Pennsylvania 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
Pennsylvania Auto Dealer Bond Key Facts
Governed by 75 Pa.C.S. § 1335 & Board of Vehicles Act (63 P.S. § 818.1 et seq.).
The basics
What Is an Auto Dealer Bond in Pennsylvania?
A Pennsylvania auto dealer bond is a $20,000 surety bond that new and used vehicle dealers — and manufacturers — must post, in the name of the Commonwealth, before PennDOT will issue the dealer registration plates you need to run a dealership (75 Pa.C.S. § 1335). It is a promise, backed by a surety company, that you will follow Pennsylvania’s vehicle laws and pay any fees, sales tax, or penalties you owe the state; if you do not, the bond can cover that loss up to $20,000.
Good to know - A new or used vehicle dealer (and a manufacturer) must post a $20,000 surety bond, in the name of the Commonwealth, before PennDOT will issue the dealer registration plates you need to operate (75 Pa.C.S. § 1335). The amount changes for other PennDOT business-partner types that use the same MV-375 bond form — full agent $30,000, card agent $3,000, messenger service $50,000 (plus $50,000 per branch), and salvor $10,000 — and a mobile home dealer requesting a Dealer Identification Number only is exempt.
Two state agencies are involved. The State Board of Vehicle Manufacturers, Dealers and Salespersons — part of the Department of State — issues your dealer license through the PALS online system. PennDOT’s Bureau of Motor Vehicles then registers your dealership, assigns a Dealer Identification Number (DIN), and issues your dealer plates once your $20,000 bond is on file. You get the Board license first, then register with PennDOT.
The bond is a three-way agreement. You (the dealer) are the “principal,” the Commonwealth of Pennsylvania is the “obligee” it protects, and a surety company backs it. It is not insurance for your business — it protects the state and the public. If the surety pays a claim because you broke the rules, you must pay the surety back.
The $20,000 amount is for new and used vehicle dealers and manufacturers. Other PennDOT business partners post different amounts on the same MV-375 bond form: full agents $30,000, card agents $3,000, messenger services $50,000 (plus $50,000 for each branch), and salvors $10,000.
Qualification
What You Need to Qualify for a Pennsylvania Auto Dealer Bond
Approval depends on your dealer license type, required coverage amount, and underwriting factors such as credit.
- You know you need a dealer license from the State Board of Vehicle Manufacturers, Dealers and Salespersons (part of the Department of State) before you can register with PennDOT for dealer plates.
- You have an established place of business in Pennsylvania with a business office, a phone, a secure area to store documents and plates, a posted schedule of fees, and the required signage.
- You can provide an original SP 4-164 criminal history record from the Pennsylvania State Police for each owner, officer, or employee (an original, not a copy).
- You carry liability insurance that covers at least as many vehicles as the number of dealer registration plates you plan to request.
- You have your $20,000 dealer bond ready — we issue it for you on PennDOT Form MV-375 in the name of the Commonwealth, so you do not fill out a bond form.
Step by step
How to Get an Auto Dealer Bond in Pennsylvania: Step by Step
Get your dealer license from the PA Vehicle Board
Apply to the State Board of Vehicle Manufacturers, Dealers and Salespersons (Department of State) for your new or used vehicle dealer license through the PALS online system at pals.pa.gov. This license comes before any PennDOT registration.
Set up your established place of business
Prepare a Pennsylvania business location with an office, a phone, a secure area to store documents and plates, a posted schedule of fees, and the required signage. Take clear interior and exterior photographs that show the office work area, because PennDOT requires them with your dealer registration application.
Requirements on Becoming a Dealer (PUB 459)Gather your criminal history and insurance
Get an original SP 4-164 criminal history record from the Pennsylvania State Police for each owner, officer, or employee, and a certificate of liability insurance that covers at least as many vehicles as the dealer plates you will request.
Buy your $20,000 dealer bond
Purchase your Pennsylvania dealer bond. Market Canopy issues the $20,000 bond on PennDOT Form MV-375, in the name of the Commonwealth, through a surety company authorized in Pennsylvania — you do not download, complete, or sign a bond form yourself.
Register with PennDOT for your DIN and dealer plates
After you are licensed, mail Form MV-349, "Application for Vehicle Dealer Registration Plates," to the Bureau of Motor Vehicles, Dealer Registration Unit, together with a copy of your Board license, your $20,000 bond, proof of insurance, your business photos, and the required fees. PennDOT then assigns your Dealer Identification Number (DIN) and issues your plates.
Application for Vehicle Dealer Registration Plates (MV-349)Keep your bond and licenses current
Maintain your $20,000 bond without a lapse for as long as you hold Pennsylvania dealer plates, renew your Board dealer license each biennial (two-year) period, and renew your PennDOT dealer registration on time.
Paperwork
Pennsylvania Dealer Bond Forms & Documents
Apply for your Department of State dealer license online through the Pennsylvania Licensing System (PALS). Get this license before registering with PennDOT.
View formPennDOT’s full checklist of requirements for new dealers, including place of business, photos, insurance, and documents.
View formThe PennDOT application you complete and mail to get your Dealer Identification Number (DIN) and dealer plates.
View formPennDOT’s current fee schedule for dealer registration and plates.
View formThe official $20,000 dealer bond form. Market Canopy issues this bond for you in the name of the Commonwealth and files it with PennDOT — you do not fill it out.
View formYou'll also need
Cost
How Pennsylvania Auto Dealer Bond Pricing Works
You do not pay the full bond amount. Pennsylvania sets the dealer bond at $20,000 — that is the coverage the bond provides, not your cost. What you actually pay is the premium, a small percentage of that $20,000.
Your premium is set by underwriting, mostly your personal credit and business history. Use the quote flow on this page for your exact price. Your state license fees, PennDOT registration and plate fees, and the Motor Vehicle Transaction Recovery Fund fee are all separate from the bond premium.
If you are a full agent, card agent, messenger service, or salvor rather than a standard dealer, your required bond amount is different ($30,000, $3,000, $50,000, or $10,000), so your premium is based on that amount instead.
Worked example
Your bond amount is fixed by the state at $20,000 — that is the protection the bond provides, not your cost. You pay only a premium, a small percentage of that $20,000 based on your credit and history, not the full $20,000.
Filing
Filing Information
Pennsylvania Department of Transportation (PennDOT) — Bureau of Motor Vehicles, Dealer Registration Unit
Filing notes
Market Canopy issues your $20,000 Pennsylvania dealer bond on PennDOT Form MV-375, in the name of the Commonwealth of Pennsylvania, through a surety company authorized to do business in the state. You do not fill out or sign a bond form yourself.
Two agencies handle Pennsylvania dealers. The State Board of Vehicle Manufacturers, Dealers and Salespersons (Department of State) issues your dealer license through the PALS online system at pals.pa.gov and can be reached at 1-833-DOS-BPOA. PennDOT’s Bureau of Motor Vehicles then registers your dealership, assigns a Dealer Identification Number (DIN), and issues your dealer plates once your bond is on file.
Get the Board license first, then send your PennDOT dealer registration plate application (Form MV-349) together with a copy of your license, your $20,000 bond, proof of insurance, business photos, and the required fees to the Bureau of Motor Vehicles, Dealer Registration Unit in Harrisburg.
Keep the bond in force for as long as you hold Pennsylvania dealer registration and plates. If the bond is cancelled, PennDOT is notified and your dealer registration is affected — we renew the bond for successive terms so your coverage does not lapse.
FAQ
Pennsylvania Auto Dealer Bond FAQ
Yes. A new or used vehicle dealer (and a manufacturer) must post a $20,000 surety bond, in the name of the Commonwealth, before PennDOT will issue the dealer registration plates needed to operate (75 Pa.C.S. § 1335). The bond is filed on PennDOT Form MV-375.
The bond amount is $20,000 for new and used vehicle dealers and manufacturers. That is the coverage set by the state, not your cost — you pay only a premium, a small percentage of the $20,000, based on your credit and history.
PennDOT’s Bureau of Motor Vehicles requires the bond and holds it on file. It is written in the name of the Commonwealth of Pennsylvania and protects the state and the public — covering unpaid fees, sales tax, and penalties — not your business. If the surety pays a claim, you repay the surety.
No. Market Canopy issues your $20,000 bond on PennDOT Form MV-375, in the name of the Commonwealth, through a surety company authorized in Pennsylvania, and files it for you. You do not download, complete, or sign the bond form.
Yes. First get your dealer license from the State Board of Vehicle Manufacturers, Dealers and Salespersons (Department of State) through pals.pa.gov. Then register with PennDOT’s Bureau of Motor Vehicles for your Dealer Identification Number (DIN) and plates, which is when the $20,000 bond is filed.
Yes. The same MV-375 bond form is used for several PennDOT business partners at different amounts: a full agent posts $30,000, a card agent $3,000, a messenger service $50,000 (plus $50,000 for each branch), and a salvor $10,000. A standard vehicle dealer or manufacturer posts $20,000.
The State Board issues the dealer license for a biennial (two-year) period and charges a renewal fee each cycle. Keep your $20,000 bond in force for as long as you hold dealer registration and plates so your coverage does not lapse between renewals.
Sources
Last verified 2026-07-01. Requirements change - confirm current details with Pennsylvania Department of Transportation (PennDOT) — Bureau of Motor Vehicles, Dealer Registration Unit before you file. This page is informational and not legal advice.
FAQ
Pennsylvania Auto Dealer Bond Questions
The cost of a Pennsylvania 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 Pennsylvania 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 Pennsylvania 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.
