Wyoming MVD Bond

Summary

A Wyoming Motor Vehicle Division (MVD) bond is a type of surety bond required for certain businesses operating in the state of Wyoming. This bond guarantees that the business will fulfill its obligations under Wyoming MVD regulations and the Motor Vehicle Act of Wyoming. If a business fails to comply with these regulations and requirements, the bond provides a safeguard for customers and other parties who suffer losses due to the business's non-compliance. The bond is required as a condition of the business's registration and must be maintained at all times. The bond amount is determined by the Wyoming MVD, and it is the business's responsibility to ensure the bond is kept in full force and effect.

What Is a Wyoming Dealer Bond?

Wyoming Car Dealer Bonds are required by Wyoming's DOT in order to obtain a 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 will comply with the conditions of any contract made in connection with the sale or exchange of a motor vehicle and will not violate any 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 any other type of dealer.

The Different Parts of a Bond

There are three parts to an 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 that provides the surety bond coverage.

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Program

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

Wyoming MVD Bond Information and Requirements:

• Any person engaged in the business of selling or exchanging three or more vehicles in Wyoming in any consecutive 12-month period is required to obtain a Wyoming Vehicle Dealer License (W.S. 31-16-103).
• You must submit an application to WYDOT before commencing business, and annually thereafter, in order to engage in the business of a vehicle dealer in Wyoming.
• Each year, a Wyoming vehicle dealer must submit a $25,000 surety bond, on a form prescribed by WYDOT, with the license application. NEW APPLICANTS: Do not have the surety bond executed until you have been notified that your license application has been approved.

All new applicants must undergo a criminal background investigation, including fingerprinting, before a Wyoming Vehicle Dealer License will be issued.

Application Instructions for Wyoming Vehicle Dealers

1. All vehicle dealers must complete form MV-422, Vehicle Dealer and Manufacturer Application. New vehicle dealers must also attach copies of franchise papers or dealer sales and service agreements for all new vehicles they will be selling, and complete the new vehicle information at the bottom of page 3.

2. Wyoming-based manufacturers must complete steps 1 through 3 and 5 through 8 on the MV-422 Vehicle Dealer and Manufacturer Application. Written approval from the city or county stating that vehicles may be manufactured at the established location is required, along with photos of the business location.

3. Check the application thoroughly before submitting it to the department. Applications will be returned if any information is blank, insufficient, or incorrect. Some sections of the application require attachments (photos, lease copies, etc.) — be sure these are included. The application must be signed and dated on page 4, step 7.

4. Applicants must have a Wyoming Sales and Use Tax License. Contact the Wyoming Department of Revenue to obtain this license.

5. The annual application fee for a vehicle dealer or Wyoming-based manufacturer's license must accompany the application, with the check made payable to the Wyoming Department of Transportation. See page 4, step 6, for applicable fees.

6. Applicants must file with the department a $25,000 bond, issued by a corporate surety duly licensed to do business in Wyoming, using the bond form provided in your packet. Provide this bond form to your insurance company. NEW APPLICANTS: Do not have the bond executed until the department has notified you that your application has been approved.

7. New applicants, excluding financial institutions and repossession companies, must undergo a state and national criminal history background check, including completing the background check questionnaire and submitting state and national fingerprint cards with the license application. Fingerprint cards must be obtained from WYDOT. Criminal history record information may take a minimum of 30 days to process, and a license will not be issued until that information is received, reviewed, and the application is approved by the department.

8. The vehicle dealer or Wyoming-based manufacturer's license is valid for one year. The effective and expiration dates of the license will correspond to those of the bond posted. The license must be renewed before the expiration date of the previous year's license.

All vehicle dealers and Wyoming-based manufacturers will be provided with copies of the applicable statutes, rules, and regulations with their license, or upon request to the department. Applicants are responsible for reading and understanding the laws, rules, and regulations that apply to their dealership or manufacturing business.