State of Washington - Vehicle Dealer Bond
Required for motor vehicle dealers selling new or new and used vehicles in Washington State. Protects consumers from fraudulent business practices and ensures compliance with state regulations.
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 State of Washington Vehicle Dealer Bond is a surety bond required for businesses engaged in selling new vehicles or both new and used vehicles in Washington State. This bond serves as a financial guarantee that the dealer will operate in accordance with state laws and regulations governing motor vehicle sales.
Motor vehicle dealers who sell new vehicles or a combination of new and used vehicles must obtain this bond as part of their licensing requirements with the State of Washington. The bond amount varies based on the dealer's business volume and type, with coverage amounts of $5,000 or $30,000 available.
This bond protects consumers and the State of Washington from financial losses that may result from the dealer's failure to comply with applicable laws, fraudulent business practices, or breach of contract. If a dealer violates state regulations or engages in deceptive practices, 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 active dealer licensing. This bond is eligible for instant approval, allowing qualified applicants to receive their bond quickly to meet licensing deadlines.
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
Washington Auto Dealer Bond Key Facts
Governed by RCW 46.70.070.
The basics
What Is an Auto Dealer Bond in Washington?
A Washington auto dealer bond is a surety bond you must file with the Department of Licensing (DOL) before you can get a motor vehicle dealer license. For a motor vehicle (auto) dealer, the bond is $30,000. Washington requires it under RCW 46.70.070, and the amount depends on your license type: $30,000 for a motor vehicle dealer and $5,000 for a miscellaneous vehicle dealer.
Good to know - Required for every Washington vehicle dealer; the amount is set by license type under RCW 46.70.070. A motor vehicle (auto) dealer posts a $30,000 bond, a mobile home, park trailer, and travel trailer dealer posts $30,000, and a miscellaneous vehicle dealer posts $5,000.
The bond is a promise that you will run your dealership honestly and follow Washington motor vehicle laws in chapter 46.70 RCW. The bond runs to the State of Washington, and it must be approved by the attorney general as to form.
If you break those rules and cause someone a financial loss, that person can file a claim against your bond. A retail buyer, a consignor who is not a dealer, or another dealer who did business with a wholesale dealer can recover against the bond and the surety, up to the full bond amount. The bond protects the public, not you: if the surety pays a claim, you must pay the surety back. Successive claims are allowed, but the surety never pays more than the bond amount in total.
Your bond must stay in force the whole time you are licensed, with no lapse. Under RCW 46.70.070, if the surety cancels the bond, your dealer license is automatically canceled — so you keep the bond on file with DOL and renew it to keep your license active.
Qualification
What You Need to Qualify for a Washington 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 Washington vehicle dealer license with the Department of Licensing (DOL), which regulates dealers under chapter 46.70 RCW.
- You know your license type — a motor vehicle (auto) dealer posts a $30,000 bond, while a miscellaneous vehicle dealer posts $5,000 — because it sets your bond amount.
- Your bond is written by a surety company authorized in Washington, runs to the State of Washington, and shows the principal name exactly as it appears on your business owner and business firm name.
- You have an established Washington place of business that is open to the public, with the permanent sign, display space, and office that DOL requires.
- Your business location has passed, or can pass, the required inspection — the Washington State Patrol inspects most counties, and the City of Seattle inspects locations in King County.
- You have a registered Washington business and a Business License Application on file through the Business Licensing Service so DOL can add your vehicle dealer license.
Step by step
How to Get an Auto Dealer Bond in Washington: Step by Step
Choose your Washington dealer license type
Decide which license you need. Your license type sets your bond amount: a motor vehicle (auto) dealer posts a $30,000 bond, while a miscellaneous vehicle dealer — a dealer in motorcycles or vehicles other than motor vehicles, mobile homes, or travel trailers — posts $5,000.
Set up your Washington place of business
Have an established Washington location that is open to the public, with the permanent sign, display area, and office that DOL requires, and make sure it meets local zoning for vehicle sales. DOL requires a real, fixed place of business — a home or vacant lot alone will not qualify.
Complete your dealer license application
File a Business License Application through the Business Licensing Service to add your vehicle dealer license, and use the DOL Dealer Checklist to gather everything the packet requires. You can also request a full Dealer Application Packet from DOL Dealer Services.
Dealer Checklist (DLR-430-546)Get your Washington dealer bond
Buy your bond for the amount your license type requires and we handle the form. We issue your Washington dealer bond on the official DOL bond form (form 430205), which runs to the State of Washington, and in most cases we file it for you. There is no bond form for you to download, complete, or sign.
Pass your business location inspection
Schedule and pass the required inspection of your business location. The Washington State Patrol inspects locations in most counties; if your business is in King County, you schedule the inspection with the City of Seattle instead.
Submit your application and fees
Turn in your completed Business License Application, your issued bond, proof of your place of business, your passed inspection, and your fees through the Business Licensing Service. DOL reviews the packet and issues your vehicle dealer license.
Motor Vehicle and Other Dealer Licensing Requirements (DLR-430-038)Keep your bond and license active
Your Washington dealer bond must stay in force for as long as you are licensed, with no lapse. Renew your bond and license on time — under RCW 46.70.070, if the surety cancels your bond, your dealer license is automatically canceled.
Paperwork
Washington Dealer Bond Forms & Documents
The official DOL dealer bond form. We prepare and issue your bond on this form and, in most cases, file it with DOL for you — you do not download or complete it yourself.
View formDOL’s checklist of the forms and documents to submit with your dealer license application.
View formDOL’s official requirements sheet for the vehicle dealer license.
View formThe application you complete through the Business Licensing Service to add your Washington vehicle dealer license. Request a Dealer Application Packet from DOL Dealer Services for the full set of forms.
You'll also need
Cost
How Washington Auto Dealer Bond Pricing Works
You do not pay the full bond amount. Washington sets the coverage by license type — $30,000 for a motor vehicle (auto) dealer and $5,000 for a miscellaneous vehicle dealer. That figure is the coverage, the most a claim can collect, not your cost.
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 the DOL license and plate fees you pay through the Business Licensing Service.
Worked example
A Washington motor vehicle dealer posts a $30,000 bond. You do not pay $30,000 — you pay a premium on that amount, often a small percentage a year for well-qualified applicants. A miscellaneous vehicle dealer posts a $5,000 bond, so the premium is lower. Start a quote to see your exact rate.
Filing
Filing Information
Washington State Department of Licensing (DOL) — Vehicle Dealer Services
Filing notes
Washington requires the bond to run to the State of Washington and to be filed with DOL on the official Vehicle, Vessel, Vehicle Manufacturer, Registered Tow Truck Operator, or Wrecker Business Bond (form 430205), approved by the attorney general as to form. We issue your bond on that form — there is nothing for you to complete on the bond yourself.
The principal name on the bond must match your business owner name and business firm name exactly, and the surety must be authorized to do business in Washington. A mismatch is a common reason DOL returns a dealer packet.
The bond must stay in force with no lapse. Under RCW 46.70.070, if the surety cancels the bond or its penalty is exhausted, your dealer license is automatically canceled. You file the issued bond with your Business License Application; in most cases we handle filing the bond for you.
FAQ
Washington Auto Dealer Bond FAQ
Yes. Under RCW 46.70.070, you must file a surety bond with the Department of Licensing (DOL) before a vehicle dealer license is issued. For a motor vehicle (auto) dealer the bond is $30,000. It is not legal to operate as a dealer without a current bond on file.
The amount depends on your license type. A motor vehicle (auto) dealer posts a $30,000 bond, a mobile home, park trailer, and travel trailer dealer posts $30,000, and a miscellaneous vehicle dealer posts $5,000.
It depends on what you sell. If you sell cars or trucks to the public, you are a motor vehicle dealer and need the $30,000 bond. A miscellaneous vehicle dealer — one who deals in motorcycles or vehicles other than motor vehicles, mobile homes, or travel trailers — needs a $5,000 bond.
The bond runs to the State of Washington and protects the public. A retail buyer, a consignor who is not a dealer, or another dealer who did business with a wholesale dealer can file a claim and recover against the bond and the surety, up to the full bond amount. The surety never pays more than the bond amount in total.
The bond must stay in force the whole time you are licensed, with no lapse. Under RCW 46.70.070, if the surety cancels the bond, your dealer license is automatically canceled. You can buy a term of 1, 2, or 3 years (subject to approval) and renew it on time to keep your license active.
We issue your bond on the official DOL bond form (form 430205), which runs to the State of Washington, and in most cases we file it for you. The principal name must match your business owner and firm name exactly. There is no bond form for you to download or complete yourself.
The Washington State Department of Licensing (DOL) licenses vehicle dealers under chapter 46.70 RCW. You apply through the Business Licensing Service, and your business location must pass an inspection (Washington State Patrol, or the City of Seattle in King County) before your license is issued. You can reach DOL Dealer Services at 360-664-6466.
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.
Sources
Last verified 2026-07-02. Requirements change - confirm current details with Washington State Department of Licensing (DOL) — Vehicle Dealer Services before you file. This page is informational and not legal advice.
FAQ
Washington Auto Dealer Bond Questions
The cost of a Washington 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 Washington 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 Washington 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.
