Motor Vehicle Dealer Bonds – Utah
Utah laws state that auto dealers must be bonded as one of the license requirements. Requirements are overseen by the Utah State Tax Commission, Motor Vehicle Enforcement Division. Bonding brings protection to the consumer in the case that a dealer acts unethically, resulting in financial loss to the consumer. The bond will reimburse the consumer if a claim against the dealer is valid, but the dealer will need to repay the surety the amount of the claim.
Click Let’s Roll above to get started with the application process, which takes less than one minute. Upon submission of the application, Jet will work on putting together a low cost quote which will be sent to you via email with the option to purchase it directly through a link.
Dealer Bonds in Utah.
There are many types of dealers in Utah, but not all need a bond. New and used auto dealers must carry a $75,000 bond. Large trailer dealers (selling trailers over 2,000 pounds) are also required to have a $75,000 bond. Motorcycle, ATV, snowmobile, and small trailer dealers (under 2,000 pounds), as well as crushers, are all required to have a $10,000 bond. Body shops have a bond limit of $20,000.
What Is the Rate for a Motor Vehicle Bond?
Bonding provides coverage while only needing a small percentage of the cost. The dealer will only have to pay a large sum if there is a valid claim against the dealer.
By choosing Jet, you will receive the lowest rate available. We work with many insurance companies to keep costs low.
|Price Tier*||Used / New
Car Dealer Bond
|Monthly | Annual||Monthly | Annual||Monthly | Annual|
|Preferred||$24 | $281||$10 | $100||$10 | $100|
|Standard||$38 | $450||$19 | $200||$17 | $200|
|Credit Repair||$104 | $1125||$28 | $300||$38 | $400|
*Not all available rates are reflected in this chart. The final rate is based on a soft credit check of the dealership owner. Prices shown above are not subject to an offer and may change at any time.
What Is the Process of Applying for a Dealer Bond?
The application process can be done in under a minute. Click the button below that says Apply Now, follow the instructions, and receive your quick quote. It will then be immediately available for purchase.
|Application for Utah Auto Dealers|
|$75,000 Motor Vehicle Dealer Bond|
|$10,000 Motorcycle Dealer Bond|
|$20,000 Bond for Body Shops|
Dealer License Information.
In order to receive a license, dealers must:
- Complete the license application
- Carry a bond
- Include a picture of the sign and place of business
- Submit passport-style photographs of all owners
- Include license fees; $127 for a new/used auto dealer or special equipment dealer or $51 for a motorcycle or small trailer dealer
- Be fingerprinted and submit a Fingerprint Waiver with a $20 fee. Each owner, partner, or corporate officer must have a separate waiver and fee
- Complete an 8-hour orientation course
- Provide proof of a sales tax license
- Have evidence of permission from a Manufacturer to sell a certain make or model
- File the business name with the Department of Commerce
- Have an initial amount of 2 dealer plates
Within 5-10 days of receiving the application, the Motor Vehicle Enforcement Division will inspect the dealership to make sure it complies with standards. If the criteria are met, the MVED will issue a license for the dealership.
All licenses issued by the Motor Vehicle Enforcement Division expire on June 30 every year. License renewals have similar requirements, but a 3-hour course covering new information replaces the 8-hour initial training course.
Actions that Warrant a Claim.
A claim would prove valid if the dealer deliberately does not correctly record the terms of the transaction or if the vehicle is rebuilt, sell a vehicle with financing paperwork that doesn’t match the vehicle sold, or violate the loan or lease agreement on a vehicle.