WHAT ARE THE BOND REQUIREMENTS FOR GETTING A MOTOR VEHICLE DEALERS LICENSE IN ALABAMA?
A. All new applicants need a bond (available from your insurance agent). Franchised new car dealers need a $25,000 bond while those dealing in used cars only need a $10,000 bond. Unless the dealership is a corporation, the bond should list the names of all owners and the DBA name of the dealership. (Bill Jones and Joe Smith DBA XYZ Auto Sales.) If the dealership is a corporation, the bond should be in the corporate name. If your bond is canceled for any reason, your license will be revoked. If you decide to change your bonding company, you must deliver the new bond to the Severance & License Section before the old bond is cancelled. Otherwise, your license will be revoked when the coverage ceases under the old bond.
