Delaware Auto Dealer Bonds, and More

Delaware auto dealer bonds are required to obtain a license to sell motor vehicles in the state. Learn more about these bonds and find the best rates online.
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Delaware Auto Dealer Bonds, and More

State of Delaware Motor Vehicle Dealer Bond

State of Delaware Motor Vehicle Dealer Bond

The Delaware Motor Vehicle Dealer Bond starts at $250 plus shipping costs and fees. Fill out the form to buy your bond instantly!

Bond State
Bond Terms
State of Delaware
Bond Premium
Bond Amount:
Bond Duration
Bond Term:
12 months

How much does an auto dealer bond cost in Delaware?

Auto dealer surety bonds (also called motor vehicle dealer bonds) are mandated by the Delaware Division of Motor Vehicles (DMV) as part of the licensing requirements for dealerships to conduct business in the state. The DMV sets the total bond amount at $25,000.

The surety company determines your premium rate, which is the percentage of the total bond amount you pay as the premium. Premium rates for Delaware auto dealer bonds typically cost between 1% and 3% of the total bond amount.

During the application process, the surety company evaluates your personal credit, financial statements, industry experience, and licensing history. Applicants with good credit generally receive the lowest rates, however, bad credit will not prevent you from securing a Delaware auto dealer bond. EZSurety still offers competitive rates to individuals with low credit scores or other financial issues.

Why are auto dealer bonds important in Delaware?

Delaware auto dealer bonds provide protection for customers, creditors, and the state government. When a Delaware motor vehicle dealer posts a surety bond, they provide a guarantee to the bond's Obligee (the DMV) that they will conduct business in compliance with the conditions listed in Chapter 30 of the Delaware Code.

If the auto dealer fails to comply with the code, the surety company will pay out financial losses to damaged parties up to the full bond amount. The auto dealer is liable to reimburse the surety for any damages paid under the bond.

How to get your auto dealer license in Delaware

To obtain your auto dealer license in Delaware, you must meet the Delaware DMV licensing requirements by completing the following steps:

  • Complete the application for a dealer or wholesaler license
  • Ensure your place of business and signage comply with DMV regulations
  • Provide proof of garage liability insurance
  • Post the $25,000 surety bond
  • Provide criminal history report for each owner
  • Pay all application and licensing fees

Delaware auto dealer licenses expire on December 31st and must be renewed annually.

How to Know if You Need a Surety 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 to browse hundreds of bonds by state, type, or industry.

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