Oklahoma Auto Dealer Bond

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Oklahoma Auto Dealer Bond: A Comprehensive Guide

This guide provides information for insurance agents to help pre-owned car dealership owners on Oklahoma Auto Dealer bonds

At a Glance:

  • Lowest Cost: $200 for a two-year term or $9 per month, based on the business owner’s credit
  • Bond Amount:
    • $1,000 for used motor vehicle salespersons
    • $15,000 for used motor vehicle rebuilders
    • $25,000 for used motor vehicle retail and wholesalers
    • $50,000 for used motor vehicle auctioneers
  • Who Needs It: All individuals and businesses that sell or deal in motor vehicles
  • Purpose: To ensure the public will receive compensation for any damages should the auto dealer fail to comply with dealer licensing law
  • Who Regulates Dealers in Oklahoma: Oklahoma Used Motor Vehicle and Parts Commission


Oklahoma Statutes 47-583 mandates used auto dealers operating in the state to obtain a motor vehicle dealer license. The Oklahoma legislature enacted the certificate and regulations to ensure that dealers engage in ethical business practices and remit required taxes and fees. In order to provide financial security for the enforcement of the certificate law, dealers must purchase and maintain either a $15,000, $25,000 or $50,000 motor vehicle dealer surety bond to be eligible for licensure.

What is the Purpose of the Oklahoma Auto Dealer Bond?

Oklahoma requires used motor vehicle dealers to purchase the Motor Vehicle Dealer Bond as part of the application process for the Used Motor Vehicle Dealer License. The bond ensures that the public will receive compensation for financial harm if the auto dealer fails to comply with the licensing regulations and that the dealer will pay all required taxes and fees to the State of Oklahoma. In short, the bond is a type of insurance that protects the public if the dealer breaks licensing laws.

How Can an Insurance Agent Obtain an Oklahoma Auto Dealer Bond?

BondExchange makes obtaining an Oklahoma Auto Dealer Bond easy. Simply login to your account and use our keyword search to find the “auto dealer” bond in our database. Don’t have a login? Gain access now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone (800) 438-1162, email, or chat from 7:30 AM to 7:00 PM EST to assist you.

At BondExchange, our 40 years of experience, leading technology, and access to markets ensure that we have the knowledge and resources to provide your clients with fast and friendly service whether obtaining quotes or issuing bonds.

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How Much Does the Oklahoma Auto Dealer Bond Cost?

The $25,000 Oklahoma Motor Vehicle Dealer surety bond can cost anywhere between $175 to $4,375 for the required two-year period. Insurance companies determine the rate based on a number of factors including your customer’s credit score and experience. We also offer easy interest-free financing for premiums over $500. The chart below offers a quick reference for the approximate bond cost on the $25,000 bond requirement.

$25,000 Oklahoma Auto Dealer Bond Cost

Credit Score* Bond Cost (2 year) Bond Cost (1 month)
749+ $175 $9
699 – 748 $219 $11
660 – 698 $274 $14
649 – 659 $438 $22
629 – 648 $481 $25
619 – 628 $525 $27
600 – 618 $656 $33
580 – 599 $1,750 $88
570 – 579 $2,756 $138
500 – 569 $4,375 $219

*The credit score ranges do not include other factors that may result in a change to the annual premium offered to your customers, including but not limited to, years of experience and underlying credit factors contained within the business owner’s credit report.

How Does Oklahoma Define “Motor Vehicle Dealer”?

To Paraphrase Oklahoma Statute 47-581, a used motor vehicle dealer is any person or business entity who buys, sells, exchanges, rents, or brokers the sale of motor vehicles either directly or indirectly. Exemptions to this definition include:

  • Any person acting under a court order
  • Public officials performing official duties
  • Mortgagees/secured parties coming into possession of a motor vehicle as collateral and do not make a profit off of the sale of the vehicle
  • An auctioneer representing an estate auction or liquidation
  • Auctioneer running an auction at a licensed dealership and auctions 4 or fewer motor vehicles
  • Any firm selling motor vehicles in a liquidation attempt

Oklahoma Auto Dealer Bond

BondExchange now offers monthly pay-as-you-go subscriptions for surety bonds. Your customers are able to purchase their bonds on a monthly basis and cancel them anytime. Learn more here.

How Do Dealers Apply for a Motor Vehicle Dealer License in Oklahoma?

The process for applying for a motor vehicle dealer license in Oklahoma is pretty complex. Below are the general guidelines, but dealers should refer to the Oklahoma Used Motor Vehicle and Parts Commission’s website for details on the process.

License Period – The Oklahoma dealer license expires December 31 of each odd-numbered year regardless of the date of issuance (2021, 2023, 2025, etc).

Step 1 – Determine the License Type

Oklahoma requires dealers to obtain specific licenses corresponding to the nature in which the dealer’s business operates. Keep in mind that dealers will need to acquire a license for each type of business they wish to operate. Below are the different types of Oklahoma used dealer licenses.

    • Dealer – Sells used motor vehicles retail
    • Wholesale Dealer – Sells used motor vehicles wholesale
    • Rebuilder – Rebuilds repairable motor vehicles
    • Dismantler – Dismantles used motor vehicles and recycles the parts
    • Salesperson – Sells used motor vehicles for a licensed dealer
    • Crusher – Crushes/destroys used motor vehicles

***The below steps focus on the application process for the retail dealer license. While many of the steps for the retail license are required for other dealers, readers can click on the name of each dealer type above to view the application requirements for each specific dealer license***

Step 2 – Establish a Location

Dealers are required to establish a permanent place of business that meets the following minimum requirements:

    • Be an enclosed building that is separate from other businesses, is used for commercial purposes only, and has a public restroom
    • Have a permanently affixed sign that is a least 32 square feet, visible from the nearest roadway, and contains the business name in letters at least 6 inches in height
    • Have a useable phone that is listed in the local directory in the business name

Step 3 – Obtain Zoning Approval

Dealers must obtain written approval from their local zoning authority certifying that their business location is in compliance with all applicable zoning requirements

Step 4 – Obtain Insurance

Dealers are required to purchase and maintain garage liability insurance with a single limit of $25,000 and must submit their certificate of insurance with their dealer application.

Step 5 – Purchase a Surety Bond

Dealers must purchase and maintain a $25,000 used motor vehicle dealer surety bond. The bond must run concurrently with the license period and expire on December 31st of each odd-numbered year (i.e. 2021, 2023, 2025, etc.)

Step 6 – Complete Dealer Education

Dealers must attend a dealer education program that is held from 9 am to 12:30 pm on the second Monday of each month and is held at the following address:

421 NW 13th Street, Suite 330
Oklahoma City, OK 73103

Only one individual listed on the application is required to attend.

Step 7 – Complete the Application

All new dealer regulatory license and renewal applications should be mailed to the following address:

Used Motor Vehicle and Parts Commission
421 NW 13th Street, Suite 330
Oklahoma City, OK 73103

    • 7.a Personal History Questionnaire – Applicants must provide all the necessary information in the personal history questionnaire section of the application
    • 7.b Driver’s License – Dealers must submit their Oklahoma driver’s license with their application
    • 7.c OSBI Report – Dealers must submit a background report from the Oklahoma State Bureau of Investigations (OSBI) with their application. Dealers can obtain this report by contacting the OSBI at (405) 848-6724 or by visiting their website here.
    • 7.d Financial Statement – Dealers must submit a financial statement with their application indicating their net worth. The Financial Statement form is included in the application.
    • 7.e Certificate of Good Standing – Dealers are required to submit either a current Certification of Incorporation/LLC or a Current Certificate of Good Standing with the Oklahoma Secretary of State who can be reached at (405) 521-3911
    • 7.f Pictures – Dealers must submit photographs of their entire business location, including their sign, with their application
    • 7.g Condition of Sale Forms – Dealers are required to submit sample condition of sale forms with their application. Dealers will obtain these forms at the dealer education course
    • 7.h Salesperson – Any person directly selling motor vehicles at the dealership must be a licensed salesperson and maintain a $1,000 bond. Applicants can submit the Salesperson Application with their dealer application.

Step 8 – Pay Fees

The following fees are associated with obtaining the used retail dealer license:

    • $600 application fee
    • $200 application fee for franchised used motor vehicle dealers
    • $200 application fee for each secondary location

Step 9 – Pass Inspection

A Commission Inspector will contact the dealer to schedule a time to conduct an inspection of the dealer’s business location

How Do Oklahoma Auto Dealers Renew Their License?

Dealers can mail their renewal application, including all required documentation and fees, to the following address:

Used Motor Vehicle and Parts Commission
421 NW 13th Street, Suite 330
Oklahoma City, OK 73103

The Oklahoma dealer license expires December 31 of each odd-numbered year regardless of the date of issuance (2021, 2023, 2025, etc).

What Are the Insurance Requirements for the Oklahoma Auto Dealer License?

The State of Oklahoma requires dealers to obtain garage liability insurance with a single limit of $25,000. Dealers must file either a $1,000, $15,000, $25,000 or $50,000 motor vehicle dealer surety bond.

How Do Oklahoma Auto Dealers File Their Bond?

Dealers should mail the completed bond form, including the power of attorney, to the following address:

Used Motor Vehicle and Parts Commission
421 NW 13th Street, Suite 330
Oklahoma City, OK 73103

All Oklahoma Auto Dealer surety bonds require signatures from both the surety company that issues the bond and the auto dealer. The bond form will require the following items:

  • Legal name and address of entity/individual(s) buying the bond
  • Date the bond goes into effect
  • State the Surety operates in

How Can Oklahoma Auto Dealers Avoid Bond Claims?

To avoid claims on the Motor Vehicle Dealer Bond, dealers must follow all dealer regulations in the state, including some of the most important issues below that, tend to cause claims:

  • Do not engage, or allow representatives of the business to engage, in any acts of fraud
  • Pay sellers of vehicles promptly and in full\
  • Do not engage in any illegal selling practices

What Other Insurance Products Can Agents Offer Dealers in Oklahoma?

Oklahoma requires dealers to obtain garage liability insurance on all vehicles with dealer plates. Bonds are our only business at BondExchange, so we do not issue any form of liability insurance, but our agents often utilize brokers for this specific line of business. A list of brokers in this space can be found here.

How Can Insurance Agents Prospect for Oklahoma Auto Dealer Customers?

Oklahoma conveniently provides a public database to search for active motor vehicle dealers in the state. The database can be accessed here. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.

What Other States Require Auto Dealer Bonds?

All 50 states and the District of Columbia require auto dealers to obtain an Auto Dealer Bond as a prerequisite for licensure. Insurance agents should utilize our Main MVD Page for a detailed analysis of the Auto Dealer Bond requirements nationwide.

Oklahoma Auto Dealer Bond