Washington Auto Dealer Bonds
A $30,000 bond is required in the State of Washington for vehicle dealers, wholesale dealers, manufactured home dealers, and travel trailer dealers. There is also a $5,000 bond that is required for miscellaneous vehicle dealers. These are requirements put in place by the Washington State Department of Licensing. Click the Let’s Roll button below to begin the quick and easy application process.
Once the bond is purchased, an original bond will be created and sent both electronically and via mail to the dealer to issue with their inspector. The bond will be accompanied by the power of attorney which also needs to be on file with the State of Washington.
Cost of Motor Vehicle Dealer Bonds in Washington.
Jet has pricing as low as $240 for one year if paid in full, or $23 monthly. Dealership owner’s credit score, years in business, and license type are just a few of the factors looked at to determine the bond rate.
|Price Tier*||$30,000 Auto
|Monthly | Annual|
|Preferred||$23 | $240|
|Standard||$38 | $450|
|Credit Repair||$84 | $900|
*This table does not reflect all available price tiers for bonds in Washington. Rates are not guaranteed, as they are based on a soft credit check of the dealership owner.
How Long Does a Bond Last?
A surety bond is a precondition for receiving a dealer license in the State of Washington. Once the bond is operational, it will be valid until cancelled by the surety company or the full value of the bond is exhausted. A dealer’s license will be terminated without a bond in place.
Why Is a Bond Required?
As a business that deals with the public, there are certain precautions needed to protect the public from monetary loss. A surety bond will reimburse a car purchaser should any part of the transaction be misrepresented by the dealer, such as a “rolled back” odometer or a car that has been previously wrecked with no record of it.
If a purchaser has a complaint, they are able to fill out a complaint form with the Department of Licensing. If the complaint is valid, the bond company will cover the damages up to the full bond limit. This way, the customer gets reimbursed right away. However, the dealer still needs to repay the money that the bond company paid out.
Apply for the dealer bond below by clicking Apply Now. Jet works quickly to deliver the lowest price possible and makes sure the process is seamless.
|Washington Surety Bond Application|
|$30,000 Car Dealer Bond|
What Does a Dealer Need to Do If They Have Multiple Locations?
Any additional selling locations separate from a dealer’s primary selling location are called sub-agencies. Washington State does not limit the number of sub-agencies owned by a dealer. However, a separate bond needs to be filed for each location.
Bond Coverage Based on License Type.
Washington State has three different levels of coverage for bonds, depending on the type of vehicles being sold.
- Vehicle Dealer
- Vehicle Sub-agency
- Manufactured Home/Travel Trailer Dealer
- Manufactured Home/Travel Trailer Dealer Sub-agency
- Vessel Dealer
- Miscellaneous Vehicle Dealer
- Neighborhood electric vehicles
- Off-road vehicles
- Utility, boat, tent, and horse trailers
- Any vehicles other than motor vehicles, mobile homes, or travel trailers
- Miscellaneous Vehicle Dealer Sub-Agency