Ohio Motor Vehicle Dealer Surety Bond

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Bond Penalty: $25,000

An Ohio motor vehicle dealer surety bond — officially known as the Motor Vehicle Title Defect Bond — is a required bond for used motor vehicle dealers operating in the State of Ohio. Ohio has one of the most distinctive dealer bond structures in the country: the bond is filed with the Ohio Attorney General’s Office (not the BMV), and exists solely to replenish the Title Defect Rescission (TDR) Fund, a state-administered consumer protection fund. The Ohio Bureau of Motor Vehicles (BMV) oversees dealer licensing, but the bond obligation runs to the Attorney General. Surety One, Inc. offers quick, no-hassle underwriting for Ohio used auto dealer bonds.

Bond Amount & Requirements

Ohio Administrative Code Section 4501:1-3-11 requires used motor vehicle dealers to post a $25,000 surety bond with the Attorney General’s Office. The bond is used solely for the purpose of replenishing funds distributed from the TDR Fund to compensate retail purchasers of vehicles from the dealership. No license will be issued if a surety bond has not been secured.

Bond AmountLicense TypeBond Required?
$25,000Used Motor Vehicle DealerYes — filed with Attorney General
N/ANew (Franchise) Motor Vehicle DealerNo — Not required

Important — TDR Fund, Attorney General Filing & New Dealer Rule: Ohio’s bond is unique nationally. The bond is filed with the Attorney General’s Consumer Protection Section, TDRF Unit — not the BMV. It exists solely to replenish the Title Defect Rescission (TDR) Fund (ORC §1345.52), which reimburses consumers when dealers fail to deliver a valid certificate of title within 40 days, sell rebuilt salvage or “buy-back” vehicles without disclosure, or tamper with odometers. Dealers licensed for fewer than 3 years must post the bond; established dealers are assessed into the TDR Fund directly. New dealers who obtain a bond are not required to pay into the TDR Fund until the next A.G. assessment. Dealers unable to obtain a bond may not sell vehicles to which they do not hold title.

Who Needs This Bond?

Ohio requires a dealer license for anyone who sells five (5) or more motor vehicles in a 12-month period. The bond is required specifically for used motor vehicle dealers:

  • Used motor vehicle dealers — $25,000 bond required
  • New (franchise) motor vehicle dealers who also hold a used dealer license — bond required for the used license component

Not required to post bond: New (franchise) motor vehicle dealers who do not hold a used dealer license.

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.

Ohio Dealer License Requirements

  • Completed Used Dealer Application filed with the BMV Dealer Licensing Section
  • $25,000 surety bond — original bond mailed to the Ohio Attorney General, Consumer Protection Section, TDRF Unit
  • Bond must include the registered business name exactly as filed with the BMV and Secretary of State
  • Ohio Bureau of Criminal Identification and Investigation (BCI) background check for each person listed on the application
  • Photographs of the business location
  • Business registration with the Ohio Secretary of State
  • Dealer plates (number allowed based on annual sales volume)

Note: Ohio does not require dealers to maintain liability insurance as a condition of licensing.

Filing, Renewal & Cancellation

The Ohio dealer license expires March 31st every other year (biennial) regardless of the date of issuance. License renewal is available through the BMV’s online licensing portal; dealers should include a copy of their surety bond continuation certificate. The bond may be continued by certificate for subsequent periods. The surety may cancel at any time with 30 days’ written notice to the Registrar of the Bureau of Motor Vehicles. Any dealer who fails to retain a valid bond at any time during the license will be immediately referred to the Motor Vehicle Dealers Board for possible suspension or revocation.

The Title Defect Rescission (TDR) Fund

The TDR Fund is Ohio’s unique consumer protection mechanism. Created under ORC §1345.52, the fund reimburses retail purchasers who suffer damages when a dealer fails to provide a valid certificate of title within the statutorily required 40-day period, sells a rebuilt salvage or “buy-back” vehicle without disclosure, or tampers with odometer readings. When the fund pays a claim, the Attorney General seeks reimbursement from the dealer’s surety bond.

Ohio Attorney General
Consumer Protection Section
Attn: TDRF Unit Surety Bond
30 E. Broad Street, 14th Floor
Columbus, OH 43215

Ohio Bureau of Motor Vehicles
Dealer Licensing Section
P.O. Box 16521
Columbus, OH 43216-6521
Web: bmv.ohio.gov

Surety One, Inc. is the Ohio surety bond expert provider, licensed in all fifty states, U.S. territories, and Canada. We offer competitive rates for Ohio used 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.