You Need an Auto Dealer Bond in Tennessee

Anyone who sells more than 5 motor vehicles in 1 year is required to be licensed as an auto dealer in Tennessee. The bond is required by the Tennessee Motor Vehicle Commission and as outlined in Tennessee Code 55-17, all licensed auto dealers in Tennessee are required to maintain a $50,000 bond to be licensed. We've helped hundreds of dealers get licensed and bonded in Tennessee. Get started below to get a quote. Our process takes 3 minutes.

Example car dealership

How much does it cost?

Our starting price for the $50,000 Tennessee Motor Vehicle Dealer bond is $150 for a two year term. ‍ The price of a Tennessee auto dealer bond is largely based on an applicant’s credit score. In general, the better the credit score, the lower the price


Tennessee Auto Dealer Bond FAQs

Are there other types of auto dealer bonds that I need in Tennessee?

Nope. The only bond you need in the state of Tennessee to sell cars is the $50,000 Motor Vehicle Dealer Bond we’ve listed above. If you sell less than 5 cars in a given year, you don’t even need to be licensed and bonded.

Is there a credit check required for this bond?

Yes, insurance companies will conduct a "soft credit check" on the applicant to determine eligibility and pricing for Tennessee auto dealer bonds. It is important to note that this type of credit check will not have any negative impact on the individual's credit score.

What if I have bad credit?

A credit score under 650 is sometimes considered "poor" credit. We have established partnerships with various insurance companies that specialize in providing coverage to this market segment. If your credit score is less than ideal, please don't hesitate to contact us. We’ll do our best to get you bonded by shopping around on your behalf. We’ve helped many individuals with less than perfect credit get bonded.

How to prove that I’m bonded?

Once your dealer bond application is approved, we will send you a PDF copy of the bond via email as evidence that you are bonded.

How is the price determined?

The cost of a dealer bond in Tennessee depends on various factors, including the applicant's credit score, experience, and the insurance company providing the bond. The applicant's credit score is usually the most important factor, followed by the insurance company. Each insurance company has different methods of underwriting, so they give different prices. We partner with over 10 insurance companies to offer our clients competitive rates.

How fast can I get bonded?

Generally the same day. Once we secure a quote for you from our insurance partners, it’s pretty much instant from that point on. We work around the clock (including weekends) to get you bonded. Our phone lines are always open (9:30am - 9:30pm CST), and we generally try to return calls within half an hour if we miss your call.

What can dealers do to avoid claims against the Tennessee auto dealer bond?

To prevent any claims from being made against your bond, it is essential to run your business in accordance with the guidelines set out in the Tennessee Code. By submitting your bond, you acknowledge that you will provide legitimate vehicles and comply with the legal requirements of running an auto dealer business.