Wisconsin Motor Vehicle Dealer Surety Bond
A Wisconsin motor vehicle dealer surety bond is a required license bond for any person or business engaged in the sale of motor vehicles within the State of Wisconsin. The Wisconsin Department of Transportation (WisDOT), Dealer & Agent Section requires all dealer license applicants to post a surety bond as part of the licensing process. Bond amounts range from $5,000 to $50,000 depending on the dealer license type. Surety One, Inc. offers quick, no-hassle underwriting for Wisconsin motor vehicle dealer bonds, including options for new applicants and those with challenged credit.
Bond Amount & Requirements
Wisconsin Statutes Chapter 218 requires motor vehicle dealer license applicants to file a surety bond with WisDOT using the official Dealer Bond form MV2511. The bond amount is determined by the type of dealer license being sought. The bond must be executed by a surety company authorized to transact business in the State of Wisconsin.
The bond is conditioned upon the dealer conducting business in conformity with the provisions of Chapter 218 of the Wisconsin Statutes. It is made to the “State of Wisconsin for the benefit of any aggrieved person.” A unique feature of the Wisconsin bond is that the full face amount applies separately to each 12-month period the bond is in effect, meaning the bond resets annually even on continuous bonds.
| Bond Amount | License Type | Description |
|---|---|---|
| $50,000 | Motor Vehicle Dealer (Retail) | Sells or leases new and/or used motor vehicles to the general public |
| $25,000 | Motor Vehicle Salvage Dealer | Deals in salvage vehicles, dismantling, or rebuilding |
| $25,000 | Motor Vehicle Wholesaler | Sells motor vehicles exclusively to other licensed dealers |
| $25,000 | Motor Vehicle Auction Dealer | Conducts motor vehicle auction sales |
| $25,000 | Recreational Vehicle Dealer | Sells recreational vehicles (RVs) to the public |
| $5,000 | Moped Dealer | Sells mopeds to the public |
| $5,000 | Motorcycle Dealer | Sells motorcycles to the public |
Important — Annual Bond Reset: Wisconsin’s dealer bond is unique in that the full face amount resets for each 12-month period the bond is in effect. This means that claims from one year do not reduce the bond amount available for the following year. If the bond is designated as “continuous,” it does not automatically expire with the license but continues from year to year as a new and separate obligation.
Who Needs This Bond?
Wisconsin requires an official dealer license for any person who acquires even one (1) vehicle with the intention of selling it. This is one of the lowest thresholds in the country. Individuals who sell or lease vehicles to the general public must maintain a retail dealer license. Those who sell exclusively to other licensed dealers need a separate wholesale dealer license.
The bond is required for:
- Retail motor vehicle dealers (new and used)
- Motor vehicle wholesalers
- Motor vehicle salvage dealers
- Motor vehicle auction dealers
- Recreational vehicle (RV) dealers
- Motorcycle dealers
- Moped dealers
How Much Does the Bond Cost?
The cost of a Wisconsin 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.
Wisconsin Dealer License Requirements
In addition to the surety bond, the Wisconsin Department of Transportation requires the following for a dealer license:
- Completed motor vehicle dealer license application (two copies required)
- Entity/Owner Statement for every individual with ownership interest
- Salesperson/Representative license application for each salesperson
- Buyer’s license application (motorcycle and retail dealers)
- Motor vehicle service agreement (signed)
- An established permanent place of business (not a residence)
- Zoning and local permit approval for the business location
- Copy of a valid lease for the business real estate during the licensing period (unless owned)
- Sales tax seller’s permit from the Wisconsin Department of Revenue
- Manufacturer/importer/distributor certification of dealer (new vehicle and new motorcycle dealers only)
- Dealer education — used vehicle dealers must complete 5 hours of continuing education at each renewal from a DOT-approved provider
- Licensing fee of $40 plus $40 for each location and $8 for each salesperson license
Filing, Renewal & Cancellation
The original executed surety bond (Form MV2511) must be printed, signed by the principal, and mailed to WisDOT with the dealer license application. Wisconsin dealer licenses are valid for two years and expire on the odd-numbered month closest to the month the license was issued. WisDOT will mail a renewal packet approximately two months before the license expiration date.
The surety may terminate the bond by giving 60 days’ written notice to the Wisconsin Department of Transportation. Termination does not affect the bond with respect to any obligation arising prior to 60 days following receipt of the notice. If the bond is terminated and not immediately replaced with a comparable bond, the dealer’s license will be suspended. Within 10 days of any claim made against the bond, the surety company must mail notice to WisDOT.
Bond Claims
Any aggrieved person who suffers loss or damage by reason of a dealer’s violation of Wisconsin Statutes Chapter 218 has the right to file a claim against the dealer’s surety bond. The bond is made to the “State of Wisconsin for the benefit of any aggrieved person.” The aggregate liability of the surety to all persons within any single 12-month period shall not exceed the face amount of the bond. Common claim triggers include failure to deliver title, odometer tampering, misrepresentation of vehicle condition, and nonpayment of taxes or fees.
Wisconsin Department of Transportation
Dealer & Agent Section
P.O. Box 7909
Madison, WI 53707-7909
Phone: (608) 266-1425
Email: DealerLicensingUnit@dot.wi.gov
Web: wisconsindot.gov
Surety One, Inc. is the Wisconsin surety bond expert provider, licensed in all fifty states, U.S. territories, and Canada. We offer competitive rates and excellent customer service for Wisconsin motor vehicle dealer bonds and all other license bond classes. Need help meeting your WisDOT 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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