A North Carolina Motor Vehicle Division (MVD) Bond is a type of surety bond required by the NC Division of Motor Vehicles. It is required when a business applies for a license or permit to operate a motor vehicle business in the state. The bond guarantees payment of all taxes, fees, and penalties that arise from the licensee's activities and failure to comply with applicable laws and regulations. The bond also guarantees that the licensee will pay for all losses, damages, and expenses that arise from the licensee's activities. The minimum amount of the bond is $10,000 and the maximum amount is determined by the NC Department of Revenue. The bond must be renewed annually.
North Carolina Car Dealer Bonds are required by North Carolina's DMV to obtain your Dealer license. The MVD Bond amount for the sale of New and used vehicles is set at $50,000. 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.
$50,000 surety bond for New and Used Motor Vehicle Dealers, Public Consignment Auction Dealers and all other car dealers
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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1. Affidavit of Facts (Form MVR-92H) must be completed in
full detail. Any omissions or incomplete answers could result in a delay or
denial in the issuance of a title by bond. This form must be signed in the
presence of a notary. Any evidence of ownership must be attached to the
MVR-92H. If there is a lien on the vehicle, lien release must be attached. This
form must be completed prior to Step #2.
2. The vehicle must be inspected by a NCDMV License &
Theft Bureau Inspector. The inspector will provide a report of inspection
(LT-270). If the vehicle is not in operable condition at the time of inspection
then an Inoperable Title will be issued and no registration will be issued
until the vehicle has been deemed operable by a NCDMV License & Theft
3. The value of motor vehicles is determined from the
current Value Schedule, which can be obtained from any license plate agency or
by calling the NCDMV Customer Contact Center (919-715-7000). For mobile homes
and vehicles not listed in the Value Schedule, two appraisals from North
Carolina dealers will be required. The appraisals must be on the dealer’s
letterhead and must be submitted with the bond. The bond must be for one and one-half
(1½) times the highest appraisal.
4. An Indemnity Bond written by an insurance company
licensed to write Surety Bonds in North Carolina. The bond must be for one and
one-half (1½) times the value of the vehicle as shown in the Value Schedule
provided by the Division and must be for a minimum of $100.00. The bond must be
signed and witnessed on reverse side by the bonding company and applicant.
Power of Attorney from the bonding company must be attached. No alterations are
allowed on the bond. The bond must remain on file with the Division for a
period of three years. Upon issuance of said new certificate of title, the said
bond shall become effective and remain in full force and effect until
surrendered by the State of North Carolina, Division of Motor Vehicles, as
provided in Section 76 of Chapter 20 of the General Statues of North Carolina.
5. Application for title (Form MVR-1) completed in full and
signed in the presence of a notary. The name on the MVR-1 must be identical to
the name listed on the Indemnity Bond and the Inspector’s Report (LT-270). The
VIN (See Note 1), vehicle year, make and body style (See Note 2) on the MVR-1
must be identical to the Indemnity Bond and the Inspector’s Report (LT-270).
6. Title Fee and Highway Use Tax is due at time of titling vehicle.