What is an Ohio Car Dealer Bond?
Ohio Car Dealer Bonds are required by Ohio's BMV 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 and for all types of 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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Ohio MVD Bond Requirements and Information:
A used motor vehicle dealer, as required in section 4501:1-3-11 of the Ohio Administrative Code (OAC), shall post with the Attorney General’s Office in favor of this state, a surety bond in the amount of twenty five thousand dollars ($25,000).
The surety bond is used solely for the purpose of replenishing funds that have been distributed from the Title Defect Rescission (TDR) fund to compensate retail purchasers of the said dealership.
No license will be issued if a surety bond has not been secured meeting the requirements below. Proof that a surety bond has been secured must be submitted with the application.
The surety bond requirements:
The original bond MUST be sent to the Attorney General's Office (address below) before the license may be issued. The original bond will be retained by the Attorney General's Office and will not be returned. Any changes to the surety bond, notifications of renewal, or cancellations MUST be reported to the Attorney General's Office.
Consumer Protection Section
Attn: TDRF Unit Surety Bond
30 E. Broad Street, 14th Floor
Columbus, OH 43215
Any used motor vehicle dealer that fails to retain a valid bond at any time during the duration of the license, will be immediately referred to the Motor Vehicle Dealers Board for possible suspension or revocation of the license.