Oklahoma 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 Oklahoma 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.

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• 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%.

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Oklahoma Used Motor Vehicle / Used Auto Dealer License and Renewal

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Who is required to be licensed?

The surety bond requirement applies to all used motor vehicle dealers in the state of Oklahoma. The bond requirement does not apply to Franchised dealers issued Franchised dealer license.

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What are the bonding requirements?

• Most dealers are required to obtain a $25,000 motor vehicle dealer surety bond, which is like an insurance policy for the dealer’s customers and is the only acceptable form of security. A separate bond is required for each other category that a dealer applies for. The surety bond is required for: Oklahoma Used Motor Vehicle Dealers - 25K Bond,  Oklahoma Wholesale Motor Vehicle Dealers - 25k Bond, Oklahoma Motor Vehicle Rebuilders - 15k Bond.

• The bond must be valid for the term of the license (2 years). The bond must begin on the first day of every even Numbered year, and expire on the last day of every odd numbered year. (for example, 1/1/2024 through 12/31/2025)

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What are the insurance recommendations?

It is required by the state of Oklahoma that all motor vehicle dealers in the state of Oklahoma obtain liability insurance coverage. Some examples include:

• $25,000 SINGLE LIMIT GARAGE LIABILITY INSURANCE 

• The Certificate of Insurance must be completed by your agent on the enclosed UD-7 form, and must reflect the ownership, business name and lot address as it appears on the initial application.

• Coverage, in accordance with the financial responsibility laws of the State of Oklahoma, shall be kept in force at all times with no lapse in coverage during the period of licensure. A lapse in coverage will result in automatic revocation of the license.

•  Secondary lot applicants may submit an amended certificate of insurance adding the secondary lot locations business name and lot address.

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