Tennessee Motor Vehicle / Auto Dealer Bond Cost

While $50,000 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 Tennessee 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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Tennessee Motor Vehicle / Auto Dealer License and Renewal Guide

Everything You Need to Get Licensed and Bonded in Tennessee

If you're looking to become a licensed motor vehicle dealer in Tennessee, you're in the right place. At All American Bonds and Insurance, we specialize in helping new and used car dealers meet all bonding and insurance requirements to get licensed fast—including your $50,000 Tennessee Motor Vehicle Dealer Surety Bond and $500,000 Garage Liability Insurance.

✅ Who Needs a Tennessee Motor Vehicle Dealer License?

In Tennessee, anyone who sells more than 5 vehicles in a 12-month period is legally required to obtain a dealer license from the Tennessee Motor Vehicle Commission. This includes:

• New & used car dealers

• Mobility vehicle dealers

• Motorcycle & RV dealers

• Auto recyclers and dismantlers

• Vehicle auction operators

💼 Tennessee Dealer License Requirements – At a Glance

To obtain your dealer license in Tennessee, you must:

1. Establish a Business Location

   • Permanent facility with at least 288 sq. ft. of dedicated office space

   • Restroom, separate entrance, and visible business hours (at least 12 hrs/week)

   • Display area for 15 vehicles, with 3 customer parking spots

   • Landline phone posted and listed in directory (no cell phones)

2. Install Permanent Signage

   • At least 8-inch lettering

   • Must be visible from the road

   • No vinyl banners or temporary signs allowed

3. Obtain a $50,000 Surety Bond

   • Required by the Tennessee Motor Vehicle Commission

   • Must be in the exact business name and physical location address

   • Bond duration: 2 years

4. Get Garage Liability Insurance

   • Minimum $500,000 per occurrence

   • Must include the dealership’s physical address and DBA name (if applicable)

   • Certificate must list the Tennessee Motor Vehicle Commission as certificate holder

5. Register for Business & Sales Tax

   • Business Tax License from local city/county

   • Tennessee State Sales Tax Certificate or Exemption Letter

6. Financial Documentation

   • Compiled financial statement showing minimum $50,000 net worth

   • Background check for owner/operator

7. Zoning Compliance Letter

   • Must be obtained from your local zoning office

8. Photographs

   • Required of office, signage, display area, restrooms, and posted hours

9. Mobility Dealers

   • Must comply with all relevant federal vehicle modification regulations

10. Fees

• $400 Dealer License Fee (per line make)

• $35 Salesperson License Fee

• $400 Re-inspection Fee (if applicable)

🔐 Tennessee Dealer Bond – Fast, Affordable, and Guaranteed

All Tennessee motor vehicle dealers are required to post a $50,000 Surety Bond. This protects your customers and the state in case of unethical or illegal business practices.

At All American Bonds and Insurance, we provide:

✅ Fast quotes quotes
✅ Fast processing and digital delivery
✅ Best rates for all credit types
✅ Expert support from dealer bond specialists

👉 Apply now and get your bond issued quickly

🚗 Required Garage Liability Insurance

You’ll also need a Garage Liability Insurance Policy of at least $500,000 per occurrence to protect your dealership, customers, and property. We offer customized dealer insurance packages that meet state compliance and protect your business.

📝 How to Apply for Your Tennessee Dealer License

You can apply online through the CORE system or mail your completed application packet to:

Tennessee Motor Vehicle Commission
500 James Robertson Parkway
Nashville, TN 37243-1153
📞 Phone: (615) 741-2711

Pro Tip: Make sure all documents—including your surety bond and garage insurance—match your dealership’s legal name and physical address exactly.

🕒 How Long Does It Take?

Once your application and inspection are approved, licenses are typically issued within 2 weeks and mailed from a state facility.

💸 Tennessee Dealer License Renewal

Dealer licenses must be renewed every two years. You’ll need to submit:

• Updated Surety Bond (Continuation Certificate)

• Current Certificate of Garage Liability Insurance

• $400 renewal fee per line make

Renew online at: core.tn.gov

Why Choose Quickerbonds.com?

All American Bonds and Insurance, has helped thousands of auto dealers nationwide meet licensing requirements and protect their businesses.

✅ Competitive Rates for Surety Bonds & liability Insurance
✅ Same-Day Quotes & Approvals
✅ Licensed in All 50 States
✅ Expert Help with Applications & Paperwork

Get Started Today – Fast Tennessee Dealer Bond & Insurance Quotes

Ready to get licensed in Tennessee?
Click below to get a free quote for your required $50,000 Motor Vehicle Dealer Bond and Garage Liability Insurance.

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