Montana Motor Vehicle Dealer Surety Bond
A Montana motor vehicle dealer surety bond is a required license bond for any person or business engaged in the buying, selling, consigning, exchanging, or brokering of motor vehicles within the State of Montana. The Montana Department of Justice, Motor Vehicle Division (MVD), Title and Registration Bureau issues dealer licenses and requires all applicants to post a surety bond. Montana is a no sales tax state, and bond amounts range from $5,000 to $50,000 depending on the type of vehicles sold. Surety One, Inc. offers quick, no-hassle underwriting for all Montana motor vehicle dealer bonds.
Bond Amount & Requirements
Montana Code Annotated Title 61, Chapter 4, Section 61-4-101 requires all persons seeking a motor vehicle dealer license to furnish a surety bond. Bond amounts are tiered by vehicle type.
| Bond Amount | License Type | Description |
|---|---|---|
| $50,000 | New (Franchise) Motor Vehicle Dealer | Sells new and used cars, trucks, trailers, motor homes |
| $50,000 | Used Motor Vehicle Dealer | Sells used motor vehicles to the public |
| $50,000 | Wholesale Dealer | Sells motor vehicles to other licensed dealers |
| $50,000 | Public Consignment Auto Auction | Conducts motor vehicle auction sales |
| $50,000 | Motor Vehicle Broker | Arranges vehicle sales between buyers and sellers |
| $50,000 | Manufactured Dwelling Dealer | Sells manufactured homes, house trailers, commercial trailers |
| $15,000 | Street-Legal Motorcycle / Quadricycle Dealer | Sells motorcycles or quadricycles for highway use |
| $5,000 | Snowmobile / Off-Highway Vehicle Dealer | Sells snowmobiles, non-street-legal motorcycles, off-highway vehicles |
| $5,000 | Motorboat / Personal Watercraft Dealer | Sells motorboats and personal watercraft |
Important — No Sales Tax & Broad License Coverage: Montana is one of only five states with no statewide sales tax, which means the bond does not cover sales tax remittance obligations (unlike most states). Montana’s bond program also covers an unusually broad range of license types, including manufactured dwelling dealers, motor vehicle brokers, and motorboat/personal watercraft dealers under the same statute. New vehicle, motor home, and power sport dealers selling new units must maintain a service department.
Who Needs This Bond?
Montana requires a dealer license for any person engaged in the business of buying, selling, consigning, exchanging, or brokering motor vehicles. The bond applies to all license types issued by the MVD:
- New (franchise) motor vehicle dealers — $50,000
- Used motor vehicle dealers — $50,000
- Wholesale dealers — $50,000
- Public consignment auto auction dealers — $50,000
- Motor vehicle brokers — $50,000
- Manufactured dwelling dealers — $50,000
- Street-legal motorcycle and quadricycle dealers — $15,000
- Snowmobile and off-highway vehicle dealers — $5,000
- Motorboat and personal watercraft dealers — $5,000
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.
Montana Dealer License Requirements
- Completed dealer application (Form MV22) filed with the MVD Title and Registration Bureau in Deer Lodge
- Surety bond for the appropriate license type
- Permanent business location with: computer, printer, and internet access; record-keeping facilities; permanent building and sales lot
- Permanent sign with business name in letters at least 6 inches in height, visible from a minimum distance of 150 feet
- Telephone and posted business hours
- Written zoning approval from the local city or county zoning authority
- General liability insurance (and garage liability insurance if applicable)
- Service department (required for new vehicle, motor home, and power sport dealers)
- Diagram/plan of business location with lot dimensions, building and sign placement, plus two or more photos
- Ownership information for all persons with a stake in the dealership
- Business registration with Montana Secretary of State and Department of Revenue
- Federal Employer Identification Number (FEIN)
- License and dealer plate fees
Filing, Renewal & Cancellation
Dealer licenses and bonds expire December 31st of each year (manufactured home dealers expire September 30th). The bond is continuous in form, remaining in effect until canceled. Cancellation requires written notice with the reason, filed 30 days prior to the cancellation date. Renewal applications are mailed to the Title and Registration Bureau in Deer Lodge.
Bond Claims
A claim against the Montana dealer bond may be filed by any person who suffers financial harm due to the dealer’s failure to comply with Montana motor vehicle industry laws, including unethical advertising, inaccurate vehicle disclosures, improper handling of funds, and failure to follow titling and registration procedures.
Montana Department of Justice
Motor Vehicle Division — Title and Registration Bureau
1003 Buckskin Drive
Deer Lodge, MT 59722-2375
Phone: (406) 444-3961
Email: DOJMVDTitleReg@mt.gov
Web: dojmt.gov/driving
Surety One, Inc. is the Montana surety bond expert provider, licensed in all fifty states, U.S. territories, and Canada. We offer competitive rates for all Montana dealer bonds — from $5,000 watercraft bonds to $50,000 auto 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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