North Carolina — Motor Vehicle Dealer Bond
North Carolina motor vehicle dealers need $50,000 security for the first established salesroom and $25,000 for each additional one. Identify the salesroom covered by your request, then begin with RLI.
Also known as North Carolina Motor Vehicle Dealer Bonds
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- Recorded state
- North Carolina
- Category
- Vehicles, titles & transportation
What this bond does
Surety bond to ensure the dealer conforms to state law and compensates purchasers for damages, particularly regarding title delivery.
- Who needs it
- Motor Vehicle Dealer
- Who it protects
- The protected interest includes purchasers who suffer loss or damage due to the dealer's failure to deliver free and clear title or other statutory violations.
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, RLI (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
- G.S. 20-288 (opens in a new tab)Checked October 19, 2026
Have these ready
- List each established salesroom and identify whether this application concerns the first or an additional location.
- Have the legal applicant name, requesting party and any required form available for the provider application.
- Compare the requested sum and effective dates with the actual option and issued document.
Questions about this bond
What is the primary condition of the corporate surety bond?
It is conditioned that the obligor will faithfully conform to and abide by the provisions of Article 12 and Article 15 of Chapter 20.
Can a surety cancel a bond due to nonpayment?
Yes, a bond can be canceled for nonpayment of premium provided 30 days' written notice is given to the license holder and the Commissioner.
What should I prepare for this application?
List each established salesroom and identify whether this application concerns the first or an additional location.