Motor Vehicle Dealer - $100,000 Bond - Statewide in Alaska

Brief Summary

Alaska has two amounts, not one. AS 08.66.060 sets the bond at $100,000, except that a dealer who sells only motorcycles posts $25,000. The $100,000 figure took effect through HB 36, which raised it from $50,000, and the DMV required every active dealer other than motorcycle only dealers to file the higher bond along with proof of auto dealer liability insurance or lose the license. Two other facts catch applicants. The bond is not the only filing, since liability insurance on an auto dealer's form is separately required, and registration is biennial, due before January 1 every two years, not annually.

Alaska requires a motor vehicle dealer to file a surety bond of $100,000, or $25,000 if the dealer sells only motorcycles, on the Division of Motor Vehicles form Motor Vehicle Dealer's/Buyer's Agent Surety Bond, DLR-003. The bond runs to the Commissioner of Administration in their capacity as agent for the State of Alaska. Buyer's agents file the same bond form.

We can help with all Alaska bonds!

How to Apply for a Motor Vehicle Dealer - $100,000 Bond:

• File a $100,000 bond, or $25,000 if you sell only motorcycles, on DMV form DLR-003, Motor Vehicle Dealer's/Buyer's Agent Surety Bond
• Name the Commissioner of Administration, State of Alaska, as obligee in their capacity as agent for the state
• Provide proof of liability insurance for bodily injury and property damage on an auto dealer's form
• Submit the Dealer License Application, form DLR-001, and the Dealer Temporary Permit Acknowledgement, form DLR-002
• Document a permanent office with permanently affixed signs, using a lease or rental agreement, a deed or mortgage, or a notarized permission letter
• Comply with local zoning and business requirements at the location
• Pay the $50 registration fee under AS 08.66.020
• Renew the registration before January 1 every two years under AS 08.66.050
• Apply for dealer plates separately if you need them

Detailed Information About the Alaska Motor Vehicle Dealer - $100,000 Bond:

The two amounts

AS 08.66.060, as amended by HB 36, reads that the amount of the bond shall be $100,000, replacing the former $50,000, except that the amount of a bond for a dealer who sells only motorcycles shall be $25,000. Those are the only two figures. Nothing scales by units sold, revenue or number of locations, and there is no reduced amount for a dealership that has been in business for years.

When the increase took effect the Division of Motor Vehicles notified all active motor vehicle dealers other than motorcycle only dealers to submit the higher bond and proof of auto dealer liability insurance by a stated deadline or have the license canceled. There was no grandfather clause for dealers already licensed at the old amount.

Who has to register at all

Alaska counts vehicles. A person other than a manufacturer who sells, leases, solicits or arranges for the sale or lease of five or more motor vehicles in any twelve consecutive months must register as a dealer. The statute exempts court appointed officials, sales of a person's own vehicle, sales incidental to another business, employee fleet purchases, and media companies whose only involvement is advertising. Buyer's agents, meaning people who negotiate a purchase from a dealer on behalf of a buyer, register and bond on the same form.

Claims reach back after cancellation

This is the part dealers overlook when they cancel a bond or close a dealership. Liability is continuous, or until thirty days after the surety cancels, and claims may be made within three years of cancellation. A surety that cancels remains liable for claims arising before cancellation or liability that accrued before it, and written notice of cancellation goes to the Commissioner at the Division of Motor Vehicles. Walking away from the bond does not close the exposure on the day the policy ends.

The second instrument

AS 08.66.085 requires a dealer in motor vehicles to maintain liability insurance for bodily injury and property damage on an auto dealer's form. The DMV asks for proof of it alongside the bond. Insurance does not substitute for the bond and the bond does not substitute for insurance.

Location, fee and renewal

The dealership must operate from a permanent office with permanently affixed signs, in compliance with zoning and business requirements, documented by a lease or rental agreement, a deed or mortgage, or a notarized permission letter. The registration fee is $50 under AS 08.66.020, and AS 08.66.050 requires renewal of the registration before January 1 every two years. The application set is the Dealer License Application DLR-001, the Dealer Temporary Permit Acknowledgement DLR-002, the surety bond DLR-003, and an Application for Dealer Plate where applicable.

The bond gets the registration issued. Getting found is another problem. Any licensed dealer can also claim a free listing at BestAutoDealerIn.com, a directory searchable by zip code and state, with a backlink that helps your own SEO, sends referrals, and gets a blog post written about your dealership.

Eligibility and Requirements for a Alaska Motor Vehicle Dealer - $100,000 Bond:

• Bond amount of $100,000, or $25,000 for a dealer who sells only motorcycles
• Commissioner of Administration as obligee, with the bond filed at the Division of Motor Vehicles
• Business name on the bond matching the dealer registration exactly
• Continuous liability, or until thirty days after the surety cancels
• Written notice of cancellation delivered to the Commissioner at the Division of Motor Vehicles
• Credit review of the owners, which shapes the rate rather than eligibility for most applicants

Alaska Motor Vehicle Dealer - $100,000 Bond FAQs:

Official and Additional Resources for the Alaska Motor Vehicle Dealer - $100,000 Bond: