A $10,000 Surety Bond of Motorcycle Dealer, Motorcycle Lessor-Retailer, ATV Dealer or Wholesale –Only Dealer (Vehicle Code Sections 11612, 11710 and 11710.1) is different than the $50,000 California Dealer Bond (Vehicle Code Section 11710) mentioned in the previous post.
Key differences are the nature of the dealership, the bond amount, and the number of vehicles sold. This bond covers motorcycles dealers or lessors, wholesale vehicle dealers, and ATV dealers with sales of less than 25 vehicles a year. The premium ranges from $100 to $2,500 based on the principal’s credit. The CA Wholesale MVD is not always required to be renewed after the first year.
The three parties of a California Motor Vehicle Dealers Bond:
- Obligee: State of California Department of Motor Vehicles – Licensing Operations Division, Occupational Licensing Branch, P.O. Box 932342, MS:L224, Sacramento, CA 94232-3420
- Principal: The Wholesale Motor Vehicle Dealer
- Surety: The Surety Company
The State of California maintains a list of all vehicle dealerships in an online database that is free and open to the public. Utilize the website to search by city to find all registered dealerships in a specific area that may need services with shopping rates for their surety bond.