Who needs this bond?
Anyone applying for a Utah motor vehicle dealer license must obtain an auto dealer bond before the state will issue or renew the license. This includes new and used motor vehicle dealers, large trailer dealers, body shops, small trailer dealers, and crushers.
The bond is required by the Utah Motor Vehicle Enforcement Division as part of the licensing process. It provides financial protection to customers, creditors, and the state by holding dealers accountable for operating according to Utah’s motor vehicle laws. If a dealer violates licensing rules and causes financial harm, a claim can be filed against the bond.
How much does this bond cost?
Utah sets the required bond amount based on your dealership type:
- $75,000 for new or used motor vehicle dealers and large trailer dealers
- $20,000 for body shops
- $10,000 for small trailer dealers and crushers
You do not pay the full bond amount. Instead, you pay a small percentage of that amount as your premium. For most applicants, rates typically range from 1% to 3% of the required bond amount.
Your exact rate is based on factors such as personal credit, financial background, industry experience, and licensing history. Applicants with strong credit usually qualify for lower rates, but many dealers with credit challenges are still approved at competitive pricing.
How do I get this bond?
Getting your Utah auto dealer bond is a straightforward process:
- Complete a short bond application.
- Provide basic business and personal information.
- Receive a quote based on your qualifications.
- Pay your premium.
- Receive your bond for submission with your license application.
The bond is filed as part of your dealer license application with the Utah Motor Vehicle Enforcement Division.
To obtain your dealer license, you will also need to complete the state’s licensing steps, which include submitting the dealer application, providing photos of your business location and required signage, completing pre-licensing training, submitting fingerprint cards for owners, providing proof of a Utah sales tax number, paying licensing fees, and passing an on-site inspection. Dealer licenses must be renewed annually.
Can I get this bond with bad credit?
Yes, many applicants with less-than-perfect credit are still able to obtain a Utah auto dealer bond.
While your credit history is one factor used to determine your rate, it is not the only consideration. Additional factors such as business experience and financial stability are also reviewed. Even if your credit score is low, options are available, and you can typically still qualify for the bond required to move forward with licensing.
How fast can I get this bond?
In most cases, auto dealer bonds can be approved quickly once a completed application is submitted. Many applicants receive a quote the same day, and bonds are typically issued shortly after payment is made.
Are there any local requirements?
Utah auto dealer bonds are regulated at the state level by the Utah Motor Vehicle Enforcement Division. The required bond amount depends on your specific dealer classification.
In addition to the bond, Utah requires dealers to maintain a compliant business location, complete pre-licensing education, submit fingerprints for owners, provide proof of a state sales tax number, and pass a location inspection before a license is issued or renewed.
If you’re unsure which bond you need, BOSS Bonds can review your licensing paperwork and help identify the correct bond at no cost.
