California Auto Dealer Bond:
DMV Requirements, Cost & Same-Day Process

If you hold or are applying for a California auto dealer license, the DMV requires you to carry a $50,000 surety bond. No bond means no license — and operating without one risks fines, license revocation, and personal liability.

Who needs a California auto dealer bond

The California DMV requires a $50,000 surety bond for every licensed dealer type:

• New car dealers — franchise dealerships
• Used car dealers — independent lots
• Motorcycle dealers
• Dealer-brokers
• Wholesale dealers
• Fleet/lease dealers

The bond protects consumers and the state if you commit fraud, misrepresentation, fail to transfer title properly, or violate California Vehicle Code regulations.

What the California auto dealer bond costs

Your premium is a percentage of the $50,000 bond amount, determined primarily by your credit score:

• Excellent credit (720+): $200–$350/year (0.4–0.7% rate)
• Good credit (680–719): $350–$600/year
• Fair credit (620–679): $600–$1,000/year
• Poor credit (below 620): $1,000–$2,500/year

How credit score affects your auto dealer bond rate

Credit score is the primary underwriting factor. A dealer with a 750 score might pay $250/year while one with a 580 score pays $1,500/year for the exact same bond. If you have credit challenges, specialty surety markets can still get you bonded — at a higher rate. We work with multiple sureties to find your best option.

How to get your California auto dealer bond same day

Getting your DMV dealer bond is straightforward:

1. Apply online through our Propeller bond portal — search "auto dealer"
2. Provide basic information: name, address, license number or application status
3. Pay your premium
4. Receive your bond certificate by email — typically same day
5. Submit to the DMV with your dealer license application or renewal