Connecticut Motor Vehicle Dealer Surety Bond
A Connecticut motor vehicle dealer surety bond is a required license bond for any person or business engaged in the sale, repair, or leasing of motor vehicles within the State of Connecticut. The Connecticut Department of Motor Vehicles (DMV), Dealers & Repairers Unit requires all dealer, repairer, and leasing company license applicants to post a surety bond. The bond amount for motor vehicle dealers is $60,000 (increased from $50,000 effective July 1, 2022). Surety One, Inc. offers quick, no-hassle underwriting for Connecticut motor vehicle dealer bonds, including options for new applicants and those with challenged credit.
Bond Amount & Requirements
Connecticut General Statutes Chapter 246, Section 14-52 (and Section 14-15 for repairers) requires all dealer, repairer, and leasing license applicants to file a surety bond satisfactory to the Commissioner of Motor Vehicles. The bond must be filed using Form K-158 (Surety Bond — Motor Vehicle: Dealer, Repairer/Limited Repairer, or Leasing/Renting Co.) and is bound to the State of Connecticut.
| Bond Amount | License Type | Description |
|---|---|---|
| $60,000 | Motor Vehicle Dealer (New) | Franchise dealer selling new and used motor vehicles |
| $60,000 | Motor Vehicle Dealer (Used) | Sells used motor vehicles to the public |
| $25,000 | Motor Vehicle General Repairer | Provides general motor vehicle repair services |
| $25,000 | Vehicle Recycler | Recycles, dismantles, or salvages motor vehicles |
| $25,000 | Low Speed Vehicle Dealer | Sells low-speed vehicles (LSVs/NEVs) |
| $15,000 | Leasing / Rental Company | Leases or rents motor vehicles to the public |
| $10,000 | Limited Repairer | Provides limited/specialty motor vehicle repair services |
| $10,000 | Automobile Club Association | Operates automobile club membership services |
| $5,000 | Registration Issuance Bond | Additional bond for dealers who issue vehicle registration on behalf of DMV |
Important — Local Public Hearing Required: Connecticut is one of the only states that requires a local public hearing before a dealer license can be issued. Applicants must submit their application to local authorities, who will schedule a public hearing. The proposed business must be advertised in a local newspaper at least twice within the week prior to the hearing. The applicant bears the cost of advertising and the hearing. This process is unique to Connecticut and can add several weeks to the licensing timeline.
Who Needs This Bond?
Connecticut requires licensing for anyone involved in the sale, repair, or leasing of motor vehicles. It is illegal to sell motor vehicles to consumers in Connecticut without a valid state-issued dealer license, including selling with an out-of-state license.
- New (franchise) motor vehicle dealers — $60,000 bond
- Used motor vehicle dealers — $60,000 bond
- Motor vehicle general repairers — $25,000 bond
- Motor vehicle limited repairers — $10,000 bond
- Vehicle recyclers — $25,000 bond
- Low speed vehicle dealers — $25,000 bond
- Motor vehicle leasing/rental companies — $15,000 bond
- Automobile club associations — $10,000 bond
- Dealers issuing registration — additional $5,000 Registration Issuance Bond
How Much Does the Bond Cost?
The cost of a Connecticut motor vehicle dealer surety bond (the “premium”) is a small percentage of the required bond amount. Your exact premium is determined by underwriting factors including your personal credit score, business financial strength, industry experience, and claims history. Surety One, Inc. offers competitive rates for all credit profiles. Quoting is free of charge with no obligation to purchase.
Connecticut Dealer License Requirements
In addition to the surety bond, the Connecticut DMV Dealers & Repairers Unit requires the following:
- Completed dealer license application submitted to local authorities for public hearing approval
- Local newspaper advertising of the proposed business (minimum two publications within one week of the hearing)
- Payment of license fees, advertising costs, and hearing examination fees
- Business entity documentation (LLC, corporation, or sole proprietorship)
- Zoning approval letter from local authorities
- Department of Energy and Environmental Protection (DEEP) approval
- Survey map of the proposed business location
- Location public safety evaluation
- Continuous liability insurance certificate
- Personal history/background information
- Properly completed sales forms, invoices, and federal odometer statements
- VIN etching and component parts marking compliance
- Minimum required display/repair space at the business facility
- On-site DMV inspection of the business location
Filing, Renewal & Cancellation
The surety bond (Form K-158) must be filed with the DMV Dealers & Repairers Unit in Wethersfield. After the local hearing, application review, and on-site inspection, the DMV will issue the license and dealer plates. Dealer and repairer licenses expire 12 months after the month of issuance. The bond remains in force until canceled; however, annual premium payments are required to maintain it. Written notice must be provided to the DMV prior to any bond cancellation date.
Bond Claims
A claim against the Connecticut motor vehicle dealer surety bond may be filed if the dealer violates related state or federal regulations. Claims are paid as required by the Commissioner of Motor Vehicles up to the full bond amount. Failure to maintain the bond or insurance can result in suspension or revocation of the dealer license and dealer plates.
Connecticut Department of Motor Vehicles
Dealers & Repairers Unit
60 State Street, Room 102
Wethersfield, CT 06161-2011
Phone: (860) 263-5405
Email: DMV.DR@ct.gov
Web: portal.ct.gov/dmv
Surety One, Inc. is the Connecticut surety bond expert provider, licensed in all fifty states, U.S. territories, and Canada. We offer competitive rates and excellent customer service for Connecticut motor vehicle dealer bonds, repairer bonds, leasing bonds, and all other license bond classes. Need help meeting your DMV licensing requirements? Call us at (800) 373-2804, email us at Underwriting@SuretyOne.com, or click here to chat with a live underwriter (no bots!) for immediate assistance. We’re here to support your business success.
Surety bond application review and quoting are free of charge. There is no obligation to purchase.
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