Who needs North Dakota Auto Dealer Bonds?

Anyone applying for or renewing a motor vehicle dealer license in North Dakota must obtain this bond. The North Dakota Department of Transportation Motor Vehicle Division requires it as part of the licensing process.

This bond is required before a dealer can legally buy, sell, or offer vehicles for sale in the state. It applies to licensed dealerships operating from an approved business location and is one of several requirements that must be met before a license is issued.

How much do North Dakota Auto Dealer Bonds cost?

North Dakota requires auto dealers to carry a $25,000 bond.

You do not pay $25,000 upfront. Instead, you pay a small percentage of that amount each year. Most dealers pay between 1% and 3% of the bond amount annually. Your exact rate depends on factors such as your personal credit, financial background, industry experience, and licensing history.

Applicants with strong credit typically receive the lowest rates. If you have credit challenges, you can still qualify for a bond, though the rate may be higher.

How do I get a North Dakota Auto Dealer Bond?

Getting your North Dakota auto dealer bond is a simple process:

First, complete a short bond application. The surety company will review your credit and background to determine your rate.

Once approved and payment is made, the bond is issued so you can submit it with your dealer license application.

As part of the overall licensing process, you will also need to:

  • Complete the dealer license application
  • Provide proof of liability insurance
  • Maintain a qualifying commercial lot and enclosed office space
  • Install proper business signage
  • Keep required business records at your licensed location
  • Pay all required application and licensing fees

Your business location will be inspected by the Motor Vehicle Division before your license is issued.

Can I get a North Dakota Auto Dealer Bond with bad credit?

Yes, many applicants with lower credit scores are still able to obtain a North Dakota auto dealer bond.

Your credit profile helps determine your rate, but it does not automatically disqualify you. Surety companies evaluate the full picture, including financial history and experience in the industry. While applicants with credit challenges may pay a higher premium, options are available in most cases.

How fast can I get North Dakota Auto Dealer Bonds?

Most North Dakota auto dealer bonds can be approved quickly once your application is submitted.

In many cases, you can receive a quote the same day. After payment is processed, the bond is issued so you can move forward with your license application without unnecessary delays.

Are there any local requirements?

Yes. In addition to posting the required bond, North Dakota dealers must meet specific state licensing requirements set by the Motor Vehicle Division.

These include maintaining an approved commercial lot with a permanent enclosed building, displaying a business sign visible from the street, carrying liability insurance, keeping business records at the licensed location, and passing a site inspection before the license is granted.

If you’re unsure which bond you need, BOSS Bonds can review your licensing paperwork and help identify the correct bond at no cost.