A Georgia Motor Vehicle Dealer Bond is a mandatory financial guarantee required by the Georgia State Board of Registration of Used Motor Vehicle Dealers for any business applying for a used car dealer license. This surety bond - specifically set at a $35,000 bond amount - ensures that the dealership operates in full compliance with state laws, pays all necessary taxes, and transfers vehicle titles correctly. It acts as a consumer protection mechanism: if a dealer commits fraud, misrepresents a vehicle, or fails to pay required fees, the affected customer or the state can file a claim against the bond to recover financial losses. Proof of this active bond is a strict requirement for both the initial license application and the biennial renewal.

The cost of a Georgia Motor Vehicle Dealer Bond is not a flat fee but a premium calculated as a percentage of the mandatory $35,000 bond amount. Typically, dealers with good credit pay between 1% and 3% of the total bond value, which equals $350 to $1,050 per year. However, applicants with lower credit scores may see premiums ranging from 4% to 10% (or higher) to offset the risk. The surety company determines your specific rate based on your personal credit history and financial strength. It is important to note that you are paying for the bond premium only, not the full $35,000 coverage amount required for your Georgia used car dealer license.

A Georgia Motor Vehicle Dealer Bond functions as a binding legal contract between three parties: the dealer (Principal), the Georgia State Board of Registration (Obligee), and the surety provider. Unlike business insurance, which protects your inventory, this surety bond acts as a line of credit designed to protect the consumer. If a licensed dealer violates state law - such as failing to deliver a valid certificate of title, tampering with an odometer, or failing to pay taxes - the affected customer or the state can file a claim against the bond. The surety company will investigate and pay out valid claims up to the $35,000 bond amount. However, the dealer remains fully liable and must indemnify(reimburse) the surety for every dollar paid out, plus legal fees.

A Georgia Motor Vehicle Dealer Bond is a mandatory licensing requirement for any individual or business applying for a Used Motor Vehicle Dealer License (UC) or a Used Motor Vehicle Parts Dealer License (UP). The Georgia State Board of Registration of Used Motor Vehicle Dealers requires this $35,000 surety bond to prevent fraud and unlicensed activity. This requirement specifically applies to independent dealers, wholesale dealers, salvage pools, and auto brokers who buy, sell, or negotiate the sale of used cars. Notably, franchise dealers (who sell new cars) are exempt from this specific state board requirement, as they are regulated differently. However, anyone selling five or more used vehicles in a 12-month period must be licensed and bonded to operate legally in the state.

To get a Georgia Motor Vehicle Dealer Bond, you must apply with a licensed surety provider, who will generate a quote based on your personal credit history. Once accepted, you will sign the official bond form and submit it - along with your Power of Attorney - to the Georgia State Board of Registration of Used Motor Vehicle Dealers as part of your initial license application. To renew your bond, you typically do not need to file a new form with the state; instead, you pay your renewal premium to the surety company to keep the bond active. This is critical for the biennial license renewal: all Georgia dealer licenses expire on March 31st of even-numbered years. You must ensure your bond is current and active before this deadline, or your license renewal will be rejected by the Board.