Tennessee Motor Vehicle Dealer And Other Bonds

Tennessee 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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What you need to know about Tennessee Motor Vehicle Dealer And Other Bonds

State of Tennessee Motor Vehicle Dealer Bond

State of Tennessee Motor Vehicle Dealer Bond

The Tennessee Motor Vehicle Dealer Bond starts at $500 plus shipping costs and fees. Fill out the form to buy your bond instantly!

Bond State
Bond Terms
State of Tennessee
Bond Premium
Bond Amount:
Bond Duration
Bond Term:
24 months

How much does an auto dealer bond cost in Tennessee?

Auto dealer surety bonds (also called motor vehicle dealer bonds) are mandated by the Tennessee Motor Vehicle Commission as part of the licensing requirements for new and used car dealers and wholesalers to conduct business in the state. The Motor Vehicle Commission sets the total bond amount at $50,000.

The surety company determines your premium rate, which is the percentage of the total bond amount you pay as the premium. Premium rates for Tennessee 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 Tennessee auto dealer bond. EZSurety still offers competitive rates to individuals with low credit scores or other financial issues.

Below are the lowest premiums EZ Surety has issued for auto dealer surety bonds in the State of Tennessee.

  • EZ Surety has issued motor vehicle dealer bonds for premiums as low as $875.

How to get your auto dealer license in Tennessee

To obtain your auto dealer license in Tennessee, you must meet the Tennessee Motor Vehicle Commission licensing requirements by completing the following steps:

  • Complete the dealer license application
  • Ensure that the established place of business meets all requirements
  • Install the proper signage
  • Post the $25,000 surety bond
  • Provide proof of liability insurance
  • Obtain a business tax license
  • Provide copies of your financial statements, corporate documentation, and sales tax documents
  • Consent to a financial background check disclosure
  • Pay all licensing fees

Tennessee motor vehicle dealer bonds are valid for a two-year period and must start on the first day of the month.

Dealer license terms are based on the surety bond terms and will have the same expiration date as the bond.

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 EZSuretyBonds.com to browse hundreds of bonds by state, type, or industry.

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