Alabama — New Or Used Motor Vehicle Dealer Bond
Alabama new and used motor vehicle dealers use a $50,000 bond for vehicle-sale contracts and licensed-business duties. Have your licensed business details ready, then start the application with Propeller.
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- Recorded state
- Alabama
- Category
- Vehicles, titles & transportation
What this bond does
To ensure compliance with contracts regarding the sale/exchange of motor vehicles and adherence to laws governing the licensee's business conduct.
- Who needs it
- New/Used Motor Vehicle Dealer, Rebuilder, Wholesaler, or Master Dealer
- Who it protects
- The Commissioner of Revenue and any person who recovers a judgment for loss due to a violation of license requirements.
Your bond option
This is the option on record for this bond.
- Bond optionPurchase Now (opens in a new tab)Continue to our secure checkout partner, Propeller (opens in a new tab).
The bond amount describes the limit of the bond obligation, not the price. A listed amount does not establish what the requesting party requires. The premium is what you pay and must be confirmed for the actual option. An E&O limit, where listed, is separate errors and omissions insurance.
Sources
- MVT 4-3 (9-20).qxp (opens in a new tab)Checked October 19, 2026
Have these ready
- Use the exact licensed business name and the Alabama Department of Revenue's required effective date. The form does not accept post-dated bonds.
- Have the dealer class and MVT 4-3 instructions available when you apply.
- After issuance, check the completed bond against the license application before submitting it to the Department.
Questions about this bond
Does this bond cover tax liabilities?
Yes, tax liability incurred by the Principal under Chapter 23 of Title 40 may be assessed against the bond.
What happens to the bond if state laws are amended?
The obligation remains in full force and effect with respect to statutes or any amendments thereto adopted before the bond is cancelled.
When does the bond become effective for current licensees?
The bond pertains only to periods beginning on or after October 1, 2020.