV requirements. Dealers must maintain this bond on file with the DMV as long as they intend to file mechanic's lien applications.
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
Oregon Auto Dealer Bond Key Facts
Governed by ORS 822.020 & 822.030.
The basics
What Is an Auto Dealer Bond in Oregon?
An Oregon auto dealer bond is a surety bond you must file with the Oregon DMV to get or renew a vehicle dealer certificate. Most vehicle dealers post a $50,000 bond; dealers who deal only in motorcycles, mopeds, Class I all-terrain vehicles, or snowmobiles post $10,000. Oregon requires it under Oregon Revised Statutes sections 822.020 and 822.030.
Good to know - Required for every Oregon vehicle dealer certificate; the amount is set by what you sell. Most vehicle dealers post a $50,000 bond, and dealers who deal exclusively in motorcycles, mopeds, Class I all-terrain vehicles, or snowmobiles post $10,000. The bond runs for each year the certificate is valid.
The bond is a promise that you will follow Oregon’s vehicle dealer laws — for example, paying the fees and taxes you owe and delivering a clear vehicle title when you sell a vehicle. The bond is executed to the State of Oregon, which is the obligee the bond protects.
If you break those rules and cause someone a financial loss, that person or the state can file a claim against your bond, up to its full amount. A person who is not a retail customer of the vehicle can claim no more than $10,000 against the bond. The bond protects the public, not you: if the surety company pays a claim, you must pay the surety back.
Oregon dealer bonds are continuous. The bond is one continuing obligation that stays in effect for the whole period your certificate is valid — a certificate runs for three years — and for each renewal period, until it is used up by paid claims, unless the surety cancels it. You renew your bond on time to keep your certificate active.
Qualification
What You Need to Qualify for a Oregon 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 Oregon vehicle dealer certificate with the Oregon DMV Business Licensing unit.
- You know your dealer category, because it sets your bond amount: $50,000 for most vehicle dealers, or $10,000 if you deal only in motorcycles, mopeds, Class I all-terrain vehicles, or snowmobiles.
- Your bond is written by a surety company licensed to do business in Oregon, executed to the State of Oregon as the obligee, and kept continuous so it never lapses.
- You have an established business location in Oregon that meets your city or county land-use rules.
- You have completed the eight hours of pre-licensing education from a DMV-approved provider that new dealers must take.
- You have your business details ready — legal name, ownership, and location.
Step by step
How to Get an Auto Dealer Bond in Oregon: Step by Step
Choose your Oregon dealer category
Decide what you will sell, because it sets your bond amount. Most vehicle dealers post a $50,000 bond. If you deal only in motorcycles, mopeds, Class I all-terrain vehicles, or snowmobiles (or any combination of those), your bond is $10,000.
Finish pre-licensing education and set up your location
New dealers must complete eight hours of pre-licensing education from a DMV-approved provider. You also need an established business location in Oregon that meets your city or county land-use (zoning) rules.
Complete your Vehicle Dealer Certificate application
Download and fill out the Application for a Three-Year Vehicle Dealer Certificate packet (735-370). It lists every document and fee DMV needs and tells you where to file.
Application for a Three-Year Vehicle Dealer Certificate (735-370)Get your Oregon vehicle dealer bond
Buy your bond for the amount your dealer category requires and we handle the form. We issue your Oregon vehicle dealer bond on DMV’s official Vehicle Dealer Surety Bond form, executed to the State of Oregon, and send you the signed bond to include in your application packet. There is no bond form for you to download or sign.
File your application, bond, and fees with DMV
Submit your completed 735-370 packet, your issued bond, and your fees to DMV Business Licensing at 1905 Lana Ave NE, Salem, OR 97314, by mail or in person. A complete application takes about 2–3 weeks, and you cannot do business until DMV approves it.
Keep your bond continuous
Your bond must stay on file without a lapse the whole time you are licensed. Renew it before your certificate’s renewal so your coverage never gaps — your vehicle dealer certificate cannot stay active without the bond in place.
Paperwork
Oregon Dealer Bond Forms & Documents
The vehicle dealer application packet you complete and submit to DMV Business Licensing.
View formThe official DMV dealer bond form — we issue this for you and send you the signed bond to file with your application. You do not download or complete it.
View formUse this to correct details on an existing certificate, such as ownership or location changes.
View formYou'll also need
Cost
How Oregon Auto Dealer Bond Pricing Works
You do not pay the full bond amount. Oregon sets the bond by dealer category — $50,000 for most vehicle dealers, or $10,000 for dealers who deal only in motorcycles, mopeds, Class I all-terrain vehicles, or snowmobiles. That figure is the coverage, the most a claim can collect.
You pay a premium, which is a small percentage of your bond amount. Underwriting sets your rate, mostly from your personal credit. The premium is separate from DMV’s certificate and plate fees.
Worked example
If you open a used car lot, your bond is $50,000. You do not pay $50,000 — you pay a premium on it, often a few hundred dollars a year for well-qualified applicants. A dealer who sells only motorcycles or snowmobiles posts a $10,000 bond, so the premium is lower.
Filing
Filing Information
Oregon Department of Transportation, Driver & Motor Vehicle Services (DMV) — Business Regulation / Business Licensing
Filing notes
Oregon names the State of Oregon as the obligee and requires the bond on DMV’s official Vehicle Dealer Surety Bond form. We issue your bond on that form for you — there is no bond form for you to fill out.
The bond must be continuous. It stays in effect for the whole period your certificate is valid and each renewal period, until it is used up by paid claims, unless the surety cancels it with written notice to DMV. Renew it on time so your coverage never lapses.
File your issued bond together with your Application for a Three-Year Vehicle Dealer Certificate (735-370) at DMV Business Licensing, 1905 Lana Ave NE, Salem, OR 97314. In most cases we send you the executed bond to include in your application packet.
FAQ
Oregon Auto Dealer Bond FAQ
Yes. Every Oregon vehicle dealer certificate requires a surety bond (or letter of credit), filed with the Oregon DMV under Oregon Revised Statutes sections 822.020 and 822.030. The amount depends on your dealer category.
It is $50,000 for most vehicle dealers. Dealers who deal exclusively in motorcycles, mopeds, Class I all-terrain vehicles, or snowmobiles (or any combination of those) post a $10,000 bond.
It depends on what you sell. If you sell cars or trucks to the public, you are a full vehicle dealer and need the $50,000 bond. If you deal only in motorcycles, mopeds, Class I all-terrain vehicles, or snowmobiles, you need the $10,000 bond.
It is continuous. The bond stays in effect for the whole period your certificate is valid — an Oregon vehicle dealer certificate runs for three years — and for each renewal period, until it is used up by paid claims, unless the surety cancels it. You renew it on time to keep your certificate active.
We issue your bond on DMV’s official Vehicle Dealer Surety Bond form, executed to the State of Oregon, and send you the signed bond. You include it with your Application for a Three-Year Vehicle Dealer Certificate (735-370) at DMV Business Licensing in Salem. There is no bond form for you to complete.
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.
A complete application takes about 2–3 weeks for DMV to process. You cannot do business as a dealer until DMV approves your certificate, so file early and include everything on the 735-370 checklist.
The Oregon DMV Business Regulation / Business Licensing unit, part of Driver & Motor Vehicle Services at the Oregon Department of Transportation. You can reach Business Licensing at 503-945-5052.
Sources
Last verified 2026-07-02. Requirements change - confirm current details with Oregon Department of Transportation, Driver & Motor Vehicle Services (DMV) — Business Regulation / Business Licensing before you file. This page is informational and not legal advice.
FAQ
Oregon Auto Dealer Bond Questions
The cost of a Oregon 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 Oregon 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 Oregon 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.
