Motorcycle Dealer - $25,000 Bond - Statewide in Alaska

Brief Summary

The $25,000 is the exception, and it holds only while motorcycles are all you sell. AS 08.66.060 sets the dealer bond at $100,000, except that the amount for a dealer who sells only motorcycles is $25,000. Add cars, trucks or other motor vehicles to the floor and the bond moves to $100,000. When the amount was raised through HB 36 the Division of Motor Vehicles required every active dealer other than motorcycle only dealers to file the higher bond, which is exactly how the distinction gets tested in practice.

Alaska requires a motorcycle dealer to file a surety bond of $25,000, 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. The $25,000 figure applies only to a dealer who sells only motorcycles. Every other motor vehicle dealer posts $100,000.

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How to Apply for a Motorcycle Dealer - $25,000 Bond:

• Confirm you sell only motorcycles, since anything else on the floor moves the bond from $25,000 to $100,000
• File the bond 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 Motorcycle Dealer - $25,000 Bond:

The only two amounts

AS 08.66.060, as amended by HB 36, provides that the amount of the bond shall be $100,000, up from the earlier $50,000, except that the amount of a bond for a dealer who sells only motorcycles shall be $25,000. Nothing in between and nothing scaling by units sold, revenue or number of locations. The word only carries the whole exception. A shop that also retails ATVs, side by sides, cars or trucks is not a dealer who sells only motorcycles.

Registration turns on five 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, a person selling their own vehicle, sales incidental to another business, employee fleet purchases, and media companies whose only involvement is advertising. Buyer's agents, who negotiate a purchase from a dealer on behalf of a buyer, register and file on the same bond form.

Cancellation does not close the exposure

Liability under the bond 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 had already accrued, and written notice of cancellation goes to the Commissioner at the Division of Motor Vehicles. Closing a shop or dropping the bond does not end claim exposure that day.

The insurance filing

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 asked for proof of it alongside the bond when the higher amounts took effect. Insurance and the bond are separate filings and neither substitutes for the other.

Location, fee and the two year clock

The dealership must operate from a permanent office with permanently affixed signs, complying 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. Alaska is biennial, which trips up dealers expecting an annual notice. 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. Riders still have to find the shop. 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 Motorcycle Dealer - $25,000 Bond:

• Bond amount of $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 at this bond size

Alaska Motorcycle Dealer - $25,000 Bond FAQs:

Official and Additional Resources for the Alaska Motorcycle Dealer - $25,000 Bond: