California Motor Vehicle Dealer Bond
Overview
California requires every licensed motor vehicle dealer to file a surety bond with the DMV before a dealer license can be issued, and the requirement comes straight from statute: California Vehicle Code section 11710 directs that the DMV shall not issue a dealer or remanufacturer license until the applicant has procured and filed a bond of $50,000. The only statutory exception is for dealers who deal exclusively in motorcycles or all-terrain vehicles, whose bond is set at $10,000. The bond is filed on the DMV's official Surety Bond of Dealer form (OL 25) and must remain on file for as long as you hold the license.
Who Needs This Bond?
Any person applying for or renewing a California motor vehicle dealer license — new car dealers, used car dealers, wholesale dealers, and remanufacturers — must file this bond under Vehicle Code section 11710. Dealers who sell exclusively motorcycles or all-terrain vehicles file at the reduced $10,000 statutory amount using the DMV's OL 25B form, which also covers motorcycle lessor-retailers and wholesale-only dealers handling fewer than 25 vehicles per year. If the DMV has told you a dealer bond is a condition of your occupational license, this is that bond.
What is this Bond For?
Under Vehicle Code section 11710(a), the bond is conditioned on the dealer not practicing fraud or making fraudulent representations that cause a monetary loss to a purchaser, seller, financing agency, or governmental agency. In plain terms: if your dealership's misconduct costs one of those parties money, they can recover against the bond. Section 11710(c) adds real teeth — liability under the bond must remain at full value, and if the bond's available amount is reduced by a claim, or a final court judgment against the dealer and surety goes unpaid, the dealer's license and special plates are automatically suspended until the bond is restored and the judgment satisfied.
When is it Required?
The bond must be procured and filed before the DMV will issue the dealer or remanufacturer license — section 11710(a) says the department 'shall not issue' the license until the bond is on file. It is equally a renewal requirement: before the license is renewed, the dealer must have the statutory bond amount in place. Because a lapse or a drawn-down bond triggers automatic license suspension under section 11710(c), the bond effectively has to stay continuously in force for the entire life of your dealer license.
Where Does it Apply?
This is a statewide California requirement administered by the California Department of Motor Vehicles through its Occupational Licensing program. It applies to dealer licenses issued anywhere in the state, in every county and city, because the obligation comes from the California Vehicle Code rather than any local ordinance. The executed bond is filed with the DMV on its prescribed forms — OL 25 for standard dealers, OL 25B for motorcycle, motorcycle lessor-retailer, and qualifying wholesale-only dealers.
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 California dealer bond is ready to file with the DMV alongside your occupational license application as soon as you finish.
Why Bond Titan?
Bond Titan is powered by The Southern Agency, a licensed surety agency, and every requirement stated on this page is cited to the California Vehicle Code and official DMV forms in the Official Sources section below — so you can verify the rules yourself before you buy. When you're ready, the fully online purchase flow gets your executed bond into your hands fast enough to keep your DMV license timeline on track.
Official Sources
The requirements described on this page are verified against the official sources below.
- Bond required before license issuance; $50,000 amount ($10,000 for exclusively motorcycle/ATV dealers); fraud conditions; automatic suspension rule: California Vehicle Code §11710 (verified July 16, 2026)
- Official DMV Surety Bond of Dealer form (OL 25): California DMV Form OL 25 (verified July 16, 2026)
- OL 25B form for motorcycle, motorcycle lessor-retailer, and wholesale-only dealers (fewer than 25 vehicles/year): California DMV Form OL 25B (verified July 16, 2026)