Oregon Auto Dealer Bond

An Oregon Auto Dealer Bond costs as little as $500.

Licensed auto dealers selling new or used vehicles in Oregon must hold an Auto Dealer Bond of at least $50,000. However, to get this bond, you do not need to pay the full bond amount. Instead, the surety agency charges a small percentage of the bond amount, generally ranging from 1% to 10%.

This percentage is known as a bond rate or bond premium. The bond rate an auto dealer can secure is heavily dependent on credit score. 

An Oregon Auto Dealer Bond is a form of credit that is extended to your dealership. Therefore, your bond rate will be higher if you have had issues with your credit in the past (bankruptcy, court judgments, tax liens, etc.).

Beyond good credit, other factors that can positively impact your bond rate include:

• Business Experience – Either owning a dealership or working in the auto industry.
• Bonding History – You have held previous bonds with no claims made against them.
• Surety Company – Larger and more established sureties tend to offer the lowest rates. At JW Surety Bonds, we are able to offer the lowest rates in the industry due to the large volume of bonds we underwrite. 

1. Apply For Your Bond

Fill out an online application to get an instant bond quote. 

The form only takes minutes to complete and sends a quote directly to your inbox. Alternatively, you can call one of our bonding experts at 888-592-6631.

With either application method, you will need the following information: 

• Bond Name (Oregon Auto Dealer Bond)
• Bond Amount 
• Your Contact Information
• Auto Dealer Licensing Number (if available)

2. Get a Quote

A soft credit check is used to determine your bond rate. If you apply online, the quote will be sent directly to your inbox a few minutes after you submit your application. 

If you want to provide supplementary information, such as industry experience, please get in touch with one of our bonding experts. 

We recently had an auto dealer, Ryan, who moved from Florida to Oregon. He applied with us because his previous surety wasn’t licensed to issue Oregon bonds. His quoted rate was already low due to his good credit score. However, after he provided proof of his 10+ years of industry experience, we were able to lower it further. 

3. Purchase Your Bond

Log in to our website to purchase your bond at your quoted rate. Fill out the forms and pay your invoice.

When your payment clears, a copy of your bond will be emailed to you. Please double-check that all information is correct. The original surety bond will be sent via mail.

All Oregon auto dealers must have an Auto Dealer Bond to get licensed through the Oregon Department of Transportation (ODOT). Oregon auto dealers are defined as individuals or entities that:

• Engage in purchasing, selling, brokering, or trading of vehicles for a profit
• Display new or used vehicles for sale
• Act as an agent for owners of vehicles to complete a purchase or sale

In any bond amount, this type of Oregon surety bond helps protect customers who work with a licensed dealership. If a sale involves illegal business practices or fraudulent activity, a customer can make a claim against an auto dealer to cover financial damages.

An Oregon Auto Dealer Bond is a contract between three parties:

• Principal – the auto dealer that needs to get bonded.
• Obligee – the party requiring the principal to get bonded (ODOT).
• Surety – the surety company issuing and financially backing the bond (ex. JW Surety Bonds).

Oregon Auto Dealer Bonds need to be renewed every three years. 

Oregon auto dealer licenses have a three-year term and must be renewed at the end of that term. Auto Dealer Bonds in OR have the same term as the license, which means the bond premium may be prorated depending on when the bond is secured. 

Oregon auto dealer bonds are renewed through the surety company that initially issued the bond. That company should send you a renewal notice at least one month before your bond expires.

An investigation process follows every bond claim made in Oregon. If you are the bond holder, you will be contacted for information to use in your defense. This inquiry is mainly looking at:

• Claim validity – Is the claim true? This helps you avoid paying for false claims.
• Claim coverage – Is the claim covered by your bond? 

In the event that a successful claim is made against a bond, the surety initially pays it. However, the Principal is then required to pay them back in full, plus any legal fees. 

See our Bond Claims Guide for more information.

To get an Oregon auto dealer license, you will need an Oregon auto dealer bond. Other information, assets, and documents that you will need to apply include: 

• Type of License – Choose your license type(s):
  • New Motor Vehicle Dealer
  • Used Motor Vehicle Dealer
  • Motorcycle, Moped, Snowmobile and/or ATV Dealer
• Business Location – Permanent location where you will display your vehicles. 
• Insurance – Must include liability insurance. 
• Pre-licensing Course – Completion certificate to show that you have taken an approved dealer course. 
• Application Fees – All forms must be submitted with the required fees. This includes the license fee, but may also include license plate fees and additional location fees.