Oregon Motor Vehicle Dealer Surety Bond
An Oregon motor vehicle dealer surety bond is a required license bond for any person or business that operates as a vehicle dealer or rebuilder within the State of Oregon. The Oregon Department of Transportation (ODOT), Driver and Motor Vehicle Services (DMV), Business Licensing Unit requires all vehicle dealer certificate applicants to post a surety bond as part of the licensing process. The standard bond amount is $50,000 for most dealer types, with a $10,000 bond for dealers selling exclusively motorcycles, mopeds, Class I ATVs, or snowmobiles. Oregon is also notable for having no sales tax and for allowing direct manufacturer-to-consumer vehicle sales. Surety One, Inc. offers quick, no-hassle underwriting for Oregon motor vehicle dealer bonds, including options for new applicants and those with challenged credit.
Bond Amount & Requirements
Oregon Revised Statutes ORS 822.030 requires all vehicle dealer certificate applicants to file a surety bond with the DMV. The bond must be executed by a surety company authorized to transact business in Oregon and is bound to the State of Oregon. The bond is conditioned upon the dealer conducting business without fraud, fraudulent representation, or violation of the Oregon Vehicle Code provisions specified in ORS 822.030(2).
| Bond Amount | License Type | Description |
|---|---|---|
| $50,000 | New (Franchise) Vehicle Dealer | Sells new and used motor vehicles under manufacturer franchise |
| $50,000 | Used Vehicle Dealer | Sells used motor vehicles to the public |
| $50,000 | Wholesale Vehicle Dealer | Sells motor vehicles exclusively to other licensed dealers |
| $50,000 | Recreational Vehicle Dealer | Sells recreational vehicles (RVs) to the public |
| $50,000 | Vehicle Rebuilder | Rebuilds salvage or damaged vehicles for resale |
| $10,000 | Motorcycle Dealer | Sells motorcycles exclusively |
| $10,000 | Moped Dealer | Sells mopeds exclusively |
| $10,000 | Class I ATV Dealer | Sells Class I all-terrain vehicles exclusively |
| $10,000 | Snowmobile Dealer | Sells snowmobiles exclusively |
Important — Bond Depleted by Claims: Oregon’s dealer bond is a one continuing obligation. The liability of the surety is limited to the bond penalty regardless of the number of years the bond is in effect. Unlike states where the bond resets annually, the Oregon bond remains in effect until it is depleted by claims paid or canceled by the surety. Additionally, the maximum payable to persons other than retail customers is capped at $10,000 of the $50,000 bond.
Who Needs This Bond?
ORS 822.005 requires a vehicle dealer certificate for any person who engages in the business of selling vehicles. Oregon defines this broadly to include anyone who sells or offers to sell more than two (2) vehicles per year — one of the lowest thresholds in the country. Exemptions are established under ORS 822.015.
The bond is required for:
- New (franchise) motor vehicle dealers
- Used motor vehicle dealers
- Wholesale motor vehicle dealers
- Recreational vehicle (RV) dealers
- Vehicle rebuilders
- Motorcycle dealers
- Moped dealers
- Class I all-terrain vehicle (ATV) dealers
- Snowmobile dealers
How Much Does the Bond Cost?
The cost of an Oregon motor vehicle dealer surety bond (the “premium”) is a small percentage of the required bond amount. Your exact premium is determined by a number of underwriting factors including your personal credit score, business financial strength, industry experience, and claims history. Because each applicant’s profile is unique, premiums vary and are quoted on an individual basis.
Surety One, Inc. offers competitive rates for all credit profiles, including programs for applicants with challenged credit. Surety bond application review and quoting are free of charge. There is no obligation to purchase. Contact us for your personalized quote.
Oregon Dealer License Requirements
In addition to the surety bond, the Oregon DMV Business Licensing Unit requires the following for a Vehicle Dealer Certificate:
- Completed Vehicle Dealer Certificate application
- Eight-hour Dealer Education Course completion (original certificate required)
- Local zoning certification/approval for the business location
- Liability insurance certificate meeting ORS 806.070 requirements, covering all vehicles manufactured, owned, operated, or under the dealer’s control
- An established place of business — owner names, legal name, business name, and location must match exactly across all documents
- Applicable licensing fees
- Franchise agreement (new/franchise dealers only)
Filing, Renewal & Cancellation
The original surety bond must be signed by both the principal and the surety company and submitted to the DMV Business Licensing Unit. Oregon Vehicle Dealer Certificates are valid for three years — the longest license cycle of any state we cover. The bond is deemed continuous in form and remains in effect for the entire certification period and each succeeding period upon renewal.
The surety may cancel the bond by giving written notice to the DMV. The bond is one continuing obligation and the liability of the surety is limited to the bond penalty regardless of the number of years the bond remains in effect. The bond remains active until depleted by claims or canceled. A yearly certification letter confirming the bond remains in effect must be submitted to DMV.
Bond Claims
A claim against the Oregon motor vehicle dealer surety bond may be filed by any person who suffers loss due to the dealer’s fraud, fraudulent representation, or violation of the Oregon Vehicle Code. The bond specifically covers violations related to vehicle registration, permits, transfers, and alterations. The maximum amount payable to persons other than retail customers is $10,000 of the total bond. For retail customers, the full bond amount is available. Claims deplete the bond — once fully depleted, the bond is effectively exhausted and must be replaced.
Oregon Department of Transportation (ODOT)
Driver and Motor Vehicle Services (DMV)
Business Licensing Unit
1905 Lana Ave NE
Salem, OR 97314
Phone: (503) 945-5052
Email: dmvinsert@odot.oregon.gov
Web: oregon.gov/odot/dmv
Surety One, Inc. is the Oregon surety bond expert provider, licensed in all fifty states, U.S. territories, and Canada. We offer competitive rates and excellent customer service for Oregon motor vehicle dealer bonds and all other license bond classes. Need help meeting your Oregon DMV licensing requirements? Call us at (800) 373-2804, email us at Underwriting@SuretyOne.com, or click here to chat with a live underwriter (no bots!) for immediate assistance. We’re here to support your business success.
Surety bond application review and quoting are free of charge. There is no obligation to purchase.
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