Washington Motor Vehicle Bonds Guide
If you are applying for a motor vehicle business license in Washington, you'll need to purchase a surety bond. Read on to learn all about the bonding process in this guide.
Bond Overview
- Purpose: To guarantee licensed professionals follow all state laws and regulations
- Who Needs It: Motor vehicle wreckers, trailer and mobile home manufacturers, tow truck operators, and vessel and auto dealers
- Regulating Body: The Washington Department of Licensing
- Required Amount: $1,000–$40,000 based on the license type, $30,000 for standard dealers
- Premium Rates: Credit-based, typically 0.65–5% of the bond amount
What is a Washington motor vehicle bond?
Revised Code of Washington Title 46 requires individuals file a surety bond for motor vehicle industry business licensing. The state-required bond form is officially titled the "Vehicle/Vessel Dealer, Vehicle Manufacturer, Registered Tow Truck Operator, or Wrecker Business Bond," but it's more commonly known as a "motor vehicle dealer bond" or just "auto dealer bond." This bond protects consumers from financial loss up to the full bond amount if a motor vehicle business fails to operate according to Washington state law.
How much does a Washington auto dealer bond cost?
Washington motor vehicle bond costs vary depending on the license type needed, but all bonds are issued for 1 year as required by the state. Wrecker bonds, vessel dealer bonds, registered tow truck operator bonds, and miscellaneous vehicle dealer bonds cost $100 per year for all individuals.
Your exact bond premium for the state's other license types will be provided after a quick application underwriting review. Apply now to get your free quote!
- Vehicle dealer bonds start at $196 per year for both new and used dealers.
- Mobile home manufacturer bonds start at $262 per year.
- Travel trailer manufacturer bonds start at $131 per year.
How can you acquire a Washington motor vehicle bond?
You can buy a wrecker, vessel dealer, registered tow truck operator, or miscellaneous vehicle dealer bond online 24/7. You can apply for your vehicle dealer, travel trailer home manufacturer, or mobile home manufacturer bond online 24/7 through our safe and secure application portal.
You must provide the following information for Washington Department of Licensing approval.
- name
- address
- license type
- dealer license number, if available
Once you've paid your invoice, your official surety bond will be emailed to you.
How fast can I get a motor vehicle business bond?
Our industry-leading technology and responsive customer service team allow us to offer free quotes and deliver official Washington motor vehicle bonds faster than any other surety provider. Orders placed by 4 PM CST Monday-Friday are typically processed with same-day emailed bond delivery.
Why is this Washington auto dealer bond required?
By filing a Washington motor vehicle business surety bond, you agree to follow Washington laws while working as a dealer, manufacturer, tow truck operator, or wrecker. If you fail to do so, the surety company will pay valid claims up to the full bond amount. You would then reimburse the surety company for damages paid.
If you're trying to register a vehicle without an original title, a separate Washington vehicle ownership bond is required.
If you are selling airplanes, the state requires a $50,000 aircraft dealer's license bond.
Who regulates motor vehicle business licensing?
The Washington State Department of Licensing enforces license and bond requirements for motor vehicle businesses in the state. If you're unsure which license you need, call 1(360)664-6455 before purchasing your bond.
What are the various types of motor vehicle bonds in Washington?
Washington surety bond requirements vary depending on the license type needed.
Motor Vehicle Dealer Bond
Businesses or auctioneers that sell new or used cars, trucks, or motor homes at wholesale or retail must file a $30,000 motor vehicle dealer bond.
Motor Vehicle Wrecker Bond
Businesses that buy or sell wrecked motor vehicles for the purpose of dismantling them or second-hand motor vehicle parts must file a $1,000 surety bond.
Vessel Dealer Bond
Vessel dealers who sell more than 15 vessels per year with a retail value greater than $2,000 must file a $5,000 surety bond. A vessel dealer license is not required for businesses that sell watercraft that are less than 16 feet long, not able to be powered by a motor or the wind, and not designed for use on commonly-used navigable waters.
Registered Tow Truck Operator Bond
Businesses that transport, import, impound, or store unauthorized vehicles, or dispose of abandoned vehicles must file a $5,000 bond.
Travel Trailer Manufacturer Bond
Businesses that manufacture travel trailers, including 5th-wheel trailers, must file a $20,000 surety bond.
Mobile Home Manufacturer Bond
Businesses that manufacture mobile homes must file a $40,000 surety bond.
How do I change or update my motor vehicle bond form?
If the Washington Department of Licensing requires you to update information on your bond form, contact your surety provider. If you purchased your Washington surety bond from SuretyBonds.com, email [email protected] to explain the needed change.
The most common changes for these bonds are the business name or address.
How do you renew your Washington auto dealer bond?
You should renew your Washington motor vehicle bond before its current term expires. Once you pay your SuretyBonds.com renewal invoice, renewal instructions will be emailed to you.
How do I get a motor vehicle business license?
You can apply for your license online (10 days to process) or by mailing your application to the following address (up to 6 weeks to process).
State of Washington
Business Licensing Service
PO Box 9034
Olympia, WA 98507-9034
The following documents must be submitted with your application along with your surety bond in the correct required amount..
Motor Vehicle Dealer License
- Vehicle Dealer/Manufacturer Addendum
- Financial/Source of Funds Statement
- Personal/Criminal History Statement
- Copy of Property Tax Statement or Rental/Lease Agreement for Dealership Location
- Certificate of Dealer Education (used vehicle dealers only)
Motor Vehicle Wrecker License
- Vehicle Transport/Disposal Addendum
- State Environmental Policy Act (SEPA) Checklist
- Personal/Criminal History Statement
- Weighing and Measuring Devices Addendum
Vessel Dealer License
Registered Tow Truck Operator License
- Vehicle Transport/Disposal Addendum
- official fees
- inspection report
- driver list
- proof of insurance
Travel Trailer and Mobile Home Manufacturer License
- Vehicle Dealer/Manufacturer Addendum
- Financial/Source of Funds Statement
- Personal/Criminal History Statement
- Copy of Property Tax Statement or Rental/Lease Agreement for Manufacturing Location
Additional Resources
Washington State Department of Licensing: Vehicle Dealer
Washington State Department of Licensing: Vessel Dealer
Washington State Department of Licensing: Vehicle Manufacturers
Washington State Department of Licensing: Registered Tow Truck Operator (RTTO)
Washington State Department of Licensing: Motor Vehicle Wrecker
