AL motor vehicle dealer bonds.
$1,500 flat. Soft pull.

Alabama requires every licensed motor vehicle dealer to file a $50,000 bond with the Department of Revenue. Ours is $1,500 flat — 3% of the bond amount, identical for every dealer. One soft credit pull, e-signed in 1–2 business days.

Required for your AL dealer license — new, used, motorcycle, trailer, and wholesale dealers
Fixed amount, fixed price — $50,000 bond, $1,500, no quote theater
Soft credit pull only — never affects your score, and the rate stays 3% either way
A-ratedA.M. Best carriers1–2 daystypical issuance1–3 yrterms available
Trusted by industry leaders
NYCEDC
BDG
Capital
McKinney
Terra
JLL
Triple Five
Georgetown
NYCEDC
BDG
Capital
McKinney
Terra
JLL
Triple Five
Georgetown
How it works

Three steps to licensed.

Your dealer license is waiting on this bond. Here's the entire process — no broker phone tag:

TODAY · 5 MINUTES

Apply once, online

Business details, owner information, effective date. That is the application — the only extra step is a one-time consent to a soft credit pull.

WITHIN 48 HOURS

Reviewed & approved

Most of these clear quickly; if underwriting needs anything, you hear from an underwriter within 48 hours. The credit check is a soft pull that never affects your score.

1–2 BUSINESS DAYS

E-sign & file with the Department of Revenue

Pay online and receive the executed bond (form MVT 4-3) ready to file with your dealer license application. Wet-ink originals mailed whenever the state insists.

The whole pricing page.

$50,000 bond × 3% = $1,500, one-time per term. Fixed amount, fixed price, multi-year if you want it.

1-year term
$1,500
2-year term
$3,000
3-year term
$4,500
About this bond

What it is and who needs it.

What the bond actually guarantees

Alabama licenses motor vehicle dealers through the Department of Revenue, and conditions the license on a $50,000 surety bond. The bond is a consumer-and-public-protection guarantee: it stands behind clear title on the vehicles you sell and your compliance with Alabama's motor vehicle sales laws.

It's a three-party arrangement: you (the principal), the surety carrier standing behind you, and the State of Alabama together with harmed buyers (the protected parties). If a dealer fails to deliver clear title, misapplies a customer's money, or otherwise violates dealer law, the harmed party can recover against the bond.

It is not insurance for you — if the surety pays a claim, you repay the surety. The $50,000 amount took effect September 1, 2020 (up from $25,000), aimed squarely at curbstoning and title fraud. Dealers who deliver clean title and keep good records treat the bond as a license formality, not a risk.

Ala. Code §40-12-398 (form MVT 4-3)Alabama motor vehicle dealers are licensed by the Department of Revenue under Ala. Code 1975 §§40-12-390 through 40-12-400. Section 40-12-398 requires every licensee to file a continuous $50,000 surety bond on the department's Motor Vehicle Surety Bond form (MVT 4-3). The amount increased from $25,000 to $50,000 effective September 1, 2020 — confirm the current amount on your application.

You need this bond if you're

Applying for an AL dealer license — new, used, motorcycle, trailer, or wholesale
Renewing your dealer license and your current bond is expiring or non-renewing
A rebuilder or reconditioner the Department of Revenue ties to a bond filing
Moving to Alabama from another state and getting licensed here

Five minutes. The whole thing.

These are the actual underwriting fields, including a one-time consent to a soft credit pull. Submit once and your bond is typically issued within 1–2 business days.

Start the application →
FAQs

Common questions.

If yours isn't here, the bond team can usually answer within the hour.

Do I pay the $50,000? +
No. You pay $1,500 — the flat 3% of the bond amount. The $50,000 is the surety's maximum liability to the state and harmed buyers; it's not a deposit, and nobody holds your money.
Who requires this bond? +
The Alabama Department of Revenue requires it as a condition of a motor vehicle dealer license, under Ala. Code §40-12-398. The bond is filed on form MVT 4-3. No active bond, no license.
What does the bond guarantee? +
That you deliver clear title on the vehicles you sell, handle customer funds properly, and follow Alabama dealer law. If you fail to and someone is harmed, they can claim against the bond — and if the surety pays, you repay the surety.
Is there a credit check? +
Yes — one soft credit pull, which never affects your score. It's the only extra step beyond the application, and it informs approval, not price. The rate is a flat 3% either way: credit can affect whether we approve the bond, never what it costs.
When does it renew? +
Terms run 1, 2, or 3 years — your choice at purchase. You'll get renewal notices 60 and 30 days before expiration, with autopay available, and the bond must stay active for your dealer license to stay valid.
Related bonds

Other New York bonds.

The Department of Revenue is waiting on one document.

$1,500 flat, five-minute application, e-signed bond in 1–2 business days. Free until issued.

Your premium @ 3%$1,500
Apply now →