What is a Montana Motor Vehicle Bond?
Learn how to obtain this Montana Motor Vehicle Dealer License requirement today!
Any person who intends to be licensed in order to engage in the business of buying, selling, accepting on consignment, exchanging, or acting as a broker of new motor vehicles or used motor vehicles within the State of Montana is required to furnish a surety bond as dictated in section 61-4-101 of the Montana Code Annotated.
There are different types of motor vehicle dealer license. Each one requires a separate bond.
- Franchise Dealer (D)
- Used Dealer (U)
- Auto Auction Dealer (A)
- Wholesale Dealer (W)
- Broker Dealer (B)
- New Manufactured Home Dealer (MD)
What is the bond amount?
The bond amount will depend on the type of Motor Vehicle Dealer license you will be applying for.
|MOTOR VEHICLE DEALER LICENSE TYPE|
|$ 50,000||Franchise Dealers and Used Dealers|
|$ 5,000||Franchise Dealers and Used Dealers that sell snowmobiles, non-street legal motorcycles or quadricycles, boats, and personal watercraft only|
|$ 15,000||Franchise Dealers and Used Dealers that sell street legal motorcycles or quadricycles only|
|$ 50,000||Auto Auction Dealer|
|$ 50,000||Wholesale Dealer|
|$ 50,000||Broker Dealer|
|$ 50,000||New Manufactured Home Dealer|
You may be eligible for a very low bond premium, or less than 1% of the bond amount! Find out what you need to pay by getting your FREE quote here!
What are the bond conditions?
- The bond shall be issued by a Montana-licensed surety bond company such as Surety Bond Authority
- The bond must be approved by the Montana Department of Justice Motor Vehicle Division
- The Motor Vehicle Dealer should comply with all the provisions of the Montana Motor Vehicle Industry laws, and all the other rules and regulations that govern a motor vehicle dealer in Montana
- If the Franchise Motor Vehicle Dealer, Used Motor Vehicle Dealer, Auto Auction Dealer, Wholesale Dealer, Broker Dealer, and New Manufactured Home Dealer causes harm to his consumer due to a valid fraudulent act, the consumer will be eligible to file a claim for any losses incurred.
- The bond must be renewed annually. The bond’s expiration date should be December 31 of the current license year.
How can I obtain this bond?
You can easily obtain this bond by following these simple steps:
STEP 1: Apply
If you are ready to submit your application for this type of bond, you may easily do so here.
STEP 2: Underwriting
Once we have received your application, we will ask you a couple of important details needed for the underwriting process. This will include your financial history, your job performance history, and your credit score. An expert underwriter will evaluate all those.
STEP 3: Bond Execution
After you have satisfied the underwriter’s checklist, the bond will immediately be issued and sent to you!