Montana Auto Dealer Bond

A Montana auto dealer bond can cost as little as $100, depending on the type of bond you need. Montana has multiple bond requirements for vehicle dealers, ranging from $50,000 to $5,000. Although these amounts are high, the cost of these bonds is much less than the total. For example, for a $50,000 bond, the premium can be as little as $500.

Your credit score, as well as the strength of your business finances and paperwork, can help you save money on your bond premiums. The better these elements look to the surety company, the more you save.

Here’s a breakdown of the three bond options in Montana and their premium costs based on your credit score.

If you’re trying to get a Montana motor vehicle dealer license, you must get a bond first. This way, you can show proof of bonding to the state so your license will be approved. 

We recently helped an auto dealer in Billings get bonded. Their business model focuses on selling used cars, but they also sell motorcycles and other power sports vehicles. We helped them determine the correct bond amount so they could get licensed quickly and hassle-free. 

Submit a Bond Application

To speed up the bonding process, we have a simple online application form. You just have to submit general details about yourself and your business, as well as the type of bond you need. 

Get the Best Quote

We process most bond quotes quickly, but you may receive your quote within 24 to 48 hours, depending on the complexity of your application. We take care to ensure you get the best rate possible for your business.

Pay Your Bond Premium

Once you pay the bond premium, you can fill out the bond requirement form. All dealer forms are available on the Motor Vehicle Division website. We’ll email you a copy of your bond, but we can also send a physical copy if necessary.

There are three types of bonds you may need in Montana. If you sell new or used vehicles or sell vehicles at wholesale or auction, you must get a $50,000 bond. If you only sell motorcycles and quadricycles, you must carry a $15,000 bond. Finally, if you sell small vehicles that don’t go on the highway (including watercraft), the bond amount is only $5,000.

You must be bonded to get your motor vehicle dealer license from the Montana Department of Justice Motor Vehicle Division.

Montana divides dealer license renewals into four quarters. Your renewal will fall into one of these quarters depending on when you were approved. The dates are as follows: 

• 1st Quarter - Renewal paperwork is due by February 15th. If not renewed, dealer licenses expire by March 31st. 
• 2nd Quarter - Paperwork is due by May 15; the license expires June 30th if not renewed. 
• 3rd Quarter - Paperwork is due by August 15th; the license expires September 30th if not renewed. 
• 4th Quarter - Paperwork is due by November 15; the license expires December 31st if not renewed. 

To renew your auto dealer license, you must have an active and valid bond. Most bonds are valid for 12 months, but you’ll likely have to renew your bond before it expires so you can submit your paperwork on time. 

Montana surety bonds are designed to protect consumers from fraudulent business practices. In some cases, a customer may file a claim against the bond for various reasons. 

What happens is that the claimant (customer) files a claim with the surety company (e.g. Lance Surety Bonds). The surety investigates the claim to determine if the accusations are valid. If they are, the surety may pay the claimant financial damages up to the full bond amount. 

As the bond principal, you’re liable to reimburse any payments the surety makes to a claimant.

Montana categorizes motor vehicle dealers into multiple types, including new, used, wholesale, auction, and manufactured homes. When trying to get your Montana dealer license, you may fall into a single category, or your business might fit into multiple categories (e.g., selling new and used cars). 

The state also sets certain business requirements, such as having a computer and printer connected to the internet so you can print temporary registration permits (TRPs). In addition to these requirements, you must be bonded. Most dealers must carry a $50,000 bond, but there are exceptions. 

You can find out more about these requirements on the Department of Motor Vehicle website.