Dealer Bonds are Required in Washington

If you sell more than 15 vehicles in one year in the state of Washington, or if any of the vehicles you sell are worth more than $2,000, then you are required to be licensed as an auto dealer by the Washington Department of Licensing. To be licensed, dealers are required to obtain a $30,000 bond. We’re very familiar with the process and have helped hundreds of dealers in Washington get bonded. Get started with our three minute form process to obtain an instant quote.

Example car dealership

How much is it?

Our prices for a Washington Motor Vehicle Dealer bond starts at $230 for a 1 year bond. The price is based on the applicant’s credit score. Generally speaking, the higher the credit score, the better the price. We also take into account the dealer’s work experience. Dealers who have been selling cars for longer may receive discounts on their bonds.


Washington Auto Dealer Bond FAQ

Are there other types of dealer bonds that I should be aware of in Washington?

For used and new car dealers, the Motor Vehicle Dealer bond listed above is sufficient.

There are a few other bonds for specialized vehicle dealers and manufacturers. They are listed below:

  • Mobile Home, Park Trailer and Travel Trailer Dealers Bond: A $30,000 bond is required for trailer dealers. Our starting price for this type of bond is $240
  • Mobile Home Manufacturer Bond: A $40,000 bond is required for manufacturers of mobile homes. Our starting price for this type of bond is $400
  • Travel Trailer (RV) Manufacturer: A $20,000 bond is required for RV manufacturers. The difference between RV and mobile homes is that RVs are intended for short term occupancy, whereas mobile homes are meant for long term living. Our starting price for a RV manufacturer bond is $200
  • Motor Vehicle Wrecker: A $1,000 bond is required for motor vehicle wreckers/dismantlers. Our starting price for this bond is $100 for 1 year
  • Vessel, misc vehicle dealers: A $5,000 bond is required for dealers who sell any vehicles other than cars, mobile homes or RVs. A bond is not required for this category if 4 or less vehicles are sold in a given year. Our starting price for this bond is $100 for 1 year
  • Registered Tow Truck Operator: A $5,000 bond is required for tow truck operators in Washington. Our starting price for this bondi s $100 for a 1 year bond.

Is a credit check needed for this bond?

Insurance companies will conduct a "soft credit check" to evaluate eligibility and pricing for Washington auto dealer bonds. This type of credit check won't negatively impact the applicant's credit score and is solely used to determine bond pricing and eligibility.

Can I get a Washington Motor Vehicle bond with poor credit?

If your credit score is below 650, it may be classified as "poor" credit. Fortunately, we have partnerships with insurance companies that specialize in providing coverage to this market segment. Don't hesitate to contact us if you have less than ideal credit. We'll help you obtain a Washington auto dealer bond by searching on your behalf. Our team has helped numerous individuals with imperfect credit secure the bonds they need.

Is there another name for this bond?

Yes. This is officially known as a “Motor Vehicle Dealer Bond” in the state of Washington, but amongst auto dealers this is also known as an “auto dealer bond”. Both are used interchangeably.

How long does it take to get bonded?

In most cases, we can get you bonded on the same day. Once we receive a quote from our insurance partners, your price is locked in and the process is instantaneous. We work tirelessly, including weekends, to expedite your bonding process. Our phone lines are open every day from 9:30 am to 9:30 pm CST, and if we miss your call, we'll try our best to return it within 30 minutes.

How can I avoid claims against my bond?

Adhering to the guidelines outlined in the Washington Department of Licensing dealer code is essential to avoid potential claims against your bond. This includes paying the appropriate fees and taxes related to vehicle sales and providing valid titles to your customers. By submitting your bond, you confirm that you'll fulfill all legal requirements associated with operating an auto dealer business, such as providing genuine vehicles and complying with all legal obligations.