Alabama New or Used Motor Vehicle Dealer Bond
Overview
Alabama's dealer bond does double duty. Under the Alabama Department of Revenue's dealer licensing requirements, implementing Code of Alabama section 40-12-398, an applicant for a new or used motor vehicle dealer license must file a continuous $50,000 surety bond — and the department confirms that the same bond also satisfies the separate bond requirement for dealers who serve as designated agents for titling purposes. One continuous bond, filed with the Department of Revenue, covers both roles for as long as the license is active.
Who Needs This Bond?
Applicants for an Alabama master dealer license — new motor vehicle dealers, used motor vehicle dealers, wholesalers, and rebuilders licensed through the Alabama Department of Revenue — file this $50,000 continuous bond with their application. Dealers who also act as designated agents processing title work do not need a second bond: per the department's own guidance, the dealer bond satisfies the designated agent bonding requirement as well.
What is this Bond For?
The bond financially backs the dealer's compliance with Alabama's dealer licensing and titling laws. If a licensed dealer's unlawful conduct in a vehicle transaction — failing to deliver good title, mishandling taxes and fees, or violating the licensing statutes — causes a monetary loss, the bond provides a source of recovery for the harmed party and the state. Because the bond is continuous, that protection runs uninterrupted rather than expiring on a fixed date each year.
When is it Required?
The bond must accompany your dealer license application to the Department of Revenue — licensing does not proceed without it — and because Alabama requires the bond in continuous form, it stays in force from year to year until cancelled rather than being re-filed annually. Keep it active for as long as you hold the license: a cancellation without replacement breaks a condition of licensure.
Where Does it Apply?
This is a statewide Alabama requirement administered by the Alabama Department of Revenue's Motor Vehicle Division, which issues master dealer licenses under Code of Alabama Title 40, Chapter 12. It applies to licensed dealers in every Alabama county, because the obligation comes from state law and the department's licensing program rather than any local rule.
How to Buy Online
Click 'Buy This Bond Online' on this page and the secure surety portal opens in a new tab. Complete the short application, review your bond documents, and pay securely in one session. Your executed Alabama dealer bond is ready to file with the Department of Revenue as soon as you finish.
Why Bond Titan?
Bond Titan is powered by The Southern Agency, a licensed surety agency, and every requirement on this page is cited to the Alabama Department of Revenue's official guidance in the Official Sources section below — verify the rules yourself before you buy. The online flow gets your executed bond to you in time for your licensing filing.
Official Sources
The requirements described on this page are verified against the official sources below.
- Continuous $50,000 surety bond required for dealer licensure under Code of Alabama §40-12-398; the dealer bond also satisfies the designated agent bond requirement: Alabama Department of Revenue — Dealer Bonding Requirements FAQ (verified July 16, 2026)