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Alabama Motor Vehicle Dealer Bond

An Auto Dealer bond is required by the Alabama Department of Revenue to be carried by all motor vehicle dealers within the state.


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Why work with Bonding Solutions? Simple! We are different!

We are a surety only agency that thrives on creating an unbeatable client experience! Our industry leading bond volume allows us to create programs that can be tailored to each individual client, getting them their bond faster at the cheapest cost! Below are a few reasons our clients love to work with us:

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What is an Alabama Motor Vehicle Dealer Bond?

Motor Vehicle Dealers throughout the United States are required to obtain surety bonds in the state they are licensed. The state of Alabama Motor Vehicle Division makes it mandatory that all auto dealers operating in Alabama obtain a surety bond. A dealer that has a bond assures the public that all laws and regulations are followed by the licensed dealer.

According to the State Code of Alabama, Section 40-12-391 auto dealers are required to obtain and post a surety bond with the state. Get started here.



Bonding Solutions | Alabama Motor Vehicle Dealer Bond
Bonding Solutions | Alabama Motor Vehicle Dealer Bond
Bonding Solutions | Alabama Motor Vehicle Dealer Bond

How much will my Alabama Motor Vehicle Dealer Bond cost?

New and used auto dealers are required to post a $25,000 bond. Bond pricing ranges from 0.5% to 30% depending on the applicant’s credit and industry experience.

Don’t have the best credit? Not a problem. We have developed programs that allow clients with credit issues to obtain competitive pricing.

Bonding Solutions offers a variety of different programs that can guide business owners to obtain a surety bond at the low rate you deserve. Our programs allow all of our clients and agents to get their bond at industry-low prices. Call us now to get started.

Why is this Alabama Auto Dealer Bond required?

The state of Alabama requires all licensed motor vehicle dealers to obtain a surety bond. All dealers must post the bond to operate legally.

Specifically, the bond assures the public that the licensed dealer with operating according to Sections 40-12-390 through 10-12-400 of the Code of Alabama 1975. Motor Vehicle Dealer bonds in the state of Alabama are continuous until canceled, cancellation is effective 60 days after filing.

How do I get a Motor Vehicle Dealer Bond?

Bonding Solutions makes the bond process simple. Just start by filling out our two-minute online application or call us.

Once we receive all the correct application information, we will send over pricing and terms. After accepting terms, you will pay for the bond, and then we will email / ship you the bond that same day!

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Additional Resources

The Alabama Legislature (The Code of Alabama 1975)

Alabama Department of Revenue Motor Vehicle Division (ARDMV)

Alabama Department of Revenu Motor Vehicle Forms 

Motor Vehicle Dealer Bond FAQs



Surety Bond List

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