Dealer Surety Bond in Illinois: $10,000–$100,000 Requirement
Illinois 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 Illinois
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 Illinois
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
Illinois-Specific Note
Illinois-Specific Facts for Dealer Surety Bond
Illinois Vehicle transfer fees and requirements
In Illinois, the title transfer fee is $150 and registration costs $151 per year. Vehicle sales are subject to 6.25% state tax on private sales; local taxes may add 1-4%. Illinois does not require notarization for private-party vehicle transfers. Emission testing is required in Illinois — verify the vehicle passes before completing the sale.
- Emissions testing required in Chicagoland and Metro-East St. Louis areas
- Private vehicle use tax applies based on purchase price
- Title transfer within 20 days of sale
- RUT-50 form required for private party purchases
Illinois sales tax on vehicle purchases
Illinois has a 6.25% state sales tax rate. 6.25% state plus 1–4% local taxes. Private-party vehicle sales in Illinois are subject to sales tax. Private vehicle use tax applies based on purchase price bracket. The title transfer fee is $150.
Illinois bill of sale statistics
BillOfSaleNow has generated 3,087 bill of sale documents for Illinois transactions, with 83 generated this month alone. The most popular vehicle type is car.
More Illinois Vehicle Guides
- Dealer Doc Fee in Illinois
- Dealer Fraud Claim in Illinois
- Dealer Prep Fees in Illinois
- Vehicle Deposit Refund in Illinois
- Sell Car With Suspended License in Illinois
- EV Tax Credit in Illinois
Each guide is written specifically for Illinois laws, agencies, and procedures. Bookmark for future reference.
Frequently Asked Questions
How much is a dealer surety bond in Illinois?
Illinois 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 Illinois?
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 Illinois?
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 Illinois 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 Illinois?
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.