Utah MVD Bond

Utah MVD Bond

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A Utah MVD bond is a surety bond that provides the Utah Motor Vehicle Division (MVD) with a financial guarantee that a motor vehicle dealer will comply with all applicable Utah motor vehicle laws and regulations. The bond protects the states consumers from potential losses caused by the dealers failure to comply with state law or regulations. The bond amount typically ranges from $25,000 to $50,000 and must be purchased from an insurance company or bonding agency. The bond is in effect for one year and must be renewed annually. The MVD can suspend the dealers license if the bond is not in place.

What is an Utah Car Dealer Bond? 

Utah Car Dealer Bonds are required by the People of the State of Utah to obtain your Dealer license. The MVD Bond amount for the sale of New and used vehicles is set at $75,000.  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:  

$75,000 surety bond for New and Used Motor Vehicle Dealers, Public Consignment Auction Dealers and for any other types of dealer

$10,000 surety bond for motor vehicle inspection station

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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You can buy your Utah Car Dealer bond (Apply) online immediately

Utah MVD Bond Information and Requirements:

Dealers must file a corporate surety dealer bond with MVED.

  • New or used motor vehicle or large trailer dealers — $75,000
  • Motorcycle or small trailer dealers — $10,000         
Small trailers are trailers between 750-1,999 lbs. unladed weight.

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