Illinois Motor Vehicle Dealer Designated Agent Bond
Overview
Illinois writes its dealer bond requirement into the license application itself, and it scales with your footprint. Under section 5-101(b)(10) of the Illinois Vehicle Code (625 ILCS 5/5-101), an applicant for a new vehicle dealer license must file a bond or certificate of deposit of $50,000 for each location at which the applicant intends to act as a dealer. The bond runs for the term of the license and expires no sooner than December 31 of the license year. Licensed Illinois dealers also serve as designated agents of the Secretary of State for title and registration work, which is why this bond is commonly called the designated agent bond.
Who Needs This Bond?
Anyone applying to the Illinois Secretary of State for a vehicle dealer license needs this bond as part of the application package — and because the requirement is per location, a dealer with three rooftops files $50,000 in coverage for each one. New vehicle dealers are covered by 625 ILCS 5/5-101; used vehicle dealers are licensed under the parallel section 5-102 of the same code. If the Secretary of State's Vehicle Services Department has asked for your dealer bond or designated agent bond, this is it.
What is this Bond For?
The bond backs your obligations as a licensed Illinois dealer and as a designated agent handling title and registration transactions for your customers. It gives the state and the public a financial remedy if a dealer mishandles title paperwork, fails to remit taxes and fees collected in a vehicle transaction, or otherwise violates the Illinois Vehicle Code in a way that causes monetary loss. Because Illinois dealers process title work as agents of the Secretary of State, the bond protects that public function as well as individual buyers.
When is it Required?
The bond is filed with your dealer license application — the statute lists it among the items every application 'shall contain,' so the Secretary of State will not issue the license without it. It must cover the term of the license or renewal being applied for, and by statute it expires not sooner than December 31 of the year for which the license was issued. Practically, that means Illinois dealers refresh their bond on a calendar-year cycle aligned with license renewal.
Where Does it Apply?
This is a statewide Illinois requirement administered by the Secretary of State, who licenses vehicle dealers under Chapter 5 of the Illinois Vehicle Code. The per-location rule means the requirement follows every established place of business you operate in Illinois — each licensed location needs its own $50,000 in bond or certificate-of-deposit coverage.
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 Illinois dealer bond is ready to file with the Secretary of State 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 Illinois Vehicle Code in the Official Sources section below — verify the rules yourself before you buy. The fully online flow gets your executed bond to you in time for your Secretary of State filing.
Official Sources
The requirements described on this page are verified against the official sources below.
- $50,000 bond or certificate of deposit per dealer location, filed with the license application; bond term runs with the license and expires not sooner than December 31 of the license year: Illinois Vehicle Code, 625 ILCS 5/5-101(b)(10) (verified July 16, 2026)