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Summary

A Georgia MVD bond, also known as a Motor Vehicle Dealer bond, is a type of surety bond that is required by the Georgia Department of Revenue, Motor Vehicle Division for individuals or businesses that want to obtain or renew a motor vehicle dealer license. The bond serves as a form of protection for customers against any fraudulent or unethical practices by the motor vehicle dealer. If a dealer engages in such practices, a customer may file a claim against the bond to seek compensation for any resulting damages. The bond amount required by the Georgia MVD may vary based on the type of license and the dealer's history, and the bond must be renewed periodically to maintain the dealer's license.

What is a Georgia Motor Vehicle Bond?

Before getting started, it’s worth noting that motor vehicle dealer bonds can be referred to as MVD bonds, auto dealer bonds, car dealer bonds, used car dealer bonds, dealer bonds, DMV bonds, bonds for dealer’s license, and motor vehicle bonds. 

Many different states require MVD bonds, including the great state of Georgia. A MVD bond is a surety bond legally required to help ensure that automotive dealers remain legally compliant and to keep the public safe from harmful dealership practices. Having a MVD bond helps businesses signal to their customers and business partners that they are safe to work with as they are properly licensed and following the law.

As most surety bonds do, Georgia MVD bonds involve three different parties:

• Principal. The automotive dealer that must take out the bond. 

• Obligee. The party requiring the dealer to obtain the bond—usually this is a government agency.

• Surety. The company that issues the motor vehicle surety bond and guarantees to the obligee that the principal will comply with all bond requirements.

A Georgia MVD bond is designed to protect the public from the following bad business practices. 

• Misrepresenting the condition of the vehicle

• Falsifying or omitting details on the repair or accident history of the vehicle

• Issuing a fraudulent certificate of title

• Failing to pay the required motor vehicle fees such as title and registration

• Selling a car that is clear of the prior owner’s interest and liens

• Not following required tax laws

• Selling a stolen vehicle

• Not fulfilling a warranty

• Not reporting the sale of a vehicle

It’s important to not confuse a surety bond with an insurance policy. The principal is still financially liable for claim-related losses and damages, even though the surety will initially pay out any claims. 

The State requires a Car Dealer bond for each license you hold:  

$35,000 - Used and New Car Dealer Bond.  The Georgia Board of Registration of Motor Vehicle Dealers has recently amended the required expiration date from March 31 of every even year to September 30 of every even year. 

$10,000 - auto parts dealer bonds expire on December 31 of odd number years

Georgia MVD Bond Requirements and Information:

Licensing Requirements: 

Using DRIVES e-Services, you will need the following information for the dealer pre-registration process:

• Georgia driver’s license or Georgia ID card
• Legal name of business or name of DBA entity
• Georgia business license number
• Publicly listed business phone number(s)

  
Required Documents

• Completed Form MV-6 Dealer, Distributor and Manufacturer License Plate Application.
• Completed Form MV-6A Dealer, Distributor, Manufacturer and Transporter Authorized/Add/Delete Agents Application.
• Completed MV-6C Dealer, Distributor, Manufacturer and Transporter Renewal Application.
• A photocopy of your Georgia business license or Georgia occupational license.
• Proof of publicly listed telephone number(s) in Georgia. Note: Cell phone numbers are not accepted.
• Photocopy of proof of your State of Georgia Tax ID number.
• Photocopy of Form ST2 Georgia Sales Tax Certificate (DOR/Sales & Use Tax Division 1-877-423-6711)
• Photocopy of each authorized agent or representative’s Georgia Driver’s License or ID card.
• Completed Motor Vehicle Affidavit for Citizenship Verification.
• A completed MV-6B Dealer, Distributor, Manufacturer, & Transporter Application for Additional Tags when applying for more than two additional license plates, certifying the number of vehicles sold during the previous calendar year. When recording the number, the “Actual Number” box must be checked. Only three license plates (one master and two additional) will be issued without showing the number of vehicles sold in the previous year on Form MV-6B.
• Photographs of signs, sales rooms or offices, and the car lot to validate an established place of business in Georgia.
• Check or money order for the total fees payable to the Department of Revenue

o    $62 master license plate fee.

o    $12 for each additional license plate requested.

o    If a franchise (new) motor vehicle dealer, a $25 annual franchise fee.

Submit in-person or at the drop off box:

DOR/Motor Vehicle Division
Attn: Business Registration Unit
4125 Welcome All Road
Atlanta, Georgia 30349

Submit by mail:

DOR/Motor Vehicle Division
Attn: Business Registration Unit
P.O. Box 740382
Atlanta, Georgia 30374-0382