Contact Our Experts

North Carolina Auto Dealer Bond

#1 Bond Writer with the Lowest Rates
Our high volume allows us to negotiate excellent rates.
100% Money Back Guarantee
Your bond will be accepted, or your money back.
Buy Your Bond Online
Fast online application process, instant approvals.
Get Bonded in Three Steps
  • 1. Apply Online
  • 2. Get Your Free Quote
  • 3. Buy Your Bond Online
Insurance brokers representing clients can apply here.

What is a North Carolina Auto Dealer Bond?

Car dealerships located in North Carolina are required to have a license to operate their business legally. The licensing process includes submitting an application along with a North Carolina auto dealer bond. This type of surety bond acts as a guarantee that the dealership will work with customers in line with state regulations and rules.

A North Carolina auto dealer bond is structured as a three-party agreement between the principal, the obligee, and the surety. Licensed auto dealers are the principal, while the obligee, the North Carolina Division of Motor Vehicles, is the state authority mandating the bond be in place. The surety is the company providing the bond to the dealership.

Do I Need an Auto Dealer Bond in North Carolina?

In North Carolina, any person or entity engaged in the sale of motor vehicles for profit is considered an auto dealer. A license is required to operate legally, as is a North Carolina auto dealer bond. Both new and used motor vehicle dealers are required to meet North Carolina auto dealer bond minimums for each location they operate.

North Carolina Auto Dealer Bond Obligee Information

Under North Carolina state laws, auto dealers must have an active license in order to do business legally. Part of the licensing requirements for new or renewing auto dealers is to post a North Carolina auto dealer bond to the obligee, the North Carolina Department of Transportation, Division of Motor Vehicles. The specific obligee information is below:

Department of Transportation, Division of Motor Vehicles

License and Theft Bureau Dealer Unit

3129 Mail Service Center

Raleigh, NC 27697

Phone: 919-715-7000

What Does a North Carolina Auto Dealer Bond Cost?

North Carolina dictates the amount of the bond a dealership needs based on the number of locations it operates. For a single location, a North Carolina auto dealer bond of $50,000 is necessary. Each additional salesroom requires a $25,000 auto dealer bond. Fortunately, licensed dealers do not need to pay the entire amount to obtain a bond.

An auto dealer bond is priced as a small percentage of the total bond amount. Depending on several factors, including personal credit score, industry experience, and business financials, the rate of the bond will fall between 1 and 10%. If your credit is not strong or business financials not well-documented, you are likely to pay a higher percentage for your North Carolina auto dealer bond.

How Do I Get a North Carolina Auto Dealer Bond?

Obtaining your North Carolina auto dealer bond starts with submitting a quote request to a surety agency. Based on the details of your dealership, you are provided a price for your bond. You can then submit a formal application and complete the payment and bonding process.

North Carolina Auto Dealer Bond Terms and Expiration Date

North Carolina auto dealer bonds are continuous, meaning no stated expiration date is required on new bond certificates. However, auto dealer bonds must be renewed periodically to ensure a licensed auto dealer is still compliant with auto dealer requirements.


Frequent Questions

What does an auto dealer bond cost?

Costs are a percentage of the auto dealer bond amount that's required of you, which is based on your personal credit. Use our bond pricing tool to get a quick ballpark estimate.

Can I get a bond with bad credit?

Yes. You can get you approved for a bond regardless of your credit situation. However, the price will increase. You can apply to get an instant approval. As the largest writer of surety bonds in the U.S., we have access to high risk markets that many other agencies do not.

How long does the application take?

It only takes minutes, as we can approve you for your bond instantly online. You can get a no obligation quote on our website at any time.

Can I get auto dealer bond insurance to protect myself?

No. An auto dealer bond does not protect you, it protects the public. However, you can protect yourself or your customers by getting fidelity bonds.


Get Your Surety Bonds from the Best Bonding Companies
We work with the top A-rated, T-listed surety bond companies in the nation

Jennifer Henson
Our company has been with JW Surety for several years now so when we needed to obtain a bond for a new company, we immediately went to them for help. Our rep, Melissa, was extremely helpful and prompt which made the process extremely easy for me.
David Tillotson
Trying to get a local Surety Bond was like driving a car on three tires. I searched Surety Bonds and found JW Surety Bonds. I got online and filled out the information and with in 30 minutes received a response from Melissa. She was informative, friendly and helpful. One more super satisfied customer.

The Nation’s #1 Volume Surety Bond Service
Our company writes $4,000,000,000+ in bonds each year!
  • #1 Bond Writer
    We are the nation's largest volume bond producer.
  • Easy Process
    Fastest online surety bond application process; we approve bonds instantly.
  • Lowest Rates
    Our high volume allows us to negotiate lower rates on your behalf.
  • Claim Specialists
    Your JW surety bond agent will be your claims advocate when you need them most.

Don't wait days to get bonded. Get your surety bond instantly!

Get Your Free Bond Quote

About JW Surety Bonds

We are a family owned and operated agency established in 2003. We started with just two people, and grew to become the largest volume bond producer in the nation with 50+ employees. Since day one, our team focus has been on providing our clients low rates, an easy process, and the best in customer service. Learn more about our company.