District of Columbia Motor Vehicle Dealer Surety Bond

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Bond Penalty: $25,000

A District of Columbia motor vehicle dealer surety bond is a required bond for any person or business engaged in the sale of new or used motor vehicles within Washington, D.C. The District uses a dual-agency licensing process: dealers must first obtain a Basic Business License from the Department of Licensing and Consumer Protection (DLCP) (formerly DCRA), then register as a dealer with the DC Department of Motor Vehicles (DMV). A $25,000 surety bond is required for the 2-year license term. Surety One, Inc. offers quick, no-hassle underwriting for District of Columbia motor vehicle dealer bonds.

Bond Amount & Requirements

Code of the District of Columbia §50-603 requires all automobile dealer license applicants to file a $25,000 surety bond. The bond obligates dealers to observe and comply with all laws and regulations of the District of Columbia relating to the motor vehicle dealer business, and with all rules, regulations, and orders of the Department of Licensing and Consumer Protection.

Bond Amount	License Type	Description
$25,000	New Motor Vehicle Dealer	Sells new and used motor vehicles (franchise)
$25,000	Used Motor Vehicle Dealer	Sells used motor vehicles only

Important — Dual-Agency Process, 2-Year Term & Clean Hands: D.C.’s dealer licensing is uniquely split between two agencies: the DLCP issues the Basic Business License (with bond), and the DMV issues the Registered Dealer status (with plates). The bond is posted for the 2-year license period. A cash bond may be posted as an alternative to a surety bond. D.C. requires a “Clean Hands” Self-Certification confirming you don’t owe more than $100 to the D.C. government. Licenses expire October 31st every other year. A Metropolitan Police criminal history report (Form PD-70) is required for all applicants.

Who Needs This Bond?

The District of Columbia considers any person or business who sells or deals in new or used motor vehicles to be a motor vehicle dealer subject to licensing and bonding. D.C. has two dealer license categories:

New car dealership — sells new and used vehicles (franchise required) — $25,000 bond
Used car dealership — sells used vehicles only — $25,000 bond

How Much Does the Bond Cost?

The cost is a small percentage of the $25,000 bond amount, determined by credit, financials, and experience. Surety One, Inc. offers competitive rates for all credit profiles. Quoting is free of charge with no obligation to purchase.

D.C. Dealer License Requirements

Step 1 — DLCP Basic Business License (Motor Vehicle Dealer)

Register business with the DLCP Corporate Division
Completed Basic Business License Application
$25,000 surety bond or cash bond posted with the DLCP
Clean Hands Self-Certification (certifying no more than $100 owed to D.C. government)
Metropolitan Police Criminal History Report (Form PD-70)
Motor Vehicle Salesperson Designation Letter with at least one salesperson application
Sample copies of car order and bill of sale
Certificate of Occupancy from the Office of Zoning (DCOZ) — contact (202) 442-4576 for zoning review
Land plat from an approved D.C. surveyor (if outdoor facilities)
Federal Employer Identification Number (FEIN)
Certified Letter of Authorization (if applicable)
Corporate registration (if corporation, LLC, partnership, or trust)
Total fee: $556.60 (category license $411 + application $70 + endorsement $25 + other fees)

Step 2 — DC DMV Registered Dealer

Completed DC DMV Dealership Application (notarized)
Original Basic Business License
Each salesperson’s license and driver’s license copy
Original Clean Hands Certificate
DC DLCP occupancy permit
Tax number (FEIN or SSN)
Proof of dealership insurance (must be in effect at all times or license may be revoked)
In-person appointment scheduled by DMV to finalize registration

Filing, Renewal & Cancellation

The Basic Business License is valid for 2 years and expires October 31st every other year. The bond must be maintained for the full 2-year license period. Bond forms can be mailed to the Wells Fargo DC Government Wholesale Lockbox (7175 Columbia Gateway Dr, Columbia, MD 21046) or delivered in person to the DLCP Business Licensing Center (1100 4th St SW, 2nd Floor, Washington, DC 20024). Processing takes up to 30 days.

Bond Claims

The bond protects the government of the District of Columbia and the public from financial loss resulting from a dealer’s failure to observe and comply with all D.C. laws, regulations, rules, and orders pertaining to the motor vehicle dealer business.

Department of Licensing and Consumer Protection (DLCP)
(formerly DCRA)
1100 4th Street SW, 2nd Floor
Washington, DC 20024
Phone: (202) 442-4400
Web: dlcp.dc.gov

DC Department of Motor Vehicles (DMV)
95 M Street SW
Washington, DC 20024
Phone: (202) 737-4404
Email: dmv@dc.gov
Web: dmv.dc.gov

Surety One, Inc. is the District of Columbia surety bond expert provider, licensed in all fifty states, U.S. territories, and Canada. We offer competitive rates for DC motor vehicle dealer bonds and all other license bond classes. Call us at (800) 373-2804, email Underwriting@SuretyOne.com, or chat with a live underwriter for immediate assistance.

Surety bond application review and quoting are free of charge. There is no obligation to purchase.