Washington Motor Vehicle Dealer, Manufacturer and Wrecker Bonds

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What is a Washington Motor Vehicle Dealer, Manufacturer or Wrecker Bond?

The Washington State Department of licensing has established surety bonding requirements for various businesses operating in the motor vehicle industry in the state. The specific surety bond amounts required by business type are as follows;

$30,000 Vehicle Dealer Bond for retail and wholesale businesses or auctioneers that sell new or used cars, trucks or motor homes
$40,000 Vehicle Manufacturer Bond for businesses that manufacture mobile homes
$20,000 Vehicle Manufacturer Bond for businesses that manufacture travel trailers
$5,000 Vessel Dealer Bond for businesses who sell at least 15 watercraft per year with retail value above $2,000
$5,000 Registered Tow Truck Operator Bond for tow truck operators
$1,000 Vehicle Wrecker Bond for vehicle wreckers

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Vehicle Dealer Bond

$30,000 Bond

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Vehicle Manufacturer Bond

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Vessel Dealer Bond

$5,000 Bond

1-Year Bond for $100.00 2-Year Bond for $175.00 3-Year Bond for $250.00

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Registered Tow Truck Operator Bond

$5,000 Bond

1-Year Bond for $100.00 2-Year Bond for $175.00 3-Year Bond for $250.00

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Vehicle Wrecker Bond

$1,000 Bond

1-Year Bond for $100.00 2-Year Bond for $175.00 3-Year Bond for $259.00

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Why is a Washington Vehicle Dealer Bond Required?

The vehicle dealer surety bond obligates the dealer, manufacturer, tow truck operator, or wrecker to comply with state laws and regulations. The bonded principal must refrain from fraud, or any fraudulent representation that results in monetary loss to a third party including a purchaser, seller, financing agency or governmental agency.

In the event of damages resulting from the dealer's non-compliance with bond terms, the surety is bound to cover losses for harmed parties up to the full penalty of the bond. Furthermore, the principal is obligated to indemnify the surety for any damages paid.

Additional Washington Vehicle Dealer Bond Resources & Links

Washington State Department of Licensing Business and Professional Licenses

Washington State Department of Licensing How to Get Your License: Motor vehicle dealer

Washington State Department of Licensing How to Get Your License: Manufactured home/travel trailer dealer

Vehicle/Vessel Dealer, Vehicle Manufacturer, Registered Tow Truck Operator, or Wrecker Business Bond Form

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