Dealer Surety Bond in Connecticut: $10,000–$100,000 Requirement
Connecticut requires all licensed dealers to maintain a $10,000–$100,000 surety bond. Here is exactly what you need, what it costs, and what happens when a claim is filed.
Bond Requirement at a Glance
Amount varies by state and dealer license category. Contact your state DMV for the exact requirement.
Who Needs a Surety Bond in Connecticut
Most states require a surety bond as a condition of obtaining and maintaining a dealer license.
- New vehicle dealer
- Used vehicle dealer
- Wholesale dealer
- Motorcycle dealer
How to Get a Bond in Connecticut
Where to get it: Any state-licensed surety company
Use the state DMV-approved bond form. File with your dealer license application.
Annual Premium Cost
0.5%–3% of bond face value per year
Premium is based on your personal credit score. Good credit = lower annual cost.
How Claims Work
Injured buyer files with state DMV or directly with the surety company.
Valid claims are paid up to the bond face value. Dealer must reimburse the surety for any paid claims.
Penalties for Operating Without a Bond
Connecticut-Specific Note
Connecticut-Specific Facts for Dealer Surety Bond
Connecticut Vehicle transfer fees and requirements
In Connecticut, the title transfer fee is $25 and registration costs $80 for 2-year registration. Vehicle sales are subject to 6.35% sales tax on vehicle purchases. Connecticut does not require notarization for private-party vehicle transfers. Emission testing is required in Connecticut — verify the vehicle passes before completing the sale.
- Emissions testing required biennially
- VIN verification required for out-of-state vehicles
- Title transfer must occur within 60 days
Official Connecticut bill of sale form
The official Connecticut bill of sale form is H-31 (Bill of Sale for a Motor Vehicle). BillOfSaleNow generates a document that meets all Connecticut requirements and can be used in place of the official form.
Connecticut sales tax on vehicle purchases
Connecticut has a 6.35% state sales tax rate. Flat 6.35% statewide; no additional local taxes. Private-party vehicle sales in Connecticut are subject to sales tax. Sales tax applies to private party sales. The title transfer fee is $25.
Connecticut bill of sale statistics
BillOfSaleNow has generated 876 bill of sale documents for Connecticut transactions, with 24 generated this month alone. The most popular vehicle type is car.
More Connecticut Vehicle Guides
- Car Totaled Insurance Payout in Connecticut
- Cash for Cars / Junk in Connecticut
- Certified Pre-Owned Rules in Connecticut
- Curbstoning Laws in Connecticut
- Dealer Doc Fee in Connecticut
- Dealer Fraud Claim in Connecticut
Each guide is written specifically for Connecticut laws, agencies, and procedures. Bookmark for future reference.
Frequently Asked Questions
How much is a dealer surety bond in Connecticut?
Connecticut requires a $10,000–$100,000 surety bond for licensed dealers. Amount varies by state and dealer license category. Contact your state DMV for the exact requirement.
Who requires a dealer surety bond in Connecticut?
State DMV or Motor Vehicle Division requires the bond. Most states require a surety bond as a condition of obtaining and maintaining a dealer license.
How much does a dealer surety bond cost annually in Connecticut?
Expect to pay 0.5%–3% of bond face value per year. Premium is based on your personal credit score. Good credit = lower annual cost.
What happens if a Connecticut dealer doesn't have a surety bond?
Dealer license denial, suspension, or revocation. Possible criminal charges for operating without a bond.
How does a surety bond claim work in Connecticut?
Injured buyer files with state DMV or directly with the surety company. Valid claims are paid up to the bond face value. Dealer must reimburse the surety for any paid claims.
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Generate Bill of SaleSource: State DMV Dealer Licensing Division. Verify current bond amounts with your state DMV before purchasing.