What is an Oklahoma Motor Vehicle Dealer Bond?
An auto dealer surety bond is a license requirement for used vehicle dealers the Oklahoma Motor Vehicle Commission requires before they will issue your license.
An auto dealer bond is a special type of insurance acting as a guarantee that a used Oklahoma dealer will follow all Oklahoma dealership regulations, laws, and serve their customers with honest business practices and ethics.
By purchasing an auto dealer bond, you're making this guarantee to the Oklahoma Motor Vehicle Commission and your customers.
Get a Free Quote for Your Oklahoma Motor Vehicle Dealer Bond Today
$25,000 Bond
Expires 12/31 in Odd-numbered Years
$25,000 Bond
Expires 12/31 in Odd-numbered Years
$50,000 Bond
Expires 12/31 in Odd-numbered Years
$15,000 Bond
Expires 12/31 in Odd-numbered Years
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Who Is Required To Purchase an Oklahoma Auto Dealer Bond?
Oklahoma requires the following dealer license types to purchase a surety bond before they will review your application.
Here’s a table highlighting each license type and the required bond amount:
| License Type | Bond Amount |
|---|---|
| Auto dealers | $25,000 |
| Auto dealer additional lot location | $25,000 |
| Wholesale dealers | $25,000 |
| Used motor vehicle dealer auctioneers | $50,000 |
| Motor vehicle rebuilders | $15,000 |
Keep in mind the city or township you’re opening your dealership may require an additional surety bond. You will have to check your specific requirements and then we’ll be able to help you purchase the correct bond.
Why is an Oklahoma Motor Vehicle Dealer Bond Required?
It's unfortunate, but there are dealerships in Oklahoma who will purposefully harm their customers to increase profits:
- Transferring a vehicle’s title incorrectly or failing to transfer the title
- Selling vehicles with a missing title
- Misrepresenting vehicle’s mileage, manufacture year, or condition to make a sale
- Stealing customer deposits
- Neglecting to pay the correct sales taxes to the Oklahoma Department of Revenue
One of the jobs of the Oklahoma Motor Vehicle Dealer Commission is to protect the Oklahoma public. This is why they require used dealers, wholesalers, and used vehicle auctioneers to obtain an official license to conduct business.
Part of this license process is purchasing a surety bond.
The surety bond is your commitment and guarantee that you will follow the rules and give your customers the best service.
How Much Does an Oklahoma Auto Dealer Bond Cost?
Each of the Oklahoma auto dealer bonds requires a quoted rate from a surety. The surety is the insurance company that writes surety bonds.
The surety will determine the rate based on:
- Primarily your personal credit
- Business industry and experience
- Prior bond claims from prior licenses if applicable
When you request your free quote above, we’ll work with our network of A-rated sureties and find you the lowest possible price.
Example prices from really good to average are:
| Bond Amount | Surety Bond Rate | Price You Pay |
|---|---|---|
| $25,000 | 0.5% | $125 |
| $25,000 | 1% | $250 |
| $25,000 | 2% | $500 |
| $25,000 | 3% | $750 |
| $25,000 | 4% | $1,000 |
| $25,000 | 5% | $1,250 |
But the only way to know your pricing is to request a free quote and get your pricing today.
Click here to start the quote process. Select the correct bond for your license and start your quote today and you can have exact pricing in one business day.
Once you receive your pricing, you’ll be able to make the right decision for your business and licensing timeline.
How Long Does The Oklahoma Auto Dealer Bond Last?
All Oklahoma dealer bonds have a bond term of 2 years.
Oklahoma is unique because the bond will expire with your dealer license on December 31st on odd numbered years. This means the price you pay to purchase your bond will be prorated to this expiration date.
Renewing your bond is easy.
Your bond specialist will contact you 30 to 45 days in advance to make sure the renewal premium is paid on time so your bond remains active.
Once you pay the renewal premium, you don't have to do anything else. Your bond is active and you can continue selling vehicles.
The Best Way To Purchase Your Oklahoma Dealer Bond
Surety Bonds Direct is a specialized surety agency. We work with multiple A-rated sureties for three reasons:
- One, to find you the lowest possible price on your dealer bond
- Two, to guarantee your bond will be accepted by the Oklahoma Motor Vehicle Commission
- Three, A-rated sureties have better claims departments and are unlikely to pay out frivolous claims against you
Getting a quote is free with no obligation to purchase. You can use our online quote request form to start the quote process. It takes 90 seconds to complete. A bond specialist will reach out to you when rates have been collected. This typically takes one business day or less.
You can also call 1-800-608-9950 and speak with a bond specialist directly to start the quoting process.
Once you have pricing and purchase your bond, it can be issued and emailed to you within one business day.
Motor Vehicle Dealer Bonds And Getting Your Oklahoma Business License/Registration
Read our blog post that will take you through the steps to get your Oklahoma auto dealer license.
At a high level, the steps are:
- Decide on your business entity and collect all the ownership information
- Enroll in a criminal background check
- Have every individual with ownership in the business entity fill out the personal history questionnaire
- Submit either a personal financial statement or a business financial statement
- Purchase the auto dealer license surety bond
- Purchase $25,000 garage liability insurance
- Compile with the correct sales office and signage requirements
- Meet the required education requirements
- Register all the necessary salespeople
- Complete your application and submit to the Oklahoma Motor Vehicle Commission
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