Illinois Motor Vehicle Dealer Bonds
Illinois law requires motor vehicle dealers to be bonded to conduct business. Surety bonds make it so the dealers have financial responsibility to restore the cost of any improper business handling to the customer. Click the Let’s Roll button below to fill out the application for a quick quote!
How Much Does a Bond Cost in Illinois?
Jet works with many insurance companies to get the lowest cost for you. Our rates start at $32 each month or $400 for a full year of coverage.
|Price Tier*||New/Used Auto Dealers|
|Monthly | Annual|
|Preferred||$32 | $400|
|Standard||$83 | $1000|
|Credit Repair||$177 | $2000|
*Not all available price tiers are shown. Prices reflected are not guaranteed and are subject to change at any time. Since bonds are based on personal credit and other factors, a soft credit check is required to see what rates the dealer qualifies for.
Motor Vehicle Dealer Bond Requirement in Illinois.
Illinois requires a $50,000 bond for all vehicle dealers. The bond must be valid during the license period, which ends on December 31st of each year. The $50,000 bond applies to one location; multiple dealership locations need to file separate bonds. The bond amount was previously $20,000, but the limit was increased on January 1, 2018 with the passing of Senate Bill 1556.
It is mandatory for vehicle dealers to be bonded for the first 60 consecutive months of business. If during that time the dealer hasn’t omitted or submitted any registration/title fees or taxes late, the dealer will not have to comply with bond renewal requirements.
How Does a Car Dealer in Illinois Apply for a Bond?
By clicking the apply now button below you will be taken to our online application which can be completed quickly. Once submitted, Jet will work on getting your quote over to you both via phone call and email.
|Bond Application for Illinois Car Dealers|
|$50,000 Motor Vehicle Dealer Bond|
Items to Be Submitted with an Illinois Dealer Application.
All relevant forms must be included with the dealer application or it will be rejected. Applications must be notarized.
- Bond in the amount of $50,000 or a certificate of deposit in the name of the business and the Secretary of State. Original documents only
- Certificate of Insurance with business name and location. Minimum requirements for coverage are: $50,000 for property damage, $100,000 for bodily injury, and $300,000 for each accident. Insurance must cover the entire licensing period
- Application fee in the proper amount. The application fee for a full year is $1,000. If the application is turned in between June 15-December 31st, the fee is $500
- Receipt confirming a criminal background check was completed by an Illinois State Police-approved vendor
- Receipt confirming completion of the training program provided by the Secretary of State
- Form showing proper zoning for dealership (unless in Chicago)
- If leasing property, a copy of the lease showing that the lease will not expire before the license expires on December 31st
- If the dealership is in Chicago, a proper zoning form is not required; a copy of the city business license will cover this requirement
- If selling new vehicles, a copy of the franchise agreement made with the manufacturer
- If maintaining a repair shop, evidence of receiving or applying for a hazardous waste generator number from the Illinois Environmental Protection Agency
What is the Illinois Recovery Trust Fund?
To further protect consumers, the Illinois Dealer Recovery Trust Fund was created to aid consumers after a dealer has gone out of business. Dealers must pay a $500 fee into the Fund at the initial license application or at renewal, with a $50 fee per each additional location.
Should the Fund reach higher than $3,500,000 by August 31st, the fees for the following year may be cancelled. Dealers who have not had claims against the Fund, have not violated the terms of the Fund, or have not had their license suspended or revoked, will not have to pay the Fund fee. Dealers who have done the above stated things will still be required to pay the fee.