Any person that wishes to become a licensed motor vehicle dealer in the state of Utah must submit a surety bond as part of their licensing requirements, per the Utah State Tax Commission – Motor Vehicle Enforcement Division. This surety bond guarantees that the principal observes and complies with all requirements and provisions of The Motor Vehicle Business Regulation Act, as provided by Chapter 3, Title 41, Utah Code Annotated.
Bond amounts vary per each license type:
- Motor Vehicle Dealer Bond – $75,000
– New or used motor vehicles dealers
– Large trailer dealers
- Motorcycle/OHV/Small Trailer Dealer Bond – $10,000
– Small trailers are trailers between 750-1,999 lbs. unladen weight.
- Dismantler and Crusher License Bond – $10,000
- Body Shop License Bond – $20,000
If an individual suffers a loss due to unethical or unlawful actions by the principal, the surety will reimburse the affected individual up to the full penal sum of the bond. The principal is then required to reimburse the surety for all damages paid out.
Pacific Surety offers industry low rates and can obtain approvals for almost all credit situations. Once our simple application has been completed, we can have pricing to you within hours. If you have any specific questions, please contact our knowledgeable underwriting staff.
Surety Bond Name
Motor Vehicle Dealer Surety Bonds – Utah
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