An Idaho MVD bond, also known as a Motor Vehicle Dealer bond, is a type of surety bond that is required by the Idaho Transportation Department 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 Idaho 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 an Idaho Car Dealer Bond?
Idaho Car Dealer Bonds are required by The Motor Vehicle Department "MVD" to obtain your Dealer license. The MVD Bond amount for the sale of New and used vehicles is set at $20,000. The Auto Dealer bond ensures that the principal shall comply with the conditions of any contract made by such licensee in connection with the sale or exchange of any motor vehicle and shall not violate any of the provisions of law relating to the conduct of the business for which it is licensed.
The State requires a Car Dealer bond for each license you hold:
-$40,000 Wholesale Dealer Bonds
-$20,000 for Retail Dealer Bonds
-$10,000 for only motorcycles, ATV's, UTV's and snowmobiles
Different parts of a bond:
There are 3 parts to a MVD surety bond. The Principal "YOU", The Surety Company, and the Obligee. The Principal is the business or individual applying for the MVD Surety Bond. The Obligee is the individual or entity requiring the Surety Bond and the Surety Company is the company who provides the Surety Bond coverage.
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Idaho MVD Bond Information and Requirements:
Upon initial application, Idaho Code requires all vehicle/vessel dealers to file a performance bond with the department. The bond shall be in the amount of $20,000 for all retail dealers, $40,000 for all wholesale-only dealers (effective July 1, 2015), and $10,000 for motorcycle, all-terrain vehicle, utility type vehicle, truck campers, and snow machine dealers. All bonds must be issued by a corporate surety licensed to do business within the state of Idaho. A bond may also be posted in the form of cash or a certificate of deposit, which remains on deposit until five years after the dealership has gone out of business. The bond must reflect the exact ownership, D.B.A.s, and dealership location that is listed on the application for dealer license.