North Dakota Motor Vehicle / Auto Dealer Bond Cost

While $25,000 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 North Dakota motor vehicle 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%.

North Dakota Motor Vehicle / Auto Dealer License and Renewal

Licensing, Insurance, Bond, and Title Requirements

Whether you're launching a dealership in North Dakota or you're an out-of-state dealer looking to operate within the state, this page outlines everything you need to get started and stay compliant—from licensing to insurance, bonding, and titling vehicles.

📋Who Needs a North Dakota Motor Vehicle Dealer Bond & What You Can Sell?

 

North Dakota offers several license types. Each one determines what types of vehicles you’re allowed to sell and qualifies you for the dealer resale tax exemption.

New Dealer License - New motor vehicles (with franchise), used vehicles, trailers (except travel trailers), motorcycles, UTVs, ATVs, mopeds, unconventional vehicles, snowmobiles, low-speed vehicles.

Used Dealer License - Used vehicles, trailers (except travel trailers), motorcycles, UTVs, ATVs, mopeds, unconventional vehicles, snowmobiles, low-speed vehicles.

Motor-Powered Recreational Dealer - UTVs, ATVs, mopeds, dirt bikes, snowmobiles, unconventional vehicles, motorcycles, low-speed vehicles.

Trailer Dealer License - All trailers (except travel trailers), low-speed vehicles

Motor Home License - Motor homes, mobile homes, manufactured homes, travel trailers (including horse trailers with living quarters), low-speed vehicles.

Low-Speed Vehicle Dealer - Low-speed vehicles only

Note: Please allow 4–6 weeks for dealer site inspection before license issuance.

What Is a North Dakota Auto Dealer Bond?

What the Bond Does:

• Ensures compliance with state laws and ethical business practices.

• Protects customers and the state from fraud or misrepresentation.

Bond Reminders:

• The bond must remain active and continuous.

• If the bond is cancelled, the dealer’s license will be suspended.

• Notify the Motor Vehicle Division (MVD) immediately if there are changes or cancellation.

👉 Need a North Dakota Surety Bond? Get your free quote now!

🛡️ North Dakota Dealer Insurance Requirements

To maintain a dealer license, you must carry a continuous liability insurance policy covering all aspects of your dealership operations.

Required Coverage Includes:

• General Liability

• Business Auto Liability

• Garage Liability (for sales, repairs, or service operations)

Important Notes:

• You must submit proof of insurance annually to the MVD.

• If insurance is cancelled or lapses, your dealer license and dealer plates will be automatically revoked.

• Failure to return the license/plates after a lapse can lead to legal penalties.

Need dealer insurance? We can help! Get a quick insurance quote →

Need Help with North Dakota Liability Insurance?

At All American Bonds and Insurance, we specialize in insuring licensed auto and powersports dealers in North Dakota. 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!

📝 Out-of-State Title Transfers & MCO Instructions

If you're titling a vehicle in North Dakota with an out-of-state title or Manufacturer’s Certificate of Origin (MCO), here’s what you need:

✔️ Required Documents:

• Out-of-State Title (signed by both seller and buyer)

• OR MCO (for new vehicles, completed by seller and buyer)

• Dealer Bill of Sale (if purchased from a dealer, showing names, purchase price, date, VIN, make & model)

• Odometer Disclosure (required if the vehicle is a 2011 or newer)

• Damage Disclosure Form (SFN 18609 — required if vehicle is less than 9 years old)

• Application for Title (SFN 2872, signed by buyer)

👤 Identification:

• Individuals: Copy of a valid driver’s license or ID card

• Non-residents/Military: Paper copy of out-of-state license or ID card

• Businesses/Trusts/Partnerships: Legal documentation of entity name

📦 Get Everything in One Place

We make the process easy for North Dakota dealers and out-of-state dealerships. Our bundled packages can help you:

✅ Get your Surety Bond
✅ Secure Garage Liability Insurance
✅ Understand Licensing Requirements
✅ Stay MVD Compliant Year-Round

👉 Start your application today!