North Dakota Motor Vehicle Dealer Surety Bond
A North Dakota motor vehicle dealer surety bond is a required license bond for any person or business engaged in the buying, selling, or exchanging of motor vehicles within the State of North Dakota. The North Dakota Department of Transportation (DOT), Motor Vehicle Division (MVD) requires all dealer license applicants to post a surety bond. Bond amounts are $25,000 for new and used motor vehicle dealers, $10,000 for trailer and motor-powered recreational (MPR) vehicle dealers, and $50,000 for mobile home and manufactured home dealers. North Dakota also imposes a unique minimum sales volume requirement: dealers selling fewer than 8 vehicles per year may not renew. Surety One, Inc. offers quick, no-hassle underwriting for all North Dakota motor vehicle dealer bonds.
Bond Amount & Requirements
North Dakota Century Code Title 39, Chapter 22 requires all motor vehicle dealer license applicants to furnish a continuous surety bond. Each dealer license type uses a separate bond form. The bond runs to the State of North Dakota and indemnifies any person dealing with the dealer from loss or damage caused by the dealer’s failure to comply with Title 39.
| Bond Amount | License Type | Bond Form | Description |
|---|---|---|---|
| $25,000 | New Motor Vehicle Dealer | SFN 2933 | Franchise dealer selling new and used vehicles |
| $25,000 | Used Motor Vehicle Dealer | SFN 2933 | Sells used motor vehicles to the public |
| $10,000 | Trailer Dealer | Separate form | Sells new and/or used trailers |
| $10,000 | Motor-Powered Recreational (MPR) Vehicle Dealer | Separate form | Sells ATVs, snowmobiles, motorcycles, RVs |
| $50,000 | Mobile Home / Manufactured Home Dealer | Separate form | Sells mobile homes and manufactured homes |
Important — Minimum Sales Volume & Aggregate Liability: North Dakota is one of the few states that imposes a minimum annual sales threshold: dealers who sell fewer than 8 motor vehicles per year will not be allowed to renew their license. Additionally, the aggregate liability of the surety to all persons is limited to the bond’s penal sum for any one annual license period, effectively resetting the bond each year. North Dakota also requires dealers to use the state’s Electronic Title and Registration System (ETRS) for all title applications and registration documents.
Who Needs This Bond?
North Dakota defines a motor vehicle dealer broadly to include new (franchise) dealers, used dealers, MPR dealers, trailer dealers, and mobile/manufactured home dealers. The bond applies to:
- New (franchise) motor vehicle dealers — $25,000
- Used motor vehicle dealers — $25,000
- Motor-powered recreational vehicle (MPR) dealers — $10,000
- Trailer dealers — $10,000
- Mobile home / manufactured home dealers — $50,000
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.
North Dakota Dealer License Requirements
- Completed Application for Dealer’s License with $100 license fee
- Surety bond for the appropriate license type (separate forms per type)
- Business lot of at least 2,500 square feet with a heated office with lighting and standard office equipment
- Permanent signage of at least 32 square feet with letters at least 10 inches in height, displaying the dealership business name and visible from the street
- Secondary lots within 5 miles must also meet the same signage standards
- Garage liability insurance (maintained at all times)
- Service and/or repair area (required for MPR dealers and mobile/manufactured home dealers)
- Compliance with all applicable local zoning regulations
- MVD on-site inspection of the business location prior to final license approval
- Registration as an ETRS (Electronic Title and Registration System) user
- Dealer plate fees (one plate included with license; additional plates require fees and minimum sales criteria)
Filing, Renewal & Cancellation
Dealer licenses expire December 31st of each year regardless of the date of issuance. Renewal notices are typically sent in early November. The bond is continuous in form and remains in force until canceled. The surety may cancel by giving 30 days’ written notice by certified mail to the principal and the DOT Motor Vehicle Division. The dealer must provide a replacement bond before the cancellation takes effect, or the license is subject to suspension.
Bond Claims
The bond indemnifies any person dealing or transacting business with the dealer for loss or damage caused by the dealer’s failure to comply with Title 39 of the North Dakota Century Code, including failure to furnish a proper and valid certificate of title, misrepresentation, and failure to remit required taxes and fees. Aggregate surety liability is capped at the bond’s penal sum per annual license period.
North Dakota Department of Transportation
Motor Vehicle Division
608 E. Boulevard Avenue
Bismarck, ND 58505-0780
Phone: (701) 328-1285
Web: dot.nd.gov/divisions/mv
Surety One, Inc. is the North Dakota surety bond expert provider, licensed in all fifty states, U.S. territories, and Canada. We offer competitive rates for all North Dakota dealer bonds — from $10,000 trailer bonds to $50,000 manufactured home 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.
What We Need From You
Obligee's Bond Form
