Washington Motor Vehicle Dealer License Bond

If you are engaging in the business of auctioning, buying or selling, either wholesale or retail, new or used cars, trucks, motorhomes, vessels, manufactured homes or trailers or any other miscellaneous vehicle as determined by the state you may be required to be licensed as a Motor Vehicle dealer and post a motor vehicle dealer surety bond. For more detailed information you can check with the WA State Department of Licensing to verify the specific license type you will need.

License TypeDescriptionBond Amount Required
Motor Vehicle DealersNew and or used cars, trucks or motor homes$30,000 per location
Manufactured Home and or Travel Trailer DealersNon-Motorized Mobile Homes, Park Trailers or Travel Trailers$30,000 per location
Vessel DealerWatercraft (excludes human-powered watercraft)$5,000 per location
Miscellaneous Vehicle DealerMotorcycles, Neighborhood Electric Vehicles, Off Road Vehicles, utility, boat, tent and horse trailers or any other unclassified motor vehicle or trailer$5,000 per location
Motor Vehicle ManufacturerManufactures or Assembles New Vehicles, Re-Manufactures Used Vehicles for transfers to dealerships in WA for Resale or is a vehicle factory branch, representative or distributor$40,000 for manufacturer of only manufactured homes
$20,000 if you only manufacture travel trailers, including 5th wheels

Why do I need a Washington Motor Vehicle Dealer License Bond?

The surety bond which must be in the name as you have applied for the license with the state and guarantees to the state that the dealership and its owners will comply and conform with the provisions of RCW 46.70.070 for Motor Vehicle, Manufactured Home or Vessel Dealers or RCW 46.70.075 for Motor Vehicle Manufacturers.  A failure of the Dealers or Manufacturer can result in a claim against the surety bond.

Similar business types that require a surety bond are Registered Tow Truck Drivers and Wreckers.