What is an Oklahoma Used Motor Vehicle Dealer Bond?
The Oklahoma Used Motor Vehicle & Parts Commission requires anyone seeking to operate a used motor vehicle dealership in the state to obtain an Oklahoma Used Motor Vehicle Dealer Bond (commonly referred to as an MVD Bond) as part of the licensing process.
Oklahoma auto dealer bonds function similarly to other surety bonds in that they are a contractual agreement between the obligee, the principal, and the surety company. The obligee is the entity that requires the bond, while the principal refers to the business or individual that needs the bond. The surety company, or surety, is the business that issues and backs the bond.
The surety assures the obligee (Oklahoma Used Motor Vehicle & Parts Commission) that the principal (the used vehicle dealer) will abide by all state laws and licensing regulations. In the event that an individual files a claim for injury or loss against the principal’s bond, the surety provides compensation to the affected individual up to the bond amount, following an investigation to determine the validity of the claim. Valid claims may result from the sale of stolen vehicles, deceptive practices, fraud, and negligence.
If a claim is proven valid and the claimant is compensated by the surety, it is the principal's responsibility to reimburse the surety for any claims paid out, plus additional fees and expenses incurred by the surety during the investigation of the claim. Accordingly, the principal is bound by the bond to comply with all regulations. For more information on surety bonds and how they work, check our detailed guide here.
Who Has to Get an OK Used MVD Bond?
Retail and wholesale used motor vehicle dealers applying for a dealer license must obtain the Oklahoma Used Motor Vehicle Dealer Bond. Dealers of new motor vehicles are exempt from this requirement.
Oklahoma auto dealer licenses are valid for two years, expiring at the end of the second calendar year - i.e., December 31. Regardless of when you obtain your license, it will expire the following odd-numbered year. Therefore, if you obtain a license in 2023 or 2024, it will expire in 2025. Renewal applications are expected to be submitted by November 1 of the year that the license is set to expire.
How Much Does This Bond Cost?
Oklahoma used motor vehicle dealers must post a bond amount of $25,000. Fortunately, a small percentage of this amount, called the premium, is all that is required to obtain the bond. Various factors contribute to the premium rate, including the applicant’s credit score (via a soft credit check), industry experience, and overall financial standing.
If you have optimal credit, rates may start as low as 1% of the bond amount. Even if you have nonstandard credit, we encourage you to apply for your bond. At EZ Surety Bonds, we work with a variety of sureties to find you the best quote available.
Obligee Information
The obligee—in this case, the Oklahoma Used Car Commission—is the entity that requires the Oklahoma Used Motor Vehicle Dealer Bond. Their contact information is as follows:
Oklahoma Used Motor Vehicle & Parts Commission
421 NW 13th, Suite 330
Oklahoma City, Oklahoma 73103
Email: okumvpc@umvpc.ok.gov
Phone: 405-521-3600
How to Obtain Your OK Used Motor Vehicle Dealer Bond
EZ Surety Bonds makes the application process quick and easy for any bond you may need. To get your Oklahoma Used Motor Vehicle Dealer Bond, simply fill out our quick online form, and one of our friendly surety experts will contact you regarding your free quote within 24 hours. Following payment and receipt of your bond, you can file it with the obligee, the Oklahoma Used Motor Vehicle & Parts Commission.
Our surety experts are always happy to assist. If you have any questions, please contact us at bonds@southcoastsurety.com or call 1-800-361-1720.
Frequently Asked Questions
How to become a licensed dealer in Oklahoma
You must complete the following steps to obtain your Oklahoma Used Motor Vehicle Dealer License:
- Complete the application and all required forms, including the identification of your business and licensed dealer type. The Oklahoma Used Car Commission instruction sheet and forms are found here.
- Pay the application fee via a check, cashier's check, or money order. The application fee is $600 for new, used, and wholesale motor vehicle dealers.
- Submit a report to the Oklahoma State Bureau of Investigations (OSBI).
- Obtain your Oklahoma Auto Dealer Bond.
- Attend the mandatory education program.
- Submit all requirements to the obligee.
Remember that license applications are presented to the board for consideration on the second Tuesday of every month, and requirements are due eleven days before the meeting.
How much is a Used Motor Vehicle Dealer Bond in Oklahoma?
Oklahoma used motor vehicle dealers are required to secure a $25,000 bond amount, which has a premium rate determined by several factors. If you have a good credit rating, you may qualify for a premium rate starting as low as 1% of the bond amount. Regardless of your credit standing, our surety experts will contact you regarding your free quote within 24 hours of completing the form on our website.
I purchased my Oklahoma Used Motor Vehicle Dealer Bond; what’s next?
After you purchase the bond, we will mail the original document to you. Most obligees require you to file the original bond with them (usually signed by the principal), although some obligees may approve of an electronic copy. Every obligee has their own unique filing requirement, so be sure to confirm the filing requirements of your obligee before doing anything with your bond.
