An Oklahoma Motor Vehicle Department (MVD) bond is a surety bond required by the Oklahoma Tax Commission to obtain a motor vehicle dealer or broker license. The bond is a type of financial guarantee that helps protect buyers and the state from any negligence or fraudulent activity that the dealer or broker may commit. The MVD bond must be obtained through a surety bond provider, typically an insurance company. The bond amount is determined by the Tax Commission and is typically between $50,000 and $100,000. The bond must be renewed each year, and any claims against the bond must be paid in full. The bond is an important protection for buyers and the state, helping to ensure that auto dealers and brokers are operating ethically.
What is an Oklahoma Car Dealer Bond?
Oklahoma Car Dealer Bonds are required by the State of Oklahoma 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.
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 all other 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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Oklahoma MVD Bond Requirements and Information: