Montana Auto Dealer Bond

To ensure compliance with licensing regulations, auto dealers are required to obtain and uphold a motor vehicle dealer surety bond of either $5,000, $15,000, or $50,000. This bond serves as a financial safeguard and is a prerequisite for obtaining a license. 

According to the Montana Code Annotated Title 61 Chapter 4 Part 1, an auto dealer bond must be filed and maintained to be approved for a professional business license in the state. The bond is required to ensure that dealers engage in ethical business practices, pay required fees and taxes, as well as to agree that they will operate business according to Montana law.

Failing to file a bond can result in the revocation of the auto dealership’s professional business license. All individuals and businesses that sell or deal in motor vehicles need a bond.

Quick Overview

Bond Amounts: 

  • $5,000 for watercraft, snowmobile, and off-highway vehicle dealers
  • $15,000 for motorcycle and quadricycle dealers
  • $50,000 for all other dealer types


  • Ranges from $100 to $250  for one year, the exact price depends on the dealership owner’s credit score and history
Example Montana Auto Dealer Bond
Example Montana Auto Dealer Bond

How much does it cost?

Our rates for the $50,000 Montana auto dealer bond starts at $250 for a 1 year bond. This prices is mostly based on the applicant’s credit score. Generally speaking, a higher credit score will equate to lower prices. In some cases, a dealer’s previous work experience can result in a discount for bond prices in Montana.


Montana Auto Dealer Bond FAQs

Why is the Montana Auto Dealer Bond Required?

The purpose of the bond serves a dual role:

It deters individuals who lack the necessary qualifications from securing a motor vehicle dealer's license. Those with extremely low credit scores or a history of bankruptcy may find it challenging to obtain a bond due to the elevated risk of potential claims.

It mitigates financial losses incurred by car buyers in situations where existing auto dealers engage in fraudulent activities. If a current auto dealer engages in fraudulent practices, such as the sale of vehicles lacking proper titles or tampering with the odometer of the cars they sell, car buyers have the option to file a claim against the auto dealer. In these instances, the bond claim would provide compensation for any financial harms suffered by the car buyer as a result of auto dealers’ malpractice. 

What does a Montana Auto Dealer Bond do?

The Montana auto dealer bond exists to protect car purchasers from auto dealers who violate Montana auto dealer regulations.The affected person may then file a claim with the court for damages and losses. The surety company will then pay claims up to the full bond amount, which then has to be reimbursed by the car dealership to the issuing bond company.

What Information Do I Need to Provide to Get the Bond?

You will need to provide information about your dealership such as:

  • Your dealer license number
  • Dealership name 
  • Address 

If you are the owner, you will also need to provide:

  • Your name 
  • Social security number
  • Clarification on whether your dealership sells only cars or title services as well. 

Dealers are encouraged to dispatch the fully filled bond application, along with the accompanying power of attorney document, to the designated mailing address provided below: 

Motor Vehicle Division
Title and Registration Bureau
1003 Buckskin Drive
Deer Lodge, MT 59722-2375

How Many Years Can I Get the Bond For?

There are two types of bonds when it comes to Montana auto dealer bonds: a general auto dealer bond and a title provider bond. For the general auto dealer bond, …. For the title provider bond… 

Bond terms vary depending on the bond you are getting. In Montana, you have the option to secure your auto dealer bond with a minimum duration of a year. If you are a Title Provider, you can get a bond for up to 3 years. Normally, your title provider license undergoes renewal approximately every two years, making it advisable to choose a two-year bond term. Choosing a multi-year bond often results in a more cost-effective annual premium rate. 

What’s the premium rate for a Montana auto dealer bond?

A premium rate is the dollar amount that you pay for your auto dealer bond every month. 

Premium rates are usually 0.5-9% of the required bond amount, depending on your personal financial background and duration of bond. Generally speaking, the longer the duration and the better your credit score, the cheaper rate you’ll get. 

Why Do I Need to Provide My Social Security Number?

Your social security number is required for a credit check as part of the bonding process. The cost of your bond will depend on your credit history. Your credit being run is what is known as a soft credit score check, so it will not affect your credit score. 

What Happens if my Bond is Denied?

As a surety bond agency, we collaborate with over 10 bonding carriers. Each carrier has differing preferences and pricing structures. While some have higher prerequisites, others are willing to consider applicants with less favorable credit scores. While these carriers are accommodating to lower credit scores, it’s worth noting that their flexibility is generally accompanied with higher premium rates, designed to offset the increased risk associated with lower credit scores. 

How Should I Make the Changes to the Bond?

To make changes on a bond, request a Rider Form. This form allows you to update various aspects of your bond, including the effective date, principal's name, and principal's address. 

To get started with modifying your bond, all you need to do is reach out to us. You can call us at (888) 236-8589, and our team will guide you through the necessary steps. Alternatively, you can drop us an email at, and we'll promptly assist you.

We understand that your business may evolve, and so can your bond. At SuretyNow, we're here to ensure that your bond always aligns with your requirements.

What Happens If I Forget to Renew My Bond? 

If you forget to renew your bond, the Montana DMV will revoke your auto dealer license, since all licensed dealers in Montana must have an auto dealer bond in place. 

In Montana, both license and surety bond renewal deadlines fall on December 31. To avoid getting your license revoked, we recommend that you get a bond beforehand (generally 90 days) and file it with the Montana DMV ahead of the December 31st deadline. When you choose to bond with us, we will reach out to you 90 days before your bond expiration date. This will make you well-prepared for renewal. Once we collect payment for your new bond, we’ll mail you a copy of the bond that you can file to the Montana Department of Justice, Vehicle services bureau. 

If your credit score has improved over the year, and your business has demonstrated growth, there's a good chance that your bond pricing may be lower than in previous years. Nonetheless, make sure you have the proper financials prepared to be able to renew.

Don't hesitate to reach out to us for any bond-related inquiries or assistance with your renewal.