Dealer Surety Bond in Ohio: $25,000 Requirement
Ohio requires all licensed dealers to maintain a $25,000 surety bond. Here is exactly what you need, what it costs, and what happens when a claim is filed.
Bond Requirement at a Glance
Required for licensed dealers. Motor vehicle salvage dealers require a separate $50,000 bond.
Who Needs a Surety Bond in Ohio
All new and used vehicle dealers, wholesale dealers, and auction operators must maintain an active surety bond.
- New vehicle dealer
- Used vehicle dealer
- Wholesale dealer
- Auction operator
- Salvage dealer
How to Get a Bond in Ohio
Where to get it: Any Ohio-licensed surety company. Common: Merchants Bonding, Granite Re, Philadelphia Indemnity
Ohio BMV Form BMV 3777 is the approved dealer bond form. Effective date must match license start date.
Annual Premium Cost
$125–$375/year
Ohio dealers can often get multi-year bonds at a discount — 2-year bonds save ~15% vs two annual premiums.
How Claims Work
Claim filed with Ohio AG Consumer Protection or directly with surety. Ohio BMV may revoke license pending investigation.
Ohio has a separate Dealer Recovery Fund for buyers harmed by insolvent dealers where surety is exhausted.
Penalties for Operating Without a Bond
Ohio-Specific Note
Frequently Asked Questions
How much is a dealer surety bond in Ohio?
Ohio requires a $25,000 surety bond for licensed dealers. Required for licensed dealers. Motor vehicle salvage dealers require a separate $50,000 bond.
Who requires a dealer surety bond in Ohio?
Ohio Bureau of Motor Vehicles (BMV) Dealer Licensing requires the bond. All new and used vehicle dealers, wholesale dealers, and auction operators must maintain an active surety bond.
How much does a dealer surety bond cost annually in Ohio?
Expect to pay $125–$375/year. Ohio dealers can often get multi-year bonds at a discount — 2-year bonds save ~15% vs two annual premiums.
What happens if a Ohio dealer doesn't have a surety bond?
License suspension or revocation; misdemeanor of the 1st degree; civil fine up to $1,000/day.
How does a surety bond claim work in Ohio?
Claim filed with Ohio AG Consumer Protection or directly with surety. Ohio BMV may revoke license pending investigation. Ohio has a separate Dealer Recovery Fund for buyers harmed by insolvent dealers where surety is exhausted.
Ready to Document Your Vehicle Sale?
Create a legally compliant Ohio bill of sale in minutes.
Generate Bill of SaleSource: Ohio Bureau of Motor Vehicles. Verify current bond amounts with your state DMV before purchasing.