Motor Vehicle Dealer Bonds – Oregon
There are two main bond types required by the Oregon Department of Transportation, Driver & Motor Vehicles Services. One of these is a $50,000 motor vehicle dealer or rebuilder bond (previously a $40,000 limit) and the other is a $10,000 bond for dealers of motorcycles, ATVs, snowmobiles, and mopeds (previously a $2,000 limit). The limits of these bonds were increased on January 1, 2018 after the passing of Senate Bill 974.
The license is required to be issued for three-year terms but the bond may be purchased for one, two, or three years depending on the surety company’s options and dealer’s preference.
Pricing For the Oregon Auto Dealer Bond.
While pricing is as low as $100 for one year or $9 monthly, a soft credit check must be ran to see what rates the dealership owner qualifies for. This credit check does not affect the credit score or show up on any reports.
|Price Tier*||Motor Vehicle
ATV, Snowmobile Bond
|Monthly | Annual||Monthly | Annual|
|Preferred||$25 | $313||$9 | $100|
|Standard||$52 | $625||$19 | $200|
|Credit Repair||$94 | $1000||$28 | $300|
*Personal credit, years in business, and license type are just a few of the factors analyzed when preparing a quote for dealers in Oregon. The chart above does not show all available credit tiers, and the rates reflected are subject to change.
Requirements for an Oregon Vehicle Dealer Certificate.
To obtain a Vehicle Dealer Certificate, an applicant must fill out the Standard Application and turn it into the Business Licensing Unit at the Salem DMV Headquarters. The applicant must also complete eight hours of pre-licensing education from an authorized provider. The Oregon DMV will not issue a Vehicle Dealer Certificate without a bond already on file at the time the application is submitted.
How Does the Application Process Work For the Bond?
Applying for a bond through Jet is quick and simple. Complete the application by clicking apply now button below that is next to the type of bond you need. Once a bond request is submitted, a quote will be put together and a link for purchase will be sent via email.
|Motor Vehicle Dealer Bond Applications|
|$50,000 Car Dealer Bond|
|$10,000 Motorcycle, Moped, ATV, Snowmobile Dealer Bond|
When Does a Bond Expire in Oregon?
Although surety bonds are a required aspect of the Vehicle Dealer Certificate, their expiration dates may not match up. Vehicle Dealer Certificates have a length of three years before needing renewal. Surety bonds, however, can be purchased in one-, two-, or three-year increments. Each year must still have $50,000 of coverage from a surety bond.
Regardless of which length is chosen, the bond is still mandatory and must be valid during the span of the Dealer Certification period. A reinstatement or a new bond can be sent in up to 45 days after the expiration date. If the DMV receives the necessary forms within 15 days, no fees will be added. However, between 15-45 days, a fee of $150 will be charged.
Past 45 days, the dealer will have to begin a new Vehicle Dealer Certificate application and will no longer be eligible for renewal. It is best to renew the bond prior to its expiration date to avoid this from happening.
Consequences of Not Carrying a Surety Bond.
Vehicle dealers are required to have a valid surety bond to conduct business in Oregon. According to the Oregon Vehicle Code, section 822.045, it is illegal to not purchase a bond or letter of credit, or to allow an interval where a bond or letter of credit is not active. Failing to uphold a bond or letter of credit is considered as a Class A misdemeanor, punishable by a fine up to $6,250 or up to one year in jail.