Dealer Bond vs. Cash Deposit
In order to operate as a dealer in California, the California Department of Motor Vehicles (“DMV”) requires dealers to provide a $50,000 dealer bond to protect purchasers, sellers, financing agencies, and governmental agencies against monetary loss resulting from the dealer committing fraud and/or making fraudulent misrepresentations. (Cal. Veh. Code § 11710.) In response to this requirement, there are a number of third-party surety companies that will provide this bond in […]





