If you sell 2 or more cars within Utah, then you are required by The Utah Motor Vehicle Enforcement Division to register as a licensed motor vehicle dealer. You must purchase and maintain a $75,000 auto dealer bond as part of that licensing process. This is outlined in the Utah state Code, Chapter 3, Title 41.
Please note this page is for car dealer licensing. If you're trying to register a vehicle with a missing title, a separate Lost Title Bond is required.
Bond Amount: $75,000
Required By: Utah Motor Vehicle Business Regulation
A Utah auto dealer bond is a three-party contract involving the surety company (the surety), the auto dealer (the principal of the bond), and The Utah Motor Vehicle Enforcement Division (the obligee). In this agreement, the surety company guarantees that the auto dealer will adhere to the requirements specified in Utah Code, Chapter 3, Title 41, Section 211, as mandated by the Utah Motor Vehicle Enforcement Division. If the dealer fails to meet these terms—for instance, by not remitting sales taxes to the government or committing title fraud or errors—a claim can be filed against the bond to provide financial compensation to the affected parties.
The surety company conducts a thorough investigation to determine the claim's validity. If it's deemed valid, the surety company will pay out an amount up to the maximum bond coverage. Subsequently, the bond's principal (the dealer) is responsible for reimbursing the surety for all the money disbursed, including any associated attorney fees.
Who Needs a Utah Auto Dealer Bond
Per Utah Code Chapter 3, Title 41, Section 201, any individual involved in the sale of motor vehicles, trailers, or recreational vehicles as a dealer, wholesaler, or distributor must obtain the relevant auto dealer license from The Utah Motor Vehicle Enforcement Division. To secure this license, you must possess a Utah motor vehicle surety bond. The most common bond in this category is the $75,000 motor vehicle dealer bond, available starting at $375 per year.
How Fast Can I Obtain the Utah Motor Vehicle Dealer Surety Bond?
You can obtain your surety bond within as little as 4 business hours from the moment you complete the application and make the necessary payment once we send you the payment link.
Simply start by filling out the form and provide the following information:
Once you've supplied this information, we will leverage it to seek the most affordable quotes from our extensive network of more than 10 insurance partners. If you are satisfied with the quote, we will send you a payment link. Once the payment is made, we will promptly email you the bond.
You have the flexibility to choose the term length for your auto dealer bond. However, all Utah auto dealer bonds share a standard expiration date of June 30th. This specific date aligns with the expiration of all Utah auto dealer licenses. Consequently, a new bond or proof of continuous bond coverage must be submitted to The Utah Motor Vehicle Enforcement Division before June 30th each year. This ensures that your dealership remains compliant and licensed to operate in the state.