Idaho Motor Vehicle Dealer Surety Bond
An Idaho motor vehicle dealer surety bond — officially called a Vehicle or Vessel Dealer Bond (Form ITD 3170) — is a required license bond for any person or business engaged in the sale of vehicles or vessels within the State of Idaho. The Idaho Transportation Department (ITD), Division of Motor Vehicles, Dealer Licensing Unit requires all dealer license applicants to post a surety bond. Idaho is unique in requiring a higher bond for wholesale dealers ($40,000) than for retail dealers ($20,000), and in offering a bond waiver for established dealers with three consecutive clean years. Surety One, Inc. offers quick, no-hassle underwriting for all Idaho vehicle dealer bonds.
Bond Amount & Requirements
Idaho Code Title 49, Chapter 16, Section 49-1608 requires all vehicle and vessel dealer license applicants to file a performance bond with the department. Bond amounts vary by dealer type.
| Bond Amount | License Type | Description |
|---|---|---|
| $20,000 | Retail Motor Vehicle Dealer | Sells new and/or used vehicles to the public |
| $40,000 | Wholesale-Only Dealer | Sells vehicles exclusively to other licensed dealers (effective July 1, 2015) |
| $10,000 | Motorcycle Dealer | Sells motorcycles |
| $10,000 | ATV / UTV Dealer | Sells all-terrain vehicles and utility type vehicles |
| $10,000 | Snowmobile (Snow Machine) Dealer | Sells snowmobiles |
| $10,000 | Truck Camper Dealer | Sells truck campers |
Important — Bond Waiver & ICAR Fund: Idaho is one of the few states that allows a bond waiver. Retail dealers who have operated for at least 3 consecutive years without any lapses, claims against their bond, or ICAR judgments may opt to operate without a bond. In lieu of a bond, all retail dealers must pay $300 into the Idaho Consumer Asset Recovery (ICAR) Fund, a dealer-funded reserve that compensates consumers who suffer actual loss from dealer violations. Wholesale-only dealers are exempt from the ICAR fee. A cash deposit or certificate of deposit (CD) of equal amount may also be posted in lieu of a surety bond; however, the CD remains on deposit until 5 years after the dealership goes out of business.
Who Needs This Bond?
Idaho Statutes Section 49-1634 requires a dealer license for anyone who sold at least five (5) vehicles in the previous year. The bond covers:
- New (franchise) motor vehicle dealers — $20,000 bond
- Used motor vehicle dealers — $20,000 bond
- Wholesale-only motor vehicle dealers — $40,000 bond
- Motorcycle dealers — $10,000 bond
- ATV and UTV dealers — $10,000 bond
- Snowmobile (snow machine) dealers — $10,000 bond
- Truck camper dealers — $10,000 bond
- Vessel (boat) dealers — bond amount per ITD requirements
How Much Does the Bond Cost?
The cost is a small percentage of the required 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.
Idaho Dealer License Requirements
- Completed dealership license application (call Dealer Services at (208) 334-8681 first to verify business name uniqueness)
- Vehicle or Vessel Dealer Bond (Form ITD 3170) — must be notarized and signed by all principals
- ICAR Fund payment of $300 (retail dealers only; wholesale-only dealers exempt)
- An enclosed commercial structure meeting applicable building codes, zoned for the type of business (home residences not allowed unless separate building with separate entrance)
- Liability insurance: minimum $25,000 / $50,000 / $15,000 (bodily injury per person / per occurrence / property damage)
- Franchise agreement with manufacturer for each new vehicle make (new dealers only)
- Proof of corporate, LLC, or LLP status with the Idaho Secretary of State
- Idaho Sales Tax Number Certificate (Idaho State Tax Commission)
- Federal Employer Identification Number (EIN)
- Personal history/salesperson form (ITD-3171) for all owners and salespeople
- Eight-hour pre-licensing course and exam (used and wholesale dealers)
- Zoning approval from local county or zoning authority
- Application fee: $190 (new/used dealers); $300 ICAR fee (retail); $44 supplemental lot/change of location
Filing, Renewal & Cancellation
The bond is continuous in form with no expiration date, remaining in effect until canceled by the surety. Premium is payable annually. The surety must send 30 days’ prior written notice of cancellation to the ITD. Dealer licenses expire one year from the date of issuance and must be renewed before expiration.
After a completed application is processed, a Motor Vehicle Investigator will conduct an on-site inspection. If approved, a 90-day temporary license is issued. A permanent license follows after the 90-day follow-up audit is approved.
Bond Claims & ICAR Fund
Claims against the surety bond are filed directly with the surety company. The ICAR Fund provides a separate, additional layer of consumer protection — a dealer-funded reserve for individuals who have suffered actual loss as a result of a dealer violating certain sections of Idaho Code. Consumer complaints and investigation requests are filed on Form ITD 3628.
Idaho Transportation Department (ITD)
Division of Motor Vehicles — Dealer Services
P.O. Box 34
Boise, ID 83731-0034
Phone: (208) 334-8681
Web: itd.idaho.gov/dmv/vehicle-dealers
Surety One, Inc. is the Idaho surety bond expert provider, licensed in all fifty states, U.S. territories, and Canada. We offer competitive rates for all Idaho vehicle and vessel 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.
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