Georgia MVD Bond

What Is a Georgia Used Motor Vehicle Dealer Bond?

A Georgia Used Motor Vehicle Dealer Bond is a surety bond required for licensed used motor vehicle dealers in Georgia. The bond helps protect purchasers, vendees, and successors in title from certain losses caused by a dealer’s misrepresentation, deceptive practice, unfair practice, or breach of warranty involving a used motor vehicle.

The bond is not insurance for the dealer. It is a financial guarantee that the dealer will follow Georgia’s used motor vehicle dealer laws and licensing requirements. If a valid claim is paid by the surety company, the dealer is ultimately responsible for reimbursing the surety.

Georgia Dealer Bond Amount

The required bond amount for Georgia used motor vehicle dealers is now:

Georgia’s used motor vehicle parts dealer bond remains:

The bond is filed under Georgia’s used motor vehicle dealer licensing law, including O.C.G.A. § 43-47-8. The bond must be approved as to form and the solvency of the surety.

Who Requires the Georgia Dealer Bond?

The Georgia used motor vehicle dealer bond is required in connection with licensing through the Georgia State Board for the Registration of Used Motor Vehicle Dealers and Used Motor Vehicle Parts Dealers, under the Georgia Secretary of State.

Georgia Department of Revenue dealer registration and dealer plate requirements may also apply. However, the used motor vehicle dealer license and bond requirement are tied to Georgia’s used motor vehicle dealer licensing law.

Who Needs a Georgia Used Motor Vehicle Dealer License?

In Georgia, a used motor vehicle dealer license is generally required if you sell vehicles with the intent to make a profit. Selling vehicles online can still require a used motor vehicle dealer license if you are operating as a dealer. Dealers must also meet established place of business requirements and maintain required bond and insurance coverage.

A license is not required simply to repossess vehicles. However, if a business begins buying and selling repossessed vehicles for profit, a used motor vehicle dealer license may be required.

How Does a Georgia Dealer Bond Work?

A Georgia dealer bond involves three parties:

• Principal: The used motor vehicle dealer required to obtain the bond.
• Obligee: The licensing authority requiring the bond.
• Surety: The company that issues the bond and guarantees the dealer’s compliance with the bond obligation.

If the dealer violates applicable requirements and a valid claim is made, the surety may pay the claim up to the bond amount. The dealer must then reimburse the surety for any claim payment and related costs.

What Can a Georgia Dealer Bond Protect Against?

A Georgia used motor vehicle dealer bond may respond to certain losses caused by improper dealer conduct, including:

• Misrepresentation involving a used vehicle
• Deceptive or unfair dealer practices
• Breach of warranty involving a used vehicle
• Failure to properly handle title or ownership obligations
• Failure to comply with Georgia used motor vehicle dealer laws
• Other conduct that violates the bond obligation under Georgia law

The bond is intended to protect the public. It does not protect the dealer from its own liability.

Georgia Dealer Bond Renewal

Georgia used motor vehicle dealer licenses renew every two years. The renewal period begins on July 1 and ends on September 30 of even-numbered years.

Because the bond amount has increased to $50,000, dealers should review their bond before renewal to make sure the amount, business name, license information, and bond term are correct.

Before renewing, dealers should confirm:

• The bond is issued in the correct $50,000 amount
• The legal business name matches the dealer license
• The bond is written for the correct licensed location
• The surety company is authorized to issue bonds in Georgia
• The bond runs concurrently with the licensing period
• Required insurance coverage is active and matches the license information

Georgia Dealer Bond and Insurance Requirements

Georgia dealer applicants must provide a surety bond and proof of required insurance as part of a complete application. Dealers should make sure the business name, licensed location, and policy information match their license filing.

A dealer bond and dealer insurance are not the same. The bond protects the public if the dealer violates certain legal obligations. Insurance protects the dealer against covered business risks, depending on the policy.

Georgia Dealer Licensing and DOR Dealer Registration

Used motor vehicle dealer licensing is handled through the Georgia Secretary of State licensing process. Separately, dealers, distributors, and manufacturers may complete dealer registration and plate renewal tasks through Georgia DRIVES e-Services with the Georgia Department of Revenue.

Common Georgia dealer-related forms may include:

• Motor Vehicle Affidavit for Citizenship Verification
• MV-6 Dealer, Distributor & Manufacturer License Plate Application
• MV-6C Dealer, Distributor, Manufacturer & Transporter Renewal Application
• Other Department of Revenue dealer forms, depending on the transaction

Dealers should confirm whether they are completing a Secretary of State license filing, a Department of Revenue dealer registration or plate transaction, or both.

How Much Does a Georgia $50,000 Dealer Bond Cost?

The required bond amount is $50,000, but dealers do not usually pay the full bond amount as the premium. The cost is typically a percentage of the bond amount.

The price may depend on:

• Personal credit
• Business history
• Dealer experience
• Prior bond claims
• Financial strength
• Surety underwriting guidelines

Many qualified dealers can obtain a Georgia dealer bond at a preferred rate. Dealers with credit issues, prior claims, or other underwriting concerns may pay more.

Final Thoughts

The Georgia used motor vehicle dealer bond is an important licensing requirement for dealers operating in the state. With the required bond amount now increased to $50,000, dealers should review their renewal requirements early and make sure their bond, insurance, business name, and license information are accurate before the renewal deadline.

A properly issued Georgia dealer bond helps satisfy state licensing requirements, protects the public, and allows your dealership to continue operating without unnecessary renewal delays.