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Have a question? +1 815-826-6324 (815-8-BondAI) phil@AmericasSuretyBonds.com
Army Veteran Owned | Expert Surety Bonds Since 2004
Before quoting anyone a $100,000 remanufactured vehicle dealer bond in Ohio, check what the state actually asks for. Ohio does not license a remanufactured vehicle dealer, and no Ohio statute or rule sets a $100,000 dealer bond. The bond that exists is $75,000, it attaches to used motor vehicle dealer applications, and it is filed with the Attorney General rather than the BMV. Some applicants who have held another dealer license recently do not post it at all.
There is no Remanufactured Vehicle Dealer license in Ohio and no $100,000 bond attached to one. Ohio Revised Code 4517.01 defines a remanufacturer as a person who assembles or installs passenger seating, walls, a roof elevation or a body extension on a conversion van, or who modifies a truck, limousine, hearse or tow truck chassis. Section 4517.02 addresses remanufacturers by requiring written authority from the manufacturer or distributor to sell remanufactured new vehicles, plus a binding service agreement for the customer, not by requiring a bond. The one dealer surety bond in Ohio's rules is at OAC 4501:1-3-11(C): a used motor vehicle dealer application received on or after January 27, 2018 must post with the Attorney General's office, in favor of this state, a bond of a surety company authorized to do business in Ohio in an amount of not less than $75,000.
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Ohio Revised Code 4517.02 lists the license types the Registrar issues: new motor vehicle dealer, used motor vehicle dealer, motor vehicle leasing dealer, motor vehicle auction owner, distributor, and adaptive mobility dealer. Remanufactured vehicle dealer is not among them.
Remanufacturers appear in the chapter, but differently. Section 4517.01 defines a remanufacturer as a person who assembles or installs passenger seating, walls, a roof elevation or a body extension on a conversion van, or who modifies a truck, limousine, hearse or tow truck chassis, with recreational vehicle work and adaptive mobility dealers carved out. Section 4517.02 then conditions the sale of a remanufactured new vehicle on written authority from the manufacturer or distributor, and on giving the customer a binding agreement that the vehicle can be serviced or repaired by an authorized dealer within twenty miles, or at the nearest such location if none is within that radius.
No bond appears in any of that. Searching the chapter and the Registrar's rules for a $100,000 dealer bond returns nothing.
Ohio Administrative Code 4501:1-3-11 is the net worth and bond rule, adopted under ORC 4501.02, 4517.12 and 4517.32. It has two separate financial tests, and people routinely confuse them.
Paragraph (A) is net worth. No person as defined in ORC 4517.01(A) may be issued a motor vehicle dealer's license, or operate under one, without a net worth verifiable upon application of at least $75,000. Paragraph (B) defines net worth as assets less liabilities, with assets covering money, receivables, prepaid items and other property, real or personal, tangible or intangible, and liabilities covering all short term and long term obligations. That test reaches motor vehicle dealer licenses generally.
Paragraph (C) is the bond, and it is narrower. Each application for a used motor vehicle dealer license under Chapter 4517 received on or after January 27, 2018 must post with the Attorney General's office, in favor of this state, a bond of a surety company authorized to do business in this state, in an amount of not less than $75,000.
So the bond is a used dealer requirement, the amount is $75,000, and it is a floor rather than a fixed ceiling.
The rule exempts a used motor vehicle dealer, or any sole proprietor, corporate officer, business trust trustee, or partner or member of a partnership or limited liability company, that currently holds or has held a new motor vehicle dealer license, an adaptive mobility dealer license, or a leasing dealer license within the one year period immediately preceding the date of application, provided the previous license was not suspended, revoked, or found in violation of ORC 4505.181.
That is a real exemption with a real deadline attached to it. One year from the prior license. Franchise operations adding a used lot frequently qualify and never need to buy the bond at all.
The bond runs in favor of the state and is filed with the Attorney General, not with the BMV. The Ohio Dealer Licensing surety bond page directs the original bond to the Ohio Attorney General, Consumer Protection Section, Attn: TDRF Unit Surety Bond, 30 E. Broad Street, 14th Floor, Columbus, OH 43215, and the original has to be received before the license issues.
Two details cause most of the rework. The bond has to be in the registered business name matching the Bureau of Motor Vehicles and Secretary of State records, and it has to stay in force for the entire license period. The Registrar must be notified no less than 30 days before cancellation, and failure to maintain a valid bond is referred to the Motor Vehicle Dealers Board for possible suspension or revocation. A licensee also notifies the Registrar within fifteen days of changes to the information in the application.
ORC 4517.05 imposes application procedures and mandatory training on used motor vehicle dealer applicants. Completing that training satisfies its own condition and nothing else. Neither training nor meeting the $75,000 net worth test removes the bond, and the bond does not remove either of them.
ORC 4517.10 sets license fees at $50 for a motor vehicle dealer or leasing dealer license, $100 per place of business for a motor vehicle auction owner license, and $100 per distributorship for a distributor license, with $2 for certified or duplicate copies. The section also provides that the Registrar shall not require a license to practice as a motor vehicle salesperson.
No. Ohio does not license a remanufactured vehicle dealer, and no Ohio statute or Registrar rule sets a $100,000 dealer bond. The dealer bond in OAC 4501:1-3-11(C) is not less than $75,000 and applies to used motor vehicle dealer applications received on or after January 27, 2018.
Through authorization and service obligations rather than a bond. ORC 4517.01 defines a remanufacturer as a person who assembles or installs passenger seating, walls, a roof elevation or a body extension on a conversion van, or modifies a truck, limousine, hearse or tow truck chassis. ORC 4517.02 requires written authority from the manufacturer or distributor to sell remanufactured new vehicles, plus a binding agreement giving the customer service or repair rights at an authorized dealer within twenty miles, or the nearest one if none is within that distance.
Used motor vehicle dealer applicants whose applications were received on or after January 27, 2018. The rule does not extend the bond to new dealer, leasing dealer, auction owner, distributor or remanufacturer licenses.
OAC 4501:1-3-11 exempts a used motor vehicle dealer, or any sole proprietor, corporate officer, business trust trustee, or partner or member of a partnership or limited liability company, that currently holds or has held a new motor vehicle dealer license, an adaptive mobility dealer license, or a leasing dealer license within the one year period immediately preceding the application date, so long as that license was not suspended, revoked, or found in violation of ORC 4505.181.
No. Paragraph (A) of the rule requires a verifiable net worth of at least $75,000 to be issued a motor vehicle dealer's license or to operate under one. Paragraph (C) requires the $75,000 surety bond for used dealer applications. They are separate tests that happen to share a number, and meeting one does not satisfy the other.
With the Attorney General's office, in favor of the state, not with the BMV. The Ohio Dealer Licensing surety bond page directs the original bond to the Ohio Attorney General, Consumer Protection Section, Attn: TDRF Unit Surety Bond, 30 E. Broad Street, 14th Floor, Columbus, OH 43215, and it must be received before the license is issued.
The bond must remain valid for the duration of the license, and the Registrar must be notified no less than 30 days before cancellation. Failure to maintain a valid bond is referred to the Motor Vehicle Dealers Board for possible suspension or revocation of the license.
No. ORC 4517.05 sets application procedures and mandatory training for used motor vehicle dealer applicants. It is a separate condition. Training does not reduce or waive the bond, and the bond does not excuse the training.
Premium is a percentage of the $75,000 penalty, set by the surety after reviewing the owner's personal credit and, for larger operations, financial statements and time in business. Because Ohio also tests net worth, applicants who document a solid balance sheet often present well to the surety at the same time. Weak credit, a startup lot or a prior bond claim price higher and can require collateral or an indemnitor. There is no real quote before credit is pulled.
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