Ohio Auto Dealer Bond$25,000 BMV Requirement

Ohio auto dealer bonds ($25,000) cost $250-$2,500 annually depending on credit. With excellent credit (750+), expect $250-$500 (1-2%). Good credit (680-749) costs $500-$1,000 (2-4%). Fair credit (620-679) ranges $1,000-$1,750 (4-7%). Lower credit scores may pay up to $2,500 (10%).

Under Ohio Revised Code Section 4517.16, all motor vehicle dealers must post a $25,000 surety bond with the Ohio Bureau of Motor Vehicles (BMV) as a condition of licensure. The bond must be from a surety company authorized to do business in Ohio and must be continuous until canceled. The BMV requires the bond to be filed on their specific bond form.

Ohio issues six categories of motor vehicle dealer licenses under ORC Chapter 4517: New Motor Vehicle Dealer (franchise), Used Motor Vehicle Dealer (independent), Motor Vehicle Auction Owner, Salvage Motor Vehicle Dealer, Wholesale Motor Vehicle Dealer (dealer-to-dealer only), and Motor Vehicle Distributor. All require the same $25,000 surety bond and $200 application fee.

Ohio BMV dealer licensing typically takes 4-8 weeks from completed application to license issuance. The BMV investigator must conduct an on-site facility inspection after receiving your application. Your surety bond can be issued within 1 business day. Start your bond application early since it is a prerequisite for the facility inspection to be scheduled.

Ohio requires a permanent established place of business with a minimum 200 square foot enclosed office separate from any residential dwelling. You need a permanent sign visible from the public road with the dealership name in minimum 2-inch letters. The lot must accommodate a minimum display of 5 vehicles with adequate lighting. Your location must have proper commercial zoning approval from the local municipality.

Yes. Approval is possible even with credit challenges. While excellent credit (750+) gets the lowest rates at 1-2% of the $25,000 bond amount, we regularly approve applicants with credit scores in the 500-600 range at 5-10%.

Yes. Each physical dealership location must have its own separate dealer license and corresponding $25,000 surety bond filed with the BMV. If you operate a used car lot in Columbus and another in Cleveland, you need two separate licenses and two separate bonds. Each location must independently meet all facility and zoning requirements.

If your surety bond expires or is canceled, the surety company must provide 30 days advance written notice to the BMV. During that 30-day period, you must secure a replacement bond. If you fail to provide a replacement bond, your dealer license is automatically suspended under ORC 4517.16, and you cannot buy, sell, or deal in motor vehicles until the bond is reinstated and the license is restored.

Ohio requires garage liability insurance with minimum limits of $100,000 per person and $300,000 per accident for bodily injury, plus $50,000 for property damage. This is separate from your $25,000 surety bond. The insurance must be from a company authorized to write coverage in Ohio, and proof of insurance must be maintained at your dealership and filed with the BMV.

Ohio dealer licenses renew annually. The BMV sends renewal notices approximately 60 days before expiration. Your surety bond is continuous until canceled, so it renews automatically each year with a new premium. Never let your bond lapse -- it results in immediate license suspension by the BMV.