North Carolina Motor Vehicle Dealer Bond
Overview
North Carolina scales its dealer bond to the number of salesrooms you operate. Under G.S. 20-288(e), an applicant approved for a motor vehicle dealer license must furnish a corporate surety bond, cash bond, or fixed-value equivalent of $50,000 for one established salesroom, plus $25,000 for each additional established salesroom. The Division of Motor Vehicles will not issue the license until that security is in place, and the same rule reaches manufacturers, distributors, and wholesalers licensed under the article.
Who Needs This Bond?
Applicants approved by the North Carolina DMV for a motor vehicle dealer license furnish this bond — franchised new-car dealers, independent used-car dealers, and wholesalers alike. G.S. 20-288(e) also applies the bond requirement to applicants for manufacturer, factory branch, distributor, and distributor branch licenses. Because the amount is keyed to salesrooms, a dealer with one location posts $50,000 while a dealer adding a second salesroom posts an additional $25,000 in coverage for it.
What is this Bond For?
The bond gives North Carolina vehicle buyers and the state a financial remedy when a licensed dealer's unlawful conduct causes a loss — failures like not delivering good title or violating the dealer licensing article. The statute allows a corporate surety bond, a cash bond, or a fixed-value equivalent, but the purpose is the same in each form: money stands behind the dealer's statutory obligations, and a harmed party can recover against it rather than chasing an insolvent dealership.
When is it Required?
The bond is furnished after the DMV approves your application and before the license is issued — the statute speaks of 'each applicant approved by the Division.' Keep it in force for the life of the license, and remember the amount adjusts with your footprint: opening an additional established salesroom adds $25,000 to your required coverage, so notify your surety before you expand. The DMV's dealer licensing unit collects the bond on its LT-409 dealer surety bond form.
Where Does it Apply?
This is a statewide North Carolina requirement administered by the Division of Motor Vehicles' dealer licensing section. It applies to every established salesroom you operate in the state — each additional location raises the total bond amount — and it comes from the North Carolina General Statutes, not from any county or municipal 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 North Carolina dealer bond is ready to file with the DMV 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 North Carolina General Statutes 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 DMV filing.
Official Sources
The requirements described on this page are verified against the official sources below.
- $50,000 bond for one established salesroom plus $25,000 per additional salesroom; corporate surety bond, cash bond, or fixed-value equivalent accepted; applies to dealer, manufacturer, distributor, and wholesaler license applicants: North Carolina G.S. §20-288(e) (verified July 16, 2026)