The Pennsylvania State Board of Vehicle Manufacturers, Dealers, and Salespersons requires motor vehicle dealers within the state to secure a surety bond as part of the licensing process. This State Board serves as the obligee or state authority in this case.
Like other surety bonds, the Pennsylvania Motor Vehicle Dealership License Bond is an agreement between the surety, the obligee, and the principal. The surety bond ensures that the principal (in this case, licensed dealerships) will abide by all state licensing laws and regulations.
In the event that the principal does not abide by their state laws and licensing regulations, resulting in injury to a consumer, and that the injured party files a claim against the principal’s bond, the surety will compensate the injured party(s) up to the bond amount, following an investigation into the claims’ validity. Business practices that may result in a valid claim include failing to report a sale, failing to meet warranty obligations, or engaging in any form of fraudulent practice.
Please note that it is the principal's responsibility to reimburse the surety for claims paid out, plus any additional expenses incurred by the surety during the investigation and resolution of the claim.
Motor vehicle dealers applying for a Pennsylvania dealership license must obtain a Motor Vehicle Dealership License Bond. This bond is required for various motor vehicle license types, including Manufacturer/Dealer, Full/Issuing Agent, Card Agent, Messenger Service, and Salvor licenses.
Please note that the license bond must be renewed at the same time as the Pennsylvania dealership license.
The bond amount for the PA Auto Dealer License Bond is usually $10,000, $20,000, or $30,000, depending on the license type. Here are the bond amounts for the different license types:
Although bond amounts vary, the only cost required to obtain the bond is a small percentage of the bond amount, called a premium. This premium is determined by several factors, such as the applicant’s credit, industry experience, and financial status. Please note that this soft credit inquiry will not harm your credit score.
With optimal credit and industry experience, your rates may be as low as 1% of the bond amount. You can rest assured that EZ Surety Bonds works with a variety of sureties to offer the best quote available to all principals, including those with nonstandard credit.
The Pennsylvania State Board of Vehicle Manufacturers, Dealers, and Salespersons, which operates as a division under the Department of Transportation, is the obligee or the authority that requires this license bond. Their contact information is as follows:
Pennsylvania State Board of Vehicle Manufacturers, Dealers, and Salespersons
P.O. Box 2649
Harrisburg, Pennsylvania 17105-2649
With EZ Surety Bonds, you can apply for a bond quickly, easily, and free of charge. Simply apply via the quick form on our website, and one of our friendly surety experts will get back to you within 24 hours regarding a free quote for your Pennsylvania Motor Vehicle Dealership License Bond. Following the payment and receipt of your bond, you may then file it with the obligee, the Pennsylvania State Board of Vehicle Manufacturers, Dealers, and Salespersons.
Once a dealer sells more than five motor vehicles, a dealership license will be required. Here are the steps to acquiring your Pennsylvania auto dealership license:
Before you can receive your license, an on-site inspection will be conducted. Note that the Pennsylvania dealer license expires every odd-numbered year on May 31 and must be renewed before that date. Therefore, if you obtain your dealer license on June 3, 2023, it will expire on May 31, 2025.
For a detailed step-by-step process to obtaining your PA car dealer license, check our comprehensive guide here.
The PA Motor Vehicle Dealer License Bond has bond amounts varying from $3,000 up to $50,000—depending on the license type. How much you pay, a.k.a. your premium, will be determined by several factors, such as a soft credit check, industry experience, and financial standing.
We work with dozens of surety companies to find you the best quotes regardless of your credit history. Apply today and one of our surety experts will contact you within 24 hours regarding your free quote.
After you purchase the bond, we will mail the original document to you. Most obligees require you to file the original bond with them (usually signed by the principal). However, every obligee has their own unique filing requirements. Always confirm the bond filing requirements with your obligee before doing anything with your bond.
You’ll know if you need a surety bond because some entity will have required you to obtain one. They must also inform you of which specific bond type you’ll need. There are thousands of bonds across the country, all of which vary by state and industry.
Visit EZSuretyBonds.com to browse hundreds of bonds by state, type, or industry.