A Wisconsin Motor Vehicle Dealer (MVD) Bond is a type of surety bond required by the Wisconsin Department of Transportation in order to obtain a motor vehicle dealer license. The bond is a form of financial protection for consumers who purchase vehicles from licensed motor vehicle dealerships in the state, and it guarantees that the dealership will comply with all applicable state laws and regulations. The bond is intended to protect consumers from losses resulting from the dealership's failure to comply with the state’s laws and regulations, as well as any fraudulent activities. The bond amount is determined by the Wisconsin Department of Transportation, and the bond must be submitted to the Department prior to the issuance of the dealer license. The bond must remain in effect for as long as the dealership is authorized to operate in Wisconsin.
Wisconsin Car Dealer Bonds are required by Wisconsin'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.
The State requires a Car Dealer bond for each license you hold:
$50,000 surety bond for New and Used Motor Vehicle Dealers, Public Consignment Auction Dealers and for any other type of dealer
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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A $50,000 surety bond or irrevocable letter of credit. For a list of insurance companies accepting applications for bonds, see. Note: If you are selling only motorcycles, you need a $5,000 bond or letter of credit.
To qualify for a retail dealer license you must meet all of the following requirements: