Georgia MVD Bond

Georgia MVD Bond


Georgia Dealer Bond




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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


                      How Much Does a Georgia MVD Bond Cost?

                      You can usually expect to pay .750% to 10% of the bonding capacity to secure a MVD bond. Because the bonding capacity in Georgia is $35,000, your bond premium will likely range from about $262 to $3,500. 


                      The type of dealership you run and your annual sales volume can affect how much you need to pay to secure a Georgia MVD bond. The higher your credit score is and the more business experience you have can lead to a lower premium. 


                      Learn more about what a Georgia motor vehicle dealer bond will cost you today!


                      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

                      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


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