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Alabama New Vehicle Dealer Bonds, AL Used Motor Vehicle Dealer Bonds, AL Rebuilder Bonds, AL Reconditioner Bonds, or AL Wholesaler Bonds

In Alabama, all New or Used Motor Vehicle Dealers (MVD), Rebuilders, Reconditioners or Wholesalers need a surety bond, according to the AL rule 810-8-5-.07. Franchised new car dealers need a $25,000 AL motor vehicle dealer bond while those dealing in used cars only need a $10,000 AL used dealer bond. This bond requirement is regulated by the AL Department of Revenue.

If your Alabama dealer surety bond is cancelled for any reason, the license will be revoked. If the licensee decides to change their bonding company, a new AL dealer bond must be delivered to the Severance & License Section before the old bond is cancelled. Otherwise, the license will be revoked when the coverage ceases under the old AL dealer surety bond. A new bond must also be provided when changing from one legal entity to another.


• The bond must be accompanied by an original Power of Attorney form, indicating that the agent is authorized to execute the bond on behalf of the surety company.

• The AL dealer bond form and power of attorney must have the same issue date.

• The bond form must be an original with original signatures. No facsimiles, photocopies, letters or phone calls are acceptable substitutes for the original bond.

• The coverage of the AL dealer bond may not be for a period of more than one year. It must not begin prior to October 1 and must expire on September 30 of the same license year.

• In accordance with section 40-12-398, Code of Ala. 1975, the bond must be continued by furnishing a Continuation Certificate executed by the surety company. This rule establishes the form of a proper Continuation Certificate to be filed in lieu of a new bond with the application for license.
Ameribonds Surety can provide the Alabama used motor vehicle dealer bonds, AL rebuilder bonds, AL reconditioner bonds and wholesaler surety bonds at very affordable prices, with rates as low as $100.00 for the Used Motor Vehicle Dealer, Rebuilder, Reconditioner and Wholesaler, subject to a simple credit check.  The New Motor Vehicle Dealer bond is as low as $225.00. Feel free to call us at (618) 242-7800 or (800) 995-0997, or find more information at the following State websites: