Which type of dealers are required to have a surety bond?

Surety bonds are a fundamental requirement for all types of vehicle dealers, as they serve to protect consumers and ensure that dealers operate within legal and ethical standards. When a dealer obtains a surety bond, they essentially provide a financial guarantee that they will adhere to the regulations of their industry. If a dealer fails to comply with these regulations, consumers can make a claim against the bond for damages or losses incurred due to the dealer's actions.

This requirement is not limited to just new motor vehicle dealers or used motor vehicle dealers; it applies equally to powersports dealers as well. Each category is subject to various state regulations designed to safeguard the interests of consumers and maintain integrity in the marketplace.

The broad applicability of the surety bond requirement across all vehicle dealer types reflects the state's commitment to regulating the industry comprehensively, ensuring that all dealers are held to the same standard of accountability. This is why all categories of dealers—new motor vehicle dealers, used motor vehicle dealers, and powersports dealers—are required to have a surety bond.