District of Columbia Auto Dealer Bond

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What Is a District of Columbia Auto Dealer Bond?

Several states throughout the country require motor vehicle dealers to obtain a license to sell vehicles to the public. In the District of Columbia, part of the licensing process involves securing a District of Columbia auto dealer bond. This surety bond is a form of protection for consumers that buy vehicles from a licensed auto dealer.

Should the auto dealer fail to comply with DC rules and regulations when conducting business, a claim can be made against an auto dealer bond for compensation. Auto dealers are required to repay any successful claims over time.

How Does a District of Columbia Auto Dealer Bond Work?

As a District of Columbia surety bond, an auto dealer bond involves three parties under a contract.

The Obligee

The licensing authority responsible for overseeing auto dealers in DC is known as the obligee of the bond.

The Principal

The licensed auto dealer is known as the principal of the bond, or the individual or business required to secure the bond for licensing purposes.

The Surety

The surety company provides the bond to the principal and pays any claims made against the bond. The principal then repays the surety over time.

DC Auto Dealer Bond Obligee Details

For DC auto dealers, the obligee of an auto dealer bond is:

Department of Consumer and Regulatory Affairs

941 N Capitol Street, NE

Washington, DC 20002

Phone: 202-737-4404

Who Needs a District of Columbia Auto Dealer Bond?

Nearly all types of auto dealers in DC are required to have a license and an auto dealer bond. Both new and used auto dealers as well as auto repair dealers must have a District of Columbia auto dealer bond to comply with DC laws. The amount of the bond required varies depending on the category in which the auto dealer falls.

How Do You Get a DC Auto Dealer Bond?

Obtaining your District of Columbia auto dealer bond is a simple process that starts with a short application submitted online. The surety company provides a bond quote based on the application details and instructions on how to pay for the bond and finalize the process.

How Much Does a District of Columbia Auto Dealer Bond Cost?

The price of a District of Columbia auto dealer bond varies from one auto dealer to the next, based on the amount of the bond required and the financial history of the dealer.

New and used auto dealers operating in DC must have a bond of no less than $25,000. Auto dealer repairers are required to have a bond of $2,000 or $5,000, depending on the number of employees.

The bond total is not the out-of-pocket cost for a DC auto dealer bond. Surety bonds are priced as a percentage of the total bond amount, usually ranging from 1 to 10 percent.

Can I Get a District of Columbia Auto Dealer Bond with Bad Credit?

The surety company that provides a District of Columbia auto dealer bond determines the percentage of the bond total by evaluating the financial track record of the auto dealer.

Bad credit is not a disqualifier in obtaining a bond, but if credit has been an issue in the recent past or the auto dealer is not otherwise financially stable, the price for the bond will be higher.

How Do I Renew My District of Columbia Auto Dealer Bond?

DC auto dealers must renew their auto dealer bond every two years, which is the same time an auto dealer license renews. You’ll receive reminders every two years before your license and auto dealer bond are about to expire. It is important to send in your renewal on time so that you don’t risk invalidating your bond.

Frequently Asked Questions

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.

Yes. You can get 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.

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.

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.


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