Wisconsin NEW Motor Vehicle Dealer Bond
Overview
Wisconsin folds its dealer bond into the license application statute and carves out one notable exception. Under Wis. Stat. section 218.0114(5)(a), an applicant for a motor vehicle dealer license must file with the application a bond or irrevocable letter of credit of not less than $50,000, executed in the name of the Wisconsin Department of Transportation. Dealers who sell only motorcycles file at a reduced statutory amount of $5,000 — but for new motor vehicle dealers, the $50,000 figure applies from day one.
Who Needs This Bond?
Applicants for a Wisconsin motor vehicle dealer license under chapter 218 — including franchised new vehicle dealers — file this bond or letter of credit with the Department of Transportation as part of the license application. The statute pins the requirement to the application itself, so a new dealership cannot complete licensing without it. Motorcycle-only dealers are the single class the statute treats differently, at $5,000 instead of $50,000.
What is this Bond For?
The bond is executed in the name of the department and backs the dealer's compliance with Wisconsin's motor vehicle dealer laws. If a licensed dealer's unlawful conduct — failing to deliver good title, mishandling transaction funds, or violating chapter 218's dealer provisions — causes a monetary loss, the bond provides a source of recovery. The surety's payment of a valid claim becomes the dealer's debt to repay, which keeps the financial accountability on the dealership.
When is it Required?
File the executed bond or letter of credit with your dealer license application — the statute's language is that the applicant 'shall file with the application' the required security, so licensing does not move forward without it. Keep the coverage continuously in force through every renewal for as long as you hold the license; a lapse breaks a statutory condition of licensure.
Where Does it Apply?
This is a statewide Wisconsin requirement administered by the Wisconsin Department of Transportation, which licenses motor vehicle dealers under section 218.0114 of the statutes. It applies to licensed dealers throughout the state, because the obligation comes from the Wisconsin Statutes rather than any county or municipal rule, and the instrument runs in the department's name.
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 Wisconsin dealer bond is ready to file with WisDOT 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 Wisconsin 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 WisDOT filing.
Official Sources
The requirements described on this page are verified against the official sources below.
- Bond or irrevocable letter of credit of not less than $50,000 ($5,000 for motorcycle-only dealers) filed with the dealer license application, executed in the name of the Department of Transportation: Wisconsin Statutes §218.0114(5)(a) (verified July 16, 2026)