Tennessee used motor vehicle dealer bonds.
$1,000 flat.
Also known as the Tennessee auto dealer bond or car dealer bond.
Tennessee requires every licensed motor vehicle dealer to file a $50,000 bond with the Motor Vehicle Commission. Ours is $1,000 flat — the price you see is the checkout price, identical for every dealer. A quick soft credit check may apply — never a hard inquiry — and the bond is issued when you pay.
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How much does a Tennessee used motor vehicle dealer bond cost?
$1,000 at the $50,000 amount, the same for every applicant.
Three steps to licensed.
Your dealer license is waiting on this bond. Here's the entire process — no broker phone tag:
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.
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.
E-sign & file with the Motor Vehicle Commission
Pay online and receive the executed bond (form IN-1316) with its power of attorney, ready to mail to the Motor Vehicle Commission with your dealer license application.
What it is and who needs it.
What the bond actually guarantees
Tennessee licenses motor vehicle dealers through the Motor Vehicle Commission (Department of Commerce and Insurance), 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 Tennessee's dealer laws, including delivery of a valid certificate of title and payment of a buyer's prepaid title, registration, and tax fees.
It's a three-party arrangement: you (the principal), the surety carrier standing behind you, and the State of Tennessee together with harmed buyers, sellers, finance companies, and government agencies (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. Dealers who deliver clean title and keep good records treat the bond as a license formality, not a risk.
You need this bond if you're
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 $50,000 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 Motor Vehicle Commission. Pay online and receive the executed bond (form IN-1316) with its power of attorney, ready to mail to the Motor Vehicle Commission with your dealer license application.
What sets the price
The premium is fixed at $1,000 at the $50,000 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: approved instantly, or after a quick credit check.
These are the actual underwriting fields, including a one-time consent to a soft credit pull. Submit once and your bond is issued when you pay.
Start the application →Common questions.
Other Tennessee motor vehicle dealer bonds.
Not sure this is the one your license calls for? These are the other motor vehicle dealer bonds we write in Tennessee. Each has its own statute and bond amount.
Other Tennessee bonds.
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 Motor Vehicle Commission is waiting on one document.
$1,000 flat, short application, bond issued when you pay. Free until issued.