Surety Bond Encyclopedia

Wholesale Motor Vehicle Dealer ($25,000) Bond - Statewide in Oklahoma

Brief Summary

Selling only to other dealers does not get you out of bonding in Oklahoma. A wholesale used motor vehicle dealer posts the same $25,000 bond as a retail used car lot, filed with the Oklahoma Used Motor Vehicle, Dismantler, and Manufactured Housing Commission on the Commission's own bond form. You pay a premium instead of tying up $25,000, and the executed form goes straight into your license file.

Under 47 O.S. 583, every applicant for an Oklahoma wholesale used motor vehicle dealer license must file a $25,000 surety bond with the Oklahoma Used Motor Vehicle, Dismantler, and Manufactured Housing Commission. The bond runs to the State of Oklahoma and to anyone harmed by fraud, fraudulent representations or title problems. Bonds on the Commission's form expire December 31 of each odd numbered year, and a separate $25,000 liability insurance policy is also required.

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How to Apply for a Wholesale Motor Vehicle Dealer ($25,000) Bond:

Confirm you sell only to licensed used motor vehicle dealers. Retail sales need a different license.
Have the legal business name and address exactly as they will appear on the Commission application.
Complete the bond application and review the quoted premium.
Pay the premium and receive the executed $25,000 Wholesale Motor Vehicle Dealer's Surety Bond on the Commission's form.
Submit the bond, Certificate of Insurance and financial statement through the Commission's dealer portal with the $600 license fee.
Renew the bond before December 31 of the odd numbered year so the license is not revoked.

Detailed Information About the Oklahoma Wholesale Motor Vehicle Dealer ($25,000) Bond:

Wholesale is not a lighter license

Oklahoma defines a wholesale used motor vehicle dealer in 47 O.S. 581 as someone who sells, brokers or exchanges used motor vehicles exclusively to used motor vehicle dealers. Many applicants assume a dealer to dealer operation carries a smaller bond. It does not. Section 583 sets the wholesale bond at $25,000, the same figure as a standard used motor vehicle dealer license.

Who the bond protects

The Commission's Wholesale Motor Vehicle Dealer's Surety Bond runs to the State of Oklahoma and severally to any person who has a right of action against the dealer. The statute requires the bond to be approved as to form by the Attorney General and conditioned that the dealer will not practice fraud, make fraudulent representations or violate the dealer laws at 47 O.S. 581 et seq. It also covers loss or damage suffered by any person because of the issuance of a certificate of title.

Timing and cancellation

Since January 1, 2016, Oklahoma has issued these licenses for two year periods, and the bond form states that all bonds expire December 31 of each odd numbered year. The bond has to stay in force for the whole licensure period. If it is canceled, the license is revoked as of the cancellation date unless a new bond is furnished before that date.

The insurance is a separate requirement

Section 583 also requires every wholesale used motor vehicle dealer to carry at least $25,000 of single liability insurance on vehicles offered for sale or driven on public roads. The bond does not satisfy that requirement, and the insurance does not replace the bond. The Commission lists a Certificate of Insurance and a financial statement among the wholesale dealer forms.

Eligibility and Requirements for a Oklahoma Wholesale Motor Vehicle Dealer ($25,000) Bond:

Bond amount of $25,000 under 47 O.S. 583.
Obligee: State of Oklahoma and severally any person with a right of action, filed with the Oklahoma Used Motor Vehicle, Dismantler, and Manufactured Housing Commission.
The Commission's Wholesale Motor Vehicle Dealer's Surety Bond form, approved as to form by the Attorney General.
At least $25,000 of single liability insurance on vehicles offered for sale, carried in addition to the bond.
License fee of $600 for the initial license and $300 for each later renewal.
Owner credit review by the surety, which affects the premium.

Oklahoma Wholesale Motor Vehicle Dealer ($25,000) Bond FAQs:

I only sell to other dealers. Is my bond smaller?

No. 47 O.S. 583 sets the wholesale used motor vehicle dealer bond at $25,000, the same amount required for a standard used motor vehicle dealer license.

When does the bond expire?

The Commission's bond form states that all bonds issued under the act expire December 31 of each odd numbered year. Licenses have been issued for two year periods since January 1, 2016.

Does my liability insurance count toward the bond?

No. Section 583 requires a minimum of $25,000 of single liability insurance on vehicles offered for sale as a separate obligation. You need both.

What happens if my bond is canceled?

The license is revoked as of the cancellation date unless a new bond is furnished before that date. Keep the bond in force for the whole licensure period.

Who can make a claim on the bond?

The bond runs to the State of Oklahoma and severally to any person with a right of action. It covers loss from fraud, fraudulent representations, violations of the dealer laws and the issuance of a certificate of title.