An applicant must furnish an Iowa motor vehicle dealer bond before the issuance of a motor vehicle dealer’s license to an principal engaged in the sale of vehicles for which a certificate of title is required.  Pursuant to state law IA Code 322.2, a “motor vehicle dealer is any person or entity “engaged in the business” of acquiring, selling, exchanging, holding, offering, displaying, brokering, accepting on consignment, conducting a retail auction, or acting as an agent for the purpose of doing any of those acts. An Iowa motor vehicle dealer bond and licensing is also require of a person selling at retail more than six motor vehicles during a twelve-month period, as the law presumes him or her to be engaged in the business of car sales. The surety bond must be executed by a corporate surety company licensed and qualified to do business in the state. It must run to the State of Iowa and written in the amount of fifty thousand dollars.  The Iowa motor vehicle dealer bond must be conditioned upon the faithful compliance by the dealer with all of the statutes of Iowa regulating or applicable to the business of a dealer in motor vehicles, and indemnify any person who buys a motor vehicle from the dealer from any loss or damage occasioned by the failure of the dealer to comply with any of the provisions of chapter 321 and 322.  The surety bond must guarantee that the dealer will furnish a proper and valid certificate of title to the motor vehicle involved in a transaction and indemnify any motor vehicle purchaser from any loss or damage caused by the failure of the dealer to comply with the odometer requirements in section 321.71.  The Iowa motor vehicle dealer bond must be filed with the Department of Transportation prior to any business activity.  Section (g) of §322.4 states clearly that, “The aggregate liability of the surety, however, shall not exceed the amount of the bond.”, however the bond form states, “The aggregate liability of the Surety of all persons shall not exceed the amount of the bond during any one license year. This surety bond shall be effective on the day of _________ , and shall operate as a new bond for each license year it is in effect.”  Given that courts interpret the language of bond forms strictly as written, it is prudent to assume that the Iowa motor vehicle dealer bond obligation is cumulative in nature.

Iowa surety leaderSurety One, Inc. offers motor vehicle dealer bonds in all states where they are required. Our special programs allow us to offer you surety support regardless of your credit and financial condition. Need to know the bond requirements for dealers in any state?  Click here for our MVD bond guide.  We also offer certificate of title bonds and lien release bonds which are sometimes needed in the course of your dealership operations.  Visit us at, call (787) 333-0222 or (800) 373-2804, or email us at for an Iowa motor vehicle dealer bond application or for information on any surety need.