Who needs this bond?

If you want to get or renew an auto dealer license in Wisconsin, you are required to have an auto dealer bond on file with the Wisconsin Department of Transportation.

This bond is required for motor vehicle dealers, as well as wholesale dealers, salvage dealers, auction dealers, recreational vehicle dealers, and moped dealers. The required bond amount depends on the type of dealership license you are applying for.

The bond is part of the state’s licensing process and must be in place before your dealer license can be approved or renewed. It is designed to ensure that dealerships operate according to Wisconsin law and follow the rules that apply to vehicle sales.

How much does this bond cost?

The bond amount is set by the Wisconsin Department of Transportation and varies by license type:

  • $50,000 for motor vehicle dealers
  • $25,000 for salvage dealers, wholesalers, auction dealers, and recreational vehicle dealers
  • $5,000 for moped dealers

You do not pay the full bond amount. Instead, you pay a small percentage of that amount as your annual premium. In most cases, premiums range from 1% to 3% of the required bond amount.

Your exact rate is based on factors such as your personal credit, financial history, industry experience, and licensing background. Applicants with lower credit scores can still qualify, though the rate may be higher.

How do I get this bond?

Getting your Wisconsin auto dealer bond is a simple process:

  • First, complete a short bond application.
  • Next, the bonding company reviews your credit and background information.
  • Then, you receive a quote for your premium.
  • Once payment is made, the bond is issued so you can file it with the Wisconsin Department of Transportation as part of your license application.

The bond is one of several requirements for obtaining your dealer license. You will also need to complete the dealer license application, provide a sales tax permit, meet business location and zoning requirements, install required signage, complete the owner statement, and pay all licensing fees.

Can I get this bond with bad credit?

Yes, it is still possible to obtain a Wisconsin auto dealer bond with less-than-perfect credit.

While applicants with strong credit typically receive the lowest rates, many bonding companies offer options for those with lower credit scores or past financial challenges. Your premium may be higher, but bad credit does not automatically prevent you from qualifying for the bond.

How fast can I get this bond?

In many cases, auto dealer bonds can be approved the same day once your application is submitted and reviewed.

Once payment is made, the bond can typically be issued quickly so you can move forward with your license application.

Are there any local requirements?

The Wisconsin Department of Transportation sets the statewide bonding requirement, but you must also meet local zoning and business location requirements before your dealer license can be approved.

This includes having an established place of business with the required office space, display area, and signage. You should confirm that your location complies with local zoning rules before submitting your license application.

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