Dealer Bonds

Automotive dealers in California must obtain dealer bonds as part of their licensing requirements to legally operate their businesses. These specialized bonds protect consumers and the state when dealers fail to meet their legal obligations or engage in fraudulent practices.

Dealer bonds provide financial guarantees that dealers will comply with California regulations governing automotive sales, financing, and customer interactions. If a dealer violates these requirements and causes financial harm to customers, the bond provides compensation up to the bond amount.

California's dealer bond requirements vary based on the type of dealership and business operations. New car dealers, used car dealers, and specialty vehicle dealers each have specific bond requirements that must be maintained as a condition of their business licenses.

Bond amounts and costs depend on various factors including the dealer's business volume, location, and operational history. San Bernardino area dealers need to work with bonding companies that understand California's specific requirements and can provide the appropriate bond coverage for their business type and size.