Utah Motor Vehicle Dealer Surety Bond
A Utah motor vehicle dealer surety bond — officially the “Bond of Motor Vehicle Dealer, Special Equipment Dealer, Crusher or Body Shop” (Form TC-450) — is a required license bond for any person or business engaged in the buying, selling, repairing, crushing, or exchanging of motor vehicles within the State of Utah. The Utah Motor Vehicle Enforcement Division (MVED), under the Utah State Tax Commission, requires all dealer, body shop, and crusher license applicants to post a surety bond. Standard auto dealer bonds are $75,000 — one of the highest uniform amounts nationally. Surety One, Inc. offers quick, no-hassle underwriting for all Utah MVED bonds.
Bond Amount & Requirements
Utah Code Annotated Title 41, Chapter 3, Section 41-3-205 (Motor Vehicle Business Regulation Act) requires all dealer, crusher, and body shop license applicants to file a corporate surety bond with the MVED. The bond must remain in effect as long as the licensee is in business.
| Bond Amount | License Type | Description |
|---|---|---|
| $75,000 | New Motor Vehicle Dealer | Franchise dealer selling new and used vehicles |
| $75,000 | Used Motor Vehicle Dealer | Sells used motor vehicles to the public |
| $75,000 | Special Equipment Dealer | Sells cherry pickers, truck-mounted cranes, post hole diggers, utility bodies |
| $75,000 | Large Trailer Dealer | Trailers 2,000 lbs or more unladen weight |
| $20,000 | Body Shop | Repairs or restores damaged motor vehicles |
| $10,000 | Motorcycle / OHV / Snowmobile Dealer | Sells motorcycles, ATVs, off-highway vehicles, snowmobiles |
| $10,000 | Small Trailer Dealer | Trailers 750–1,999 lbs unladen weight |
| $10,000 | Crusher | Crushes motor vehicles for recycling |
Important — 8-Hour Orientation, Fingerprinting & Claims Deadlines: Utah has one of the most comprehensive pre-licensing requirements nationally. All first-time applicants must complete a state-approved 8-hour orientation course and submit a 3-hour renewal course each year thereafter. All owners, partners, and corporate officers must submit FBI fingerprint cards and passport-quality photographs. Bond claims must be filed with MVED within 1 year of the cause of complaint, and any court action must commence within 2 years after that (UCA §41-3-404). 60-day cancellation notice is required.
Who Needs This Bond?
Utah defines a motor vehicle dealer as anyone who sells, displays for sale, or exchanges 3 or more new or used motor vehicles or off-highway vehicles within a 12-month period. The bond applies to:
- New and used motor vehicle dealers — $75,000
- Special equipment dealers — $75,000
- Large trailer dealers (2,000+ lbs) — $75,000
- Body shops — $20,000
- Motorcycle, OHV, and snowmobile dealers — $10,000
- Small trailer dealers (750–1,999 lbs) — $10,000
- Crushers — $10,000
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.
Utah Dealer License Requirements
- Completed Bonded Motor Vehicle Business Application (Form TC-301)
- Notarized corporate surety bond (Form TC-450) for the appropriate license type
- State-approved 8-hour orientation course (first-time applicants); original training certificate submitted with application
- FBI fingerprint card (verified by local law enforcement) and Fingerprint Waiver (Form TC-465) for each owner, partner, LLC member, or corporate officer; $20 per fingerprint
- Passport-quality photographs of all owners, partners, and corporate officers
- Photograph of the business location and sign
- Valid Utah sales tax license (Form TC-69)
- Garage liability insurance with minimum $80,000 premises and auto liability coverage
- Business location devoted exclusively to motor vehicle sales, bounded by fence, chain, posts, or other markings; display space for at least 3 vehicles
- Permanent enclosed building for the office
- Permanent sign of at least 24 square feet, painted on or bolted to the office or securely anchored in the ground
- Franchise agreement/manufacturer letter (new vehicle dealers)
- MVED on-site inspection (5–10 working days after application)
Filing, Renewal & Cancellation
The bond is continuous in form and must remain in effect as long as the dealer is in business. Operating without a current bond on file is illegal. Cancellation requires 60 days’ written notice to the principal and the MVED. Annual license renewal requires completion of a 3-hour training course. Dealer plates expire June 30th; lost or stolen plates can only be replaced after expiration.
Bond Claims
The bond covers violations of the Motor Vehicle Business Regulation Act, including failure to deliver a certificate of title or manufacturer’s certificate of origin (UCA §41-3-301) and failure to pay off liens on traded-in vehicles (UCA §41-3-402). A complaint must be filed with MVED within 1 year of the cause, and court action must commence within 2 years after that (UCA §41-3-404).
Utah Motor Vehicle Enforcement Division (MVED)
Utah State Tax Commission
210 North 1950 West
Salt Lake City, UT 84134
Phone: (801) 297-2600
Email: mved@utah.gov
Web: dmv.utah.gov/mved
Surety One, Inc. is the Utah surety bond expert provider, licensed in all fifty states, U.S. territories, and Canada. We offer competitive rates for all Utah MVED bonds — from $10,000 motorcycle bonds to $75,000 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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