Oregon Auto Dealer Bond

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What is an Oregon auto dealer bond?

Oregon Driver & Motor Vehicle Services requires auto dealers to be licensed and bonded. An Alabama auto dealer bond holds dealers accountable to the law and industry regulations. If a dealer causes a customer financial harm by breaking the law, the customer can file a claim against the bond for compensation.

The following licensees must post a bond:

Get Your Auto Dealer Bond:

Why do auto dealers in Oregon need an auto bond?

Motor vehicle dealer bonds ensure dealers and dealerships operate ethically and legally. If they break the law (by acting dishonestly, for example), the injured party can file a claim against your bond to recoup any losses. Customer complaints can become claims if you don’t address them quickly. While claims are rare, they can cost you a lot of money – up to the total amount of your surety bond.

What do Oregon auto dealer bonds cost?

Auto dealer bond premiums can vary based on applicants’ credit scores: the higher your credit score, the lower your annual premium. If you have excellent credit, expect to pay as little as 1% or less of the total bond amount. Other factors that may impact the cost of your bond include your industry experience and business and personal financials. 

ZipBonds can offer Oregon motor vehicle dealer bonds for as low as:

  • $400 for a $50,000 bond
  • $100 for a $10,000 bond

How to Get Your Oregon Auto Dealer License

Follow this general process to apply for your motor vehicle dealer license with the Oregon DMV.

  • Fill out an application form. Include your completed application, plate billing list, surety bond, liability insurance certificate, education certificate (see below), and required fees.
  • Send your packet by mail or deliver it in person to the DMV headquarters (addresses listed below). Applications take anywhere from 6-8 weeks to process.
  • Obtain 8 hours of pre-licensing education from an approved provider.

Deliver In Person:

  • DMV Business Regulation Section
  • East Annex Building
  • 1965 Lana Ave NE
  • Salem, OR 97314

Send by Mail:

  • Business Regulation
  • 1905 Lana Ave NE
  • Salem, OR 97314

Frequently Asked Questions

The Oregon Department of Motor Vehicles regulates the industry (licensing and bonding).

Once you’ve purchased your motor vehicle dealer bond, remember to renew it before its expiration date each year. If you’re buying your bond from us, we’ll send a reminder when the expiration date is approaching. That way, you’ll have plenty of time to renew your bond and maintain your business license.

A customer can file a claim if a dealer commits fraud or unethical or unlawful business activity. If the claim is valid, the surety may cover the customer’s losses up to the total amount of the bond. The dealer will then need to pay back the surety for the damages.

Claims can be costly and damage your reputation and ability to get licensed and bonded again, so it’s best to do everything you can to avoid them.

Avoid illegal activities and fraudulent business practices to prevent claims on your bond. Pay all taxes you owe. Also, ensure you comply with your licensing regulations. If a customer complains about something, address the issue immediately to avoid complaints from turning into costly claims.

Operating without a bond, which is illegal for auto dealers in Oregon, could suspend your license. You could also face hefty fines and jail time.

How to Get Your Oregon Auto Dealer Bond

ZipBonds offers the fastest and most secure option for getting auto dealer bonds. Our all-digital platform is intuitive and straightforward. Apply online or call us at (888) 435-4191 to speak with an agent directly. Many of our bonds can be processed and issued immediately online.


About ZipBonds.com

Founders Ryan Swalve and Zach Mefferd formed the vision for ZipBonds.com when they realized how overly complicated it was to help clients place surety. The frustration of being unable to incorporate the technology they’d used in other insurance-focused projects left them thinking “there has to be a better way.”

Fast forward a couple of years, and that better way is the impetus of everything we do at ZipBonds. We constantly look for innovative ways to improve the bonding process for our clients and agents. Our team comprises individuals who understand all angles of surety – for companies, agencies, and individuals. Incorporating everyone’s point of view to improve the process while simultaneously integrating cutting-edge technology is what sets our business apart.