What is the Oregon Motor Vehicle Dealer or Rebuilder Bond?
The Oregon Department of Transportation, Driver and Motor Vehicle Services (DMV) requires auto dealers and rebuilders that operate within the state to get an Oregon Motor Vehicle Dealer or Rebuilder Bond as a licensing requirement.
A surety bond is a three-party contract between the principal (motor vehicle dealer or rebuilder), the obligee (OR Motor Vehicle Services Division), and the surety company. The surety bond acts as a guarantee to the obligee that the principal will adhere to licensing laws and any authorized work performed by the principal is in compliance with the Oregon Vehicle Code.
If the principal fails to adhere to licensing laws or operates fraudulently, causing injury to a consumer, the injured party can file a claim against the principal’s bond. After an investigation in the validity of the claim, the surety company will compensate the injured party up to the full bond amount. Business practices that can result in claims may include incomplete vehicle transfer information, lack of vehicle permits, improper vehicle registration, fraud, late payment to sellers, or non-compliance with dealer certificate regulations.
Unlike typical insurance policies, the principal is responsible for reimbursing the surety company for claims paid out, plus any additional fees and expenses incurred by the surety.
Who has to get this bond?
A motor vehicle dealer or rebuilder who intends to work in the state of Oregon must obtain an Oregon Motor Vehicle Dealer or Rebuilder Bond in order to be licensed to operate in the state.
The Oregon Motor Vehicle Dealer License applies to individuals engaged in buying, selling, brokering, trading, or exchanging vehicles, displaying vehicles for sale, and acting as agents for vehicle owners or buyers.
The Oregon Motor Vehicle Rebuilder License applies to individuals or businesses involved in rebuilding or reconstructing vehicles that were previously titled as salvage, reconstructed, or similar status.
How much does an Oregon Motor Vehicle Dealer or Rebuilder Bond cost?
The Oregon Motor Vehicle Dealer or Rebuilder Bond requires a $50,000 bond. Fortunately, you only have to pay a small percentage of that amount, known as a premium. This premium rate is based on your credit score and experience. It is important to note that this soft credit check required to quote your bond will not harm your credit score.
Applicants with excellent credit may receive quotes starting as low as 1% of the bond amount. We encourage applicants with nonstandard credit to apply for their bonds as well. At EZ Surety Bonds, we work with various reputable and highly rated surety companies to offer the best rates available.
Obligee Information
The obligee or entity that requires the Oregon Motor Vehicle Dealer or Rebuilder Bond is the OR Motor Vehicle Services Division. Here is their contact information:
Oregon Department of Transportation
Driver & Motor Vehicle Services
1905 Lana Ave NE
Salem, OR 97314
Phone: 1-503-945-5000
How to get your Oregon Motor Vehicle Dealer or Rebuilder Bond
It is quick, easy, and free to obtain a quote for your Oregon Motor Vehicle Dealer or Rebuilder Bond with EZ Surety Bonds. Simply fill out our quick online application, and one of our friendly surety experts will contact you within 24 hours regarding your free quote.
Our surety experts are always happy to assist. If you have any questions, do not hesitate to contact bonds@southcoastsurety.com or call 1-800-361-1720.
Frequently Asked Questions
What are the requirements for an Oregon Motor Vehicle Dealer License?
To become a licensed motor vehicle dealer or rebuilder in the State of Oregon, you must:
- Submit a completed standard application form for a Three-Year Vehicle Dealer Certificate.
- Provide a liability insurance certificate.
- Provide an education certificate from a DMV-approved provider or a Certificate of Exemption.
- File an Oregon Motor Vehicle Dealer or Rebuilder Bond of $50,000.
- Pay applicable fees of $1,187 for the original certificate, $350 for each subsequent business location, and $54 for each subsequent dealer plate (as of 2023).
The motor vehicle dealer certificate remains effective for a period of three years and requires renewal before it expires. Additionally, the surety bond remains in effect for the entire certification period and each subsequent certification period upon renewal.
How much is an Oregon Motor Vehicle Dealer or Rebuilder Bond?
The Oregon Motor Vehicle Dealer or Rebuilder Bond requires a $50,000 bond amount. However, you only have to pay a small percentage of the bond amount, called the premium. This premium is determined by your credit score and the number of years you have been in business.
Applicants with excellent credit may find quotes for this bond starting as low as 1% of the bond amount. Fortunately, we work with a variety of surety markets to offer competitive quotes. Because the credit check will not hurt your credit score, we encourage you to apply for your bond anyway, even if you have nonstandard credit.
After I purchase my Oregon Motor Vehicle Dealer or Rebuilder Bond, what do I do?
After you purchase the bond, we will mail the original document to you. Most obligees require you to file the original bond document with them (often with the principal’s wet signature). Every obligee has its own unique filing requirements, so be sure to confirm your obligee's filing requirements before doing anything with your bond.
