Dealer Surety Bond in Utah: $10,000–$100,000 Requirement
Utah 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 Utah
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 Utah
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
Utah-Specific Note
Utah-Specific Facts for Dealer Surety Bond
Utah Vehicle transfer fees and requirements
In Utah, the title transfer fee is $6 and registration costs $44 - $150+ depending on vehicle age and type. Vehicle sales are subject to 6.1% state sales tax plus local taxes (up to ~8.5%). Utah does not require notarization for private-party vehicle transfers. Emission testing is required in Utah — verify the vehicle passes before completing the sale.
- Safety and emissions inspection required in Cache, Davis, Salt Lake, Utah, and Weber counties
- Title transfer at DMV within 48 hours of sale
- Age-based registration fee structure
Official Utah bill of sale form
The official Utah bill of sale form is TC-656 (Bill of Sale). BillOfSaleNow generates a document that meets all Utah requirements and can be used in place of the official form.
Utah sales tax on vehicle purchases
Utah has a 6.1% state sales tax rate. 6.1% state plus local taxes (total up to ~8.5%). Private-party vehicle sales in Utah are subject to sales tax. Sales tax applies to private party vehicle purchases. The title transfer fee is $6.
Utah bill of sale statistics
BillOfSaleNow has generated 901 bill of sale documents for Utah transactions, with 24 generated this month alone. The most popular vehicle type is car.
More Utah Vehicle Guides
- Car Buy-Back Program in Utah
- Car Buyer Remorse in Utah
- Car Lease Buyout in Utah
- Car Loan Default in Utah
- Car Loan Refinance in Utah
- Car Recall Process in Utah
Each guide is written specifically for Utah laws, agencies, and procedures. Bookmark for future reference.
Frequently Asked Questions
How much is a dealer surety bond in Utah?
Utah 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 Utah?
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 Utah?
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 Utah 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 Utah?
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.