Pennsylvania Auto Dealer Bonds2019-07-12T00:21:34+00:00

Auto Dealer Bonds – Pennsylvania

Surety bonds gives peace of mind to the customer, as the bond shows that the dealer has taken legal actions to protect the customer if the dealer acts in a fraudulent way while conducting business. Carrying a bond is just one requirement put in place for auto dealers by the Pennsylvania Department of Transportation Bureau of Motor Vehicles Regulated Client Services. If they do not follow these laws, their bond is in place to reimburse the customer for any monetary loss incurred.

Although similar to insurance, bonds are different in the fact that the dealer must pay the surety company back for any payments made on the claim as well as legal fees incurred during the process.

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pennsylvania auto dealer bond

How Much Will a Pennsylvania Auto Bond Cost?

A number of Pennsylvania auto-related businesses must carry a bond. Car manufacturers and dealers are required to have a $20,000 bond, full agents and recreational dealers must have a $30,000 bond, and a messenger service must carry a $50,000 bond. These types of bonds must have a separate bond for each business location. Salvors need a bond in the amount of $10,000 and it will cover all places of business.

The price is dependent on the license classification, but also dealership owner’s personal credit, number of years in business, and other factors.

Price Tier* Auto Dealer /
Manufacturer Bond
Agent / Recreational
Dealer Bond
Service Bond
Monthly | Annual Monthly | Annual Monthly | Annual Monthly | Annual
Preferred     $10 | $100     $11 | $125     $18 | $208     $10 | $100
Standard     $31 | $375     $37 | $450     $42 | $500     $19 | $200
Credit Repair     $75 | $800     $90 | $960       $88 | $1065     $47 | $500

*Pricing tiers above do not reflect all available rates. The rates shown in the table are not guaranteed, as a soft credit check is required to determine the price of the bond. The rates above are subject to change at any time.

Definitions of Pennsylvania Auto License Types.

  • Manufacturer- someone who builds or assembles vehicles or vehicles bodies or motors
  • Dealer- someone who buys, sells, or exchanges motor vehicles for business purposes
  • Salvor- someone who profits from obtaining abandoned vehicles with the intent of taking apart, selling, recycling, rebuilding, or exchanging a vehicle or its parts
  • Full agent- a county treasurer or someone other than a dealer or manufacturer who is able to release temporary registration cards and plates by clearance from the Bureau
  • Messenger service- someone who acts as a paid third party to acquire vehicle titles, registrations, drivers’ licenses, etc. from the department
  • Card agent- a notary public who is able to distribute temporary registration cards along with applications for transfer of registration plates and authorized by the Department of State

How Can a Dealer Apply for a Bond Online?

By clicking the apply now button below, the application will guide you through the quick process to get your quote in just minutes.

Bond Applications for Arizona Dealers
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$20,000 Auto Dealer / Manufacturer Bond
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$30,000 Bond for Full Agents and Recreational Dealers
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$50,000 Messenger Service Bond
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$10,000 Bond for Salvors

When is the Dealer Licensing Period?

Pennsylvania aligned the expiration date for manufacturers, distributors, and dealers. These licenses expire on May 31st of odd-numbered years. Salvor licenses, however, expire on December 31st each year.

Bonds are not connected to license expirations and shall be continuous unless cancelled by the surety or not renewed by the principal.

Pennsylvania Licensing System.

The Pennsylvania Licensing System (PALS) has been put in place largely to make it easier, faster and more eco-friendly to apply or renew licenses or submit other documentation. PALS supports the State Board of Vehicle Dealers, Manufacturers and Salespersons as well as 28 other licensing boards.

All licensing will take place through the website.