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M. BURR KEIM AGENCY · License & Permit Surety Bonds · Reviewed November 2026

Used Motor Vehicle Dealer and Designated Agent Bond

A used motor vehicle dealer or designated agent bond is a surety bond required by many states before a used car dealer, wholesale dealer, or designated agent can be licensed. It protects buyers and the state against certain losses caused by a dealer’s failure to comply with motor vehicle dealer laws.

Apply for This Bond Online How to Apply Questions

At a glance

Product
Used Motor Vehicle Dealer and Designated Agent Bond
Category
License & Permit Surety Bonds
Required amount
The state motor vehicle dealer licensing agency sets the amount, often based on the number of dealer plates, the type of dealer license, or a fixed schedule. Designated agent bond amounts may be set separately. Confirm the exact amount and obligee with the state agency.
Online issue
Instant issue with acceptable credit for single risks. Higher amounts, aggregate lines, or specialized state bond forms may require underwriting review.
Term
Used dealer bonds are usually written for a one-year term and renewed with the license. Some states require a bond that runs for the full license period or a continuous term. Follow the state dealer licensing agency’s instructions.

Who needs a used Motor Vehicle Dealer and Designated Agent Bond?

  • Used car dealers, wholesale dealers, and buy-here-pay-here dealers applying for a state dealer license.
  • Designated agents and title service businesses required to file a surety bond with a state motor vehicle agency.
  • Dealer groups adding a new location or renewing a license where a bond must remain in force.

Why is a used Motor Vehicle Dealer and Designated Agent Bond required?

State motor vehicle agencies license used vehicle dealers and designated agents to protect buyers and enforce title and transfer laws. The bond gives buyers and the state a recovery source when a dealer fails to deliver title, misrepresents a vehicle, or fails to meet other covered obligations.

The bond is required as a condition of licensure and does not replace garage liability, property insurance, or the dealer’s own title and compliance procedures.

How much bond do I need?

The state motor vehicle dealer licensing agency sets the amount, often based on the number of dealer plates, the type of dealer license, or a fixed schedule. Designated agent bond amounts may be set separately. Confirm the exact amount and obligee with the state agency.

Instant issue with acceptable credit for single risks. Higher amounts, aggregate lines, or specialized state bond forms may require underwriting review.

Bond amount is not the premium. The required amount is the maximum the surety could pay under the bond. The premium you pay is a separate charge based on the bond amount, the risk, the term, and your credit. The online application shows the premium before you bind coverage.

How much does a used Motor Vehicle Dealer and Designated Agent Bond cost?

Premium depends on the bond amount, the state, the license term, and the applicant’s credit. Used dealer bonds are typically priced as a small percentage of the bond amount. Apply online for the current premium.

How to apply online

  1. Confirm the bond amount and obligee. Use the amount and legal name of the agency, court, client, or government entity that requires the bond. The obligee name must match the requiring party’s records.
  2. Gather the application information. Have the legal business or entity name, address, license or case number, ownership information, and the required bond amount ready.
  3. Start the CNA Surety application. Use the online application link on this page. The link includes the M. BURR KEIM AGENCY app code and agency code, so the application is routed to our agency.
  4. Pay the premium and bind coverage. If the bond is eligible for instant issue, the application will show the premium and let you complete the purchase online. Otherwise, the surety will review the application and contact you if additional information is needed.
  5. File the bond. Provide the issued bond to the agency, court, client, or government entity that requires it, and keep a copy for your records.
Apply for This Bond Online All Bonds

Used Motor Vehicle Dealer and Designated Agent Bond term and renewal

Used dealer bonds are usually written for a one-year term and renewed with the license. Some states require a bond that runs for the full license period or a continuous term. Follow the state dealer licensing agency’s instructions.

Good to know

  • Used vehicle dealer, wholesale dealer, and designated agent licenses can have different bond requirements. Confirm the correct license category before applying.
  • If you operate multiple lots, confirm whether the state requires a separate bond for each location or a single bond covering all locations.

Used Motor Vehicle Dealer and Designated Agent Bond questions

A used motor vehicle dealer or designated agent bond is a surety bond required by many states before a used car dealer, wholesale dealer, or designated agent can be licensed. It protects buyers and the state against certain losses caused by a dealer’s failure to comply with motor vehicle dealer laws.

Used car dealers, wholesale dealers, and buy-here-pay-here dealers applying for a state dealer license. Designated agents and title service businesses required to file a surety bond with a state motor vehicle agency. Dealer groups adding a new location or renewing a license where a bond must remain in force.

Premium depends on the bond amount, the state, the license term, and the applicant’s credit. Used dealer bonds are typically priced as a small percentage of the bond amount. Apply online for the current premium.

The state motor vehicle dealer licensing agency sets the amount, often based on the number of dealer plates, the type of dealer license, or a fixed schedule. Designated agent bond amounts may be set separately. Confirm the exact amount and obligee with the state agency. Instant issue with acceptable credit for single risks. Higher amounts, aggregate lines, or specialized state bond forms may require underwriting review.

Apply online through CNA Surety using the application link on this page. The link includes the M. BURR KEIM AGENCY app code and agency code, so the application is routed to our agency. Complete the application, pay the premium online if the bond is eligible for instant issue, and then file the bond with the agency, court, or client that requires it.

They are often separate license categories. Some states use the same bond form and amount for both, while others set different requirements for new vehicle dealers, used vehicle dealers, and wholesale dealers. Confirm the license category with the state dealer board.

Some states require designated agents or title service businesses to file a surety bond as a condition of their appointment or license. The amount and form are set by the state motor vehicle agency. Check the appointment requirements before applying.

Online application and important note

Bond requirements, forms, amounts, and fees are set by the requiring agency, court, or carrier and can change. This page is general information, not legal advice. Confirm the current requirement with the agency, court, client, or your attorney before applying. M. BURR KEIM AGENCY is an insurance and surety bond agency; the bond or policy is issued by the carrier named on the document.