Oregon Auto Dealer Bond

Oregon Auto Dealer Bond

Most motor vehicle dealers must provide the Oregon Department of Transportation with a $50,000 surety bond to be licensed. The Oregon Auto Dealer License Bond requirement provides the public and the state protection from loss or damage caused by a vehicle dealer’s fraudulent or irresponsible activities. Dealerships that only buy and sell motorcycles, ATVs, snowmobiles, and mopeds must maintain a $10,000 license bond.

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Jet provides auto dealers direct access to surety underwriters and claims handlers without any agents or brokers in the middle. Eliminating the middleman dramatically simplifies the bond purchase and filing process with the lowest rates, no down payment, a no-obligation monthly payment option, and the best defense should anyone ever make a claim on your bond.

What's the Lowest Price for the Oregon Auto Dealer Bond?

The $50,000 motor vehicle dealer license bond starts at $31 a month. Many dealers choose a three-year bond term, which we offer for just $758, to align their bond term with their license. As the chart below illustrates, dealers that only offer motorcycles, ATVs, snowmobiles, and mopeds can get their license bond from Jet for $10 per month.

Bond TypeBond LimitMonthly1 Year3 Year
Motorcycle/ATV Only Dealer$10,000$10$100$250
Motor Vehicle Dealer$50,000$31$313$783
Oregon Motor Vehicle Dealer Bond Prices

Your personal credit and experience determine the rate you receive, but this does not slow down the purchase process which only takes about 3 minutes. Rates in the chart are not an offer of surety, you will have to qualify online.

Jet is the only company to offer monthly payments on the Oregon Motor Vehicle Dealer Bond. A few brokers will help you finance your bond through a specialty premium finance company, but those offers come with 30-40% down payments and 20-30% APRs! Jet’s monthly payments are included in its rate filing with the Oregon Department of Insurance and require zero down payment, zero interest, and zero fees. As long as the credit or debit card you provide Jet clears, your bond remains in force—it’s that simple! And don’t worry, if anything ever happens to that card, we follow up to get a replacement well before sending in a notice of cancellation. The best part is that unlike with the brokers, you can cancel the bond at any time by simply stopping payment so you truly only pay for what you use.

Can Jet File the Oregon Auto Dealer Bond for Me?

Yes! Jet will file the bond with the DMV Business Licensing Unit for you. You will receive a copy of the bond for your records following the purchase of the bond online. 

If you are planning to file the bond with other paperwork—new dealers are required to do this—we will send you the original bond form with the raised seal free of charge.

The Oregon Auto Dealer Bond is filed directly to the address below:

Oregon Department of Transportation
DMV Business Licensing Unit
1905 Lana Ave NE
Salem, OR 97314

With Jet as your surety partner, you can focus on buying and selling cars and leave the paperwork to us!

Can I Cancel My Dealer License Bond and Get a Refund?

Yes, cancellation is always possible. Motor vehicle dealers can cancel the bond at any time and Jet will send back a prorated refund for the remaining time on the bond. Jet’s monthly payment option makes it even easier for dealers to manage their bonds. Cancel at any time and don’t worry about wasting a dime.

The Oregon Department of Transportation requires 30 days' notice before the bond is cancelled, which unfortunately reduces the time remaining on the bond and therefore must be factored into the prorated refund. With Jet, if you change your mind after cancelling or you were late on a payment you won’t fall into a suspended license if addressed with Jet within that 30-day grace period.

How Do Motor Vehicle Dealers in Oregon Avoid Bond Claims?

The most common claim on Oregon motor vehicle dealer bonds involves dealers selling cars without a free and clear title—so making sure you transfer title appropriately to the car buyer is the best way to avoid any issues for your bond and consequently, your license. To avoid all claims, auto dealers must abide by the dealer regulations set forth by the Oregon Department of Transportation vehicle code, which are summarized in the following list:

If a customer brings a complaint or concern, it is in your best interest to respectfully hear them out and address the complaint, if possible, to avoid the customer bringing their complaint to the Department of Transportation. Part of the Motor Vehicle Services Department’s mission is to protect financial and ownership interests in vehicles with a mandate to investigate dealers following any complaint. The last thing any dealer wants is for an investigator to conduct a lengthy examination. The Department of Transportation investigator will look for similar infractions to the original complaint because they assume where there is smoke, there is fire. Dealers with multiple infractions quickly rack up significant penalties and fees.

What Happens if a Claim Is Filed on My Dealer Bond?

Jet will let you know you the moment we are notified of a claim by the claimant or the Oregon Department of Transportation. You will want to provide any and all related information directly related to the incident(s) as Jet only has 45 days to investigate the claim. Jet’s claim department works hard to weed out frivolous accusations and assist dealers in their defense. Should the claim be valid, Jet will pay the claimant. 

Unlike a business insurance policy, which protects the dealer from unforeseen accidents, a surety bond protects the public, usually a dealer’s customers, from the unlawful actions of the dealer, such as messing with a car’s VIN. Dealers are ultimately responsible for their own actions and therefore must reimburse the surety company for any claims paid. Think of the surety as providing you a letter of credit that you need to demonstrate to the Department of Transportation that it’s safe to license you to sell cars to the public. 

While other carriers may try to avoid legal fees by quickly paying claims and then seeking reimbursement from the dealer, Jet prefers to help dealers resolve claims amicably with the claimant, and ideally avoid them altogether. 

While there is a rule requiring the Oregon Department of Transportation to respond to a claim within 25-30 days depending on whether the underlying vehicle transaction was financed or settled in cash, neither the Oregon Department of Transportation nor the Oregon Department of Insurance specify how quickly the dealer license bond claim must be handled.

In the absence of a specific rule or law mandating how claims must be handled for motor vehicle dealer bonds, Jet utilizes the Oregon insurance regulations for claim handling. Jet will respond to the claimant within 30 days of the notice and provide the claimant and dealer with all instructions and forms for the related claim on the license bond. With a proper claim filing, including a proof of loss form, Jet will perform its investigation of the claim certifying if the claim is valid. The investigation period can be up to 45 days from the claim notice and Jet may request additional time if necessary, but generally the claim should be paid, if deemed valid, within 45 days of the surety company receiving notice of the claim. Jet strives to ensure our decision is justified before accepting or denying a dealer bond claim. 

In the event a valid claim is paid, Jet will immediately notify the Department of Transportation placing the dealer’s license under suspension until the dealer reimburses for the claim. Remember, Jet acts as a guarantor that dealers will rectify any valid claims. 

The max amount the bond will payout to a retail customer of the dealer is $50,000. Any other claimant on the bond can only claim a maximum of $10,000. 

Why Does Oregon Require Dealers to Purchase a License Bond?

The Oregon Department of Transportation Driver and Motor Vehicles Service Division is charged with protecting “financial and ownership interests in vehicles” for the customers and counterparties of the 2,200 licensed auto dealers in Oregon. The required auto dealer bond is a tool to financially protect the public from the consequences of a dealer committing an infraction of the laws that govern their dealer license, such as not transferring title with the sale of a car.

If the public is harmed financially, the surety bond guarantees recompense. By involving the insurance industry, Oregon’s state government leverages the surety carriers’ financial strength and expertise in handling time-consuming situations that can cause additional departmental expenses for the Department of Transportation.

How Does the Application Process Work For the Bond?

While many agents and carriers require dealers to go through a cumbersome process to obtain a surety bond, including paper applications, indemnity agreements, third party premium finance applications, 24+ hour quote turnaround times, etc., getting a license bond for your dealership is easy with Jet. Click the button below that corresponds to your dealership, answer a few easy questions, select your terms and provide your payment information in our secure system. Jet’s website will allow you to execute your bond entirely online in about 3 minutes. 

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How to Renew the Oregon Motor Vehicle Dealer Bond

It doesn’t have to expire with Jet. What Jet provides that other carriers and agents cannot, is the ability to purchase the bond on monthly payment terms. As long as the monthly payment is made the bond does not expire and can be cancelled at any time if the dealer decides to stop paying the monthly premium. 

Unlike with some other license bonds, the expiration date of the Oregon auto dealer bond does not need to match the license certificate, although many dealers prefer that they do match. Vehicle Dealer Certificates are valid for three years after which the dealer will need to renew their license with ODOT. 

When Does a Motor Vehicle Dealer Bond Expire in Oregon?

It doesn’t have to expire with Jet. What Jet provides that other carriers and agents cannot, is the ability to purchase the bond on monthly payment terms. As long as the monthly payment is made the bond does not expire and can be cancelled at any time if the dealer decides to stop paying the monthly premium. 

Unlike with some other license bonds, the expiration date of the Oregon auto dealer bond does not need to match the license certificate, although many dealers prefer that they do match. Vehicle Dealer Certificates are valid for three years after which the dealer will need to renew their license with ODOT. 

Consequences for Dealers Operating Without a Surety Bond

According to the Oregon Vehicle Code, section 822.045, it is illegal for auto dealers to not purchase a bond or letter of credit substitute, or to allow an interval where a bond is not active. A dealer’s failure to uphold a bond is considered as a Class A misdemeanor, punishable by a fine up to $6,250 or up to one year in jail. That said, the most common punishment for not having a bond is a suspended license. 

Oregon Auto Dealer Bond Form

Notary Bond Application:

X

Business Information:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Employee Dishonesty Bond Application:

Business Information:

Business Description:

Coverage Requirements:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Contract Bond Application:

X

Business Information:

Owner Information:

Job Details:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Worker's Compensation Application:

X

Business Information:

Business Description:

Coverage Requirements

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information: