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
Ohio-Specific Facts for Dealer Surety Bond
Ohio Vehicle transfer fees and requirements
In Ohio, the title transfer fee is $15 and registration costs $31 per year plus county permissive taxes. Vehicle sales are subject to 5.75% state sales tax plus county taxes (up to 8%). Notarization is required for vehicle bill of sale documents in Ohio. Emission testing is required in Ohio — verify the vehicle passes before completing the sale.
- Notarized title required for transfer
- E-check emissions testing in Cleveland and Akron areas
- Title transfer at BMV within 30 days
- Physical damage disclosure required
Official Ohio bill of sale form
The official Ohio bill of sale form is BMV 3774 (Bill of Sale for a Motor Vehicle). BillOfSaleNow generates a document that meets all Ohio requirements and can be used in place of the official form.
Ohio sales tax on vehicle purchases
Ohio has a 5.75% state sales tax rate. 5.75% state plus county taxes (total up to 8%). Private-party vehicle sales in Ohio are subject to sales tax. Sales tax applies to private party vehicle purchases. The title transfer fee is $15.
Ohio bill of sale statistics
BillOfSaleNow has generated 2,847 bill of sale documents for Ohio transactions, with 77 generated this month alone. The most popular vehicle type is car.
More Ohio Vehicle Guides
- Car Recall Process in Ohio
- Car Title Transfer Fees in Ohio
- Car Totaled Insurance Payout in Ohio
- Cash for Cars / Junk in Ohio
- Certified Pre-Owned Rules in Ohio
- Curbstoning Laws in Ohio
Each guide is written specifically for Ohio laws, agencies, and procedures. Bookmark for future reference.
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.
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Generate Bill of SaleSource: Ohio Bureau of Motor Vehicles. Verify current bond amounts with your state DMV before purchasing.