IDAHO
IDAHO VEHICLE OR VESSEL DEALER
Idaho Vehicle or Vessel Dealer Bond
Getting a Idaho motor vehicle dealer bond is a key step to becoming a licensed car dealer in the state. The vehicle or vessel dealer bond serves as an extra guarantee that your dealership will follow all rules and regulations that govern motor vehicle dealers in the state of Idaho.
Surety Bond Name: Idaho Vehicle or Vessel Dealer Bond
Surety Bond Amount: Retail Vehicle/Vessel Dealers: $20,000
Wholesale-Only Vehicle/Vessel Dealers: $40,000
Motorcycle/ATV/UTV/Snowmobile Dealers: $10,000
Obligee: The Idaho Department of Motor Vehicle Dealers
Just like all surety bonds, the Idaho vehicle or vessel dealer bond serves as protection for the general public, and not as insurance for your business. In case you don't follow the rules and your obligations under the bond, a claim can be made against you. If proven to be a legitimate claim, the penal sum of the bond is used to compensate the affected parties. The surety covers the costs of claims up front, which you’ll be required to reimburse in full. This means you should avoided having any claims, as they can cause serious harm to your business and finances.
Idaho Vehicle / Vessel Dealer Bond Cost
While $40,000, $20,000 or even $10,000 might seem like a large amount to pay, in reality, you only need to pay a percentage of it to get bonded, which is called the bond annual premium. The surety company will look at several factors to determine your Idaho vehicle or vessel dealer bond cost, most importantly, your credit score. Factors such as years licensed and years of industry experience will also play a factor in your dealer bond cost.
If your credit score is above 650, you’ll likely have to pay between .75% and 2% of the bond amount.
For applicants with credit scores between 600 and 649, the rates range between 2.5% and 4%.
Idaho Vehicle / Vessel Dealer License and Renewal
Who Needs a Idaho Vehicle or Vessel Dealer Bond?
✅ Dealer Activities That Require a License (and Bond):
You must be licensed — and bonded — if you engage in any of the following activities:
Sell, exchange, or consign 5 or more titled vehicles or vessels per calendar year, even if they are in your name
Sell or display for sale vehicles/vessels not titled in your name
Solicit vehicle/vessel sales on behalf of others
Sell from a location not legally owned or leased by you
Engage in any business customarily associated with being a vehicle dealer
🔒 Bond Amounts by Dealer Type:
Bonds must be issued by a corporate surety licensed in Idaho
Bonds must reflect exact ownership, DBA name, and dealership location
🛡️ Why the Bond Is Required
The Idaho Vehicle or Vessel Dealer Bond protects consumers and the state from:
Fraudulent dealer practices
Failure to pay taxes, fees, or title obligations
Violations of Idaho Code Title 49, Chapter 16
If a dealer violates the law, a claim can be filed against the bond to recover damages.
How to Apply for a Idaho Vehicle or Vessel Dealer License
✅ Step-by-Step Process to Apply for an Idaho Dealer License (All Types)
1. Choose the License Type
You must determine which type of license fits your dealership:
Retail Dealer
Wholesale-Only Dealer
Motorcycle, ATV, Snowmobile Dealer
Vessel Dealer
Truck Camper Dealer
2. Complete Required Education (If Applicable)
Used-only & wholesale-only dealers must:
Attend an 8-hour pre-licensing education course
Pass a closed-book written examFranchise dealers are exempt from this requirement
3. Secure a Business Location
Your dealership must meet these conditions:
Enclosed commercial building in a properly zoned area (zoning letter or official’s signature required)
Display area and signage
Cannot be part of a residence unless there's a separate entrance and it’s fully compliant
4. Register Your Business Name
File DBA (Doing Business As) with the Idaho Secretary of State, if applicable
5. Obtain an Idaho Seller’s Permit
Issued by the Idaho Tax Commission
Must be in the name of your dealership
Bond amounts vary by license type:
Get a vehicle or vessel dealer surety bond now!
8. Purchase Liability Insurance
Minimum coverage must be:
Get a dealer liability insurance quote now!
9. Complete the Application
Include personal history statements for all owners/officers
Ensure dealership name, location, and bond info match
All required signatures must be notarized
10. Schedule and Pass Inspection
After your application is submitted:
A Motor Vehicle Investigator will contact you to inspect your dealership location
You'll receive a 90-day temporary license
Permanent license is issued after a successful 90-day audit
11. Submit Your Application Packet
Need Help with a Dealer Bond or Garage Liability Insurance?
At All American Bonds and Insurance, we specialize in insuring licensed vehicle and vessel dealers in Idaho. Whether you're starting your first dealership or expanding operations, we’ll help you choose the right protection at a competitive rate.
✅ Fast quotes
✅ Low down payments
✅ Coverage that meets dealer board and lender requirements
📞 Call us at (844) 321-2663 or Get a Quote Now!
Whether applying for your first auto dealer license in Idaho, or renewing an existing one, you have to submit a dealer application form, together with all necessary documents that prove you meet the requirements.
When you renew your license, you’ll have to renew your Idaho auto dealer bond as well. As your business finances and personal credit score can change, make sure you work on improving those stats, so that you can reduce your surety bond cost over the years.
Common Bond Types: (Many others are available)
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