Request an Illinois Auto Dealer Bond Quote
Submit the quote application to receive the premium available for your dealership. After purchasing the bond, Bonds Express will send you the bond form to sign and submit to the Illinois Secretary of State.
Bond Expiration and Renewal
Illinois motor vehicle dealer licenses expire on December 31 each year. The bond must cover the license term and cannot expire before December 31 of the applicable license year.
A dealer may qualify for a bond exemption after 60 consecutive months of compliance, as determined by the Illinois Secretary of State. Confirm your bond requirement with the Dealer Licensing Section before discontinuing coverage.
While the bond remains required, use the policy and invoice information provided to complete your Illinois Auto Dealer Bond renewal.
Who Needs an Illinois Auto Dealer Bond?
New and used motor vehicle dealers applying for an Illinois dealer license generally need this bond. Brokers and wholesalers must also meet the applicable vehicle dealer licensing requirements.
A dealer license is generally required when a person sells or deals in five or more vehicles during a year, acts as an intermediary or broker, or represents that they are engaged in the vehicle-selling business.
Illinois Motor Vehicle Dealer Bond Requirements
- Bond amount: $50,000 for each dealership location
- Obligee: People of the State of Illinois
- Licensing authority: Illinois Secretary of State, Dealer Licensing Section
- Bond period: The applicable annual dealer license term
The bond must be issued in the dealership’s business name and submitted as part of the motor vehicle dealer license application. Review the official Illinois dealer license instructions before submitting your documents.
What Does the Illinois Auto Dealer Bond Cover?
The bond guarantees the proper transmission of title and registration fees and taxes collected by the dealer. It must meet the conditions established in the Illinois Vehicle Code.
Find Another Motor Vehicle Bond
Need a different bond for your dealership or vehicle-related license? Browse our motor vehicle bonds to find the applicable product.
A surety bond protects the party requesting the bond, the Obligee, against any financial losses as a result of poor financial decisions, damages, unethical decisions, or a failure to follow state and local laws on the part of you, the Principal. The Illinois Motor Vehicle Dealer Bond holds you accountable for your business decisions.
By possessing an Illinois Motor Vehicle Dealer Bond, you are telling your Obligee that you can be trusted as a Principal and that you stand behind your business decisions.
