Not in the District of Columbia? Motor vehicle dealer bonds in other states

District of Columbia motor vehicle dealer bonds.
$500 flat.

Also known as the District of Columbia auto dealer bond or car dealer bond.

The District of Columbia requires every licensed motor vehicle dealer to maintain a $25,000 bond under D.C. Code § 50-603. Ours is $500 flat — set by our carrier's rate book, identical for every dealer. A quick soft credit check may apply; the bond is issued when you pay.

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Required for your DC dealer license — new and used dealers, before the license issues
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Fixed amount, fixed price — $25,000 bond, $500, no quote theater
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One soft credit pull — never a hard inquiry, and it never affects your score
A-ratedA.M. Best carriersInstantissued the moment you pay2 yrstatutory term cycle
Trusted by industry leaders
New York City Economic Development Corporation (NYCEDC)
Blumenfeld Development Group (BDG)
Capital Development Partners
McKinney Properties
Terra Capital
JLL (Jones Lang LaSalle)
Triple Five Group
The Georgetown Company
New York City Economic Development Corporation (NYCEDC)
Blumenfeld Development Group (BDG)
Capital Development Partners
McKinney Properties
Terra Capital
JLL (Jones Lang LaSalle)
Triple Five Group
The Georgetown Company
Price

How much does a District of Columbia motor vehicle dealer bond cost?

$500 at the $25,000 amount, the same for every applicant.

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 · ONLINE

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 check.

RIGHT AWAY

Approved

Most are approved as soon as you apply. One soft credit pull, never a hard inquiry, and it never affects your score. If it needs a second look, one to two business days at most.

WHEN YOU PAY

E-sign & file with the DMV

Pay online and receive the executed $25,000 bond, ready to file with your DC dealer license application. Wet-ink originals mailed whenever the District insists.

About this bond

What it is and who needs it.

What the bond actually guarantees

The District of Columbia licenses motor vehicle dealers and conditions the license on a $25,000 surety bond under D.C. Code § 50-603. The bond is a consumer-and-public-protection guarantee: it stands behind clear title on the vehicles you sell and your compliance with DC's motor vehicle sales laws.

It's a three-party arrangement: you (the principal), the surety carrier standing behind you, and the District of Columbia 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 — and § 50-603 designates the Mayor as agent for service of process on the bond.

It is not insurance for you — if the surety pays a claim, you repay the surety. The statute runs these bonds on a two-year cycle; dealers who deliver clean title and keep good records treat the bond as a license formality, not a risk.

D.C. Code § 50-603Under D.C. Code § 50-603, each person licensed as a motor vehicle dealer in the District must maintain a corporate surety bond of not less than $25,000, conditioned on compliance with the District's motor vehicle laws and the delivery of clear title. The section designates the Mayor as agent for service of process on the bond and is administered in connection with DC DMV dealer licensing. Confirm your exact bond amount and term on your license application.

You need this bond if you're

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Applying for a DC dealer license — new or used motor vehicle dealer
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Renewing your dealer license and your current bond is expiring or non-renewing
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Adding a location that the District ties to a separate bond filing
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Moving into the District from Maryland or Virginia and getting licensed here
After you buy

Claims, renewal, filing, and what sets the price.

If a claim is made

A claim comes from the party the bond protects, the obligee named on the form, when the duty the bond guarantees is not met.

The surety investigates and pays a valid claim, up to the $25,000 bond amount. You then repay the surety: a surety bond is a guarantee of your performance, not insurance for you.

Renewal and term

The carrier issues this bond for a single two-year term; the term cannot be changed at checkout.

Renewal falls on the statutory date, October 8, in the year your term ends.

Renew before the expiry date to keep the bond in force: the license, permit or contract it backs expects continuous coverage.

How to file it

E-sign & file with the DMV. Pay online and receive the executed $25,000 bond, ready to file with your DC dealer license application. Wet-ink originals mailed whenever the District insists.

What sets the price

The premium is fixed at $500 at the $25,000 amount for every applicant: the carrier’s rate book prices this bond by the form, not by your credit or your business profile.

One soft credit pull, never a hard inquiry, and it never affects your score.

Where a check runs, it decides approval; the rate is the same for everyone approved.

One application, issued instantly.

These are the actual underwriting fields, including a one-time consent to a soft credit check. Submit once and your bond is issued when you pay.

Start the application →
FAQ

Common questions.

Do I pay the $25,000?No. You pay $500 — the price set by our carrier's rate book for this bond. The $25,000 is the surety's maximum liability to the District and harmed buyers; it's not a deposit, and nobody holds your money.
Who requires this bond?The District of Columbia requires it under D.C. Code § 50-603 as a condition of a motor vehicle dealer license, administered through DC DMV dealer licensing. 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 DC 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, never a hard inquiry, and it never affects your score. It's the only extra step beyond the application, and it informs approval, not price. The price is $500 either way: credit can affect whether we approve the bond, never what it costs.
When does it renew?DC runs dealer bonds on a statutory two-year cycle; you can buy a single 2-year term and we align it. You'll get renewal notices 60 and 30 days before expiration, with autopay available, and the bond must stay active for your license to stay valid.
Which A-rated carriers underwrite these bonds?Typically Arch Insurance Company (A.M. Best A+) or Nationwide Mutual Insurance Company (A.M. Best A). Which one writes your bond depends on the bond type and your state. The carrier's name and official signature are printed on the bond you receive.
How do I contact Light RFP about this bond?Email insurance@lightrfp.com. It reaches the bond team at Light RFP Risk Management Services LLC (NY DFS License # PC-1978982). Write to us about quotes, applications, bond forms or certificates. We will respond within 24 hours.
Related bonds

Other District of Columbia bonds.

Nearby states

The same bond in nearby states.

Been told you need a different amount?

Price and requirements checked on the carrier’s application, . Page updated .

The DMV is waiting on one document.

$500 flat, short application, bond issued when you pay. Free until issued.

Your price$500
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