Dealer Surety Bond in Washington: $10,000–$100,000 Requirement
Washington 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 Washington
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 Washington
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
Washington-Specific Note
Washington-Specific Facts for Dealer Surety Bond
Washington Vehicle transfer fees and requirements
In Washington, the title transfer fee is $12 and registration costs $30 plus RTA tax in certain areas. Vehicle sales are subject to 6.5% state sales tax plus local taxes (up to ~10.4%). Washington does not require notarization for private-party vehicle transfers. Emission testing is required in Washington — verify the vehicle passes before completing the sale.
- Department of Licensing (DOL) handles titles and registration
- Emissions testing required in parts of King, Pierce, Snohomish, Clark, and Spokane counties
- Use tax applies to private party purchases
- Electric vehicle fee of $225 per year
Washington sales tax on vehicle purchases
Washington has a 6.5% state sales tax rate. 6.5% state plus local taxes (total up to ~10.4%). Private-party vehicle sales in Washington are subject to sales tax. Use tax applies to private party vehicle purchases. The title transfer fee is $12.
Washington bill of sale statistics
BillOfSaleNow has generated 2,241 bill of sale documents for Washington transactions, with 60 generated this month alone. The most popular vehicle type is car.
More Washington Vehicle Guides
- GAP Insurance Claim in Washington
- Government Surplus Vehicle in Washington
- Hit-and-Run Vehicle Claim in Washington
- Hold Harmless Vehicle Sale in Washington
- Insurance Required to Register in Washington
- Junk Title Conversion in Washington
Each guide is written specifically for Washington laws, agencies, and procedures. Bookmark for future reference.
Frequently Asked Questions
How much is a dealer surety bond in Washington?
Washington 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 Washington?
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 Washington?
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 Washington 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 Washington?
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.
Ready to Document Your Vehicle Sale?
Create a legally compliant Washington bill of sale in minutes.
Generate Bill of SaleSource: State DMV Dealer Licensing Division. Verify current bond amounts with your state DMV before purchasing.