New Hampshire MVD Bond

New Hampshire MVD Bond

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A New Hampshire Motor Vehicle Department (MVD) bond is a type of surety bond required by the state of New Hampshire to protect any person or business conducting business involving motor vehicle transactions. The bond ensures that the bonded party will comply with all applicable laws and regulations relating to motor vehicle transactions, and if they fail to do so, the bond will provide financial protection for any damages, losses, or claims resulting from the bonded party's breach of their obligations. The bond is a guarantee of safety and security for consumers and the state. The bond amount for the New Hampshire MVD bond is set at $10,000. To obtain a New Hampshire MVD bond, an individual or business must provide a surety company with a completed application, a copy of the business license, a copy of the application for registration, and the applicable fees. Once approved, the bond must be kept in effect for the entire time the license is valid.

What is an New Hampshire Car Dealer Bond? 

New Hampshire Car Dealer Bonds are required by the Director of the DMV to obtain your Dealer license. The MVD Bond amount for the sale of New and used vehicles is set at $25,000.  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:  

$25,000 surety bond for New and Used Motor Vehicle Dealers, Public Consignment Auction Dealers

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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New Hampshire MVD Bond Requirements and Information:

A Retail Dealer License is for any person engaged in the motor vehicle business who sells five (5) or more motor vehicles at retail to the general public in a 12 month period, with an established place of business within this state.


  1. Retail Vehicle License is $125 due at the time of Application for Retail Dealer License and Registration (additional fees will be assessed upon approval).
  2. Surety Bond of $25,000 in the business name and business legal address.
  3. Approval from local & state authorities.
  4. Established place of business.
  5. Regular business hours 37½ hours per week.
  6. Original service agreement with an approved New Hampshire Inspection Station, if you do not have your own.
  7. Original Criminal Background check from New Hampshire (out-of-state residents must provide a Criminal background check from their home state, as well as from New Hampshire).

Location Requirements:

  1. Permanent physical structure that has at least 750 square feet or is primarily dedicated to the business of selling.
  2. Signage must be visible from a public way with 10 inch letters.
  3. Single business location - requiring Registration Certificate.
  4. Permanent heating system.
  5. Only dirt floors are acceptable for heavy equipment and farm equipment.
  6. Electrical outlets as stated in state code.


  1. Plates may be displayed on the rear of a vehicle which is owned by the dealership and for sale or a consignment vehicle as long as there is a notarized consignment agreement on the premises.
  2. These vehicles are not exempt from inspection unless they have a certificate of origin.
  3. For demonstration – there shall be no obstruction in the windshield due to advertising etc. while the vehicle is being demonstrated.
  4. Personal use is permitted by the dealer owner and family domiciled at the owner's home.
  5. Full-time employees (employed at 37½ hours a week), at the discretion of the owner, may have personal use of a vehicle with a dealer plate. Employee's family members do not have use of the vehicle. Contract employees are not considered full-time employees. Vehicles must display all legally required stickers.
  6. Dealer plates may be used on wreckers, ramp trucks and service trucks if they are clearly marked, in 3 inch letters, Not For Hire (parts trucks are not permitted).
  7. Only vehicles owned by the dealership and have a valid NH inspection sticker may have the dealer plate attached.
  8. Loaning of plates is prohibited.

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