Brief Summary
Oregon issues vehicle dealer certificates for three years, and ORS 822.030 ties the bond to that term at $50,000 for each year the certificate is valid. Make sure the bond you buy is written to match the certificate period, and DMV can issue the certificate without sending it back for a rider.
Under ORS 822.030 an Oregon vehicle dealer must file a bond or irrevocable letter of credit executed to the State of Oregon in the amount of $50,000 for each year the dealer certificate is valid. Dealers selling only motorcycles, mopeds, Class I all-terrain vehicles or snowmobiles post $10,000 instead. A dealer selling new cars and trucks falls under the general $50,000 rule. Certificates run three years, and the bond is filed with DMV on application form 735-370.
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Detailed Information About the Oregon NEW Motor Vehicle Dealer ($50,000) Bond:
The amount is tied to the certificate term
ORS 822.030(1)(c) sets the bond or letter of credit for a vehicle dealer at $50,000 for each year the certificate is valid. DMV issues dealer certificates for three years, so the bond has to be written to support the full certificate period. The only lower figure is $10,000, for a dealer certificated to deal exclusively in motorcycles, mopeds, Class I all-terrain vehicles or snowmobiles. Franchise dealers selling new vehicles post the general dealer amount.
What it covers
The bond is conditioned that the dealer will do business without fraud or fraudulent representation and without violating the vehicle code provisions on registration, permits, the transfer or alteration of vehicles, and the regulation of dealers. Any person who suffers loss from those violations has a right of action against the dealer and the surety. Claims by anyone other than a retail customer are capped at $10,000 under the $50,000 bond.
Bond or letter of credit
The statute allows an irrevocable letter of credit from an insured institution instead of a surety bond. Either one runs to the State of Oregon and must be approved as to form by the Attorney General.
Who needs a certificate
ORS 822.015 lists persons who do not need a dealer certificate, including receivers, trustees, personal representatives and public officers acting in their official duties, insurance adjusters disposing of salvage, and collectors buying vehicles to preserve or restore for hobby or historical purposes.
Education and fees
Original applicants complete eight hours of pre-licensing education from an approved provider. Renewing dealers complete 12 hours of continuing education over the three year certificate. The original certificate fee on form 735-370 is $1,188, which includes one plate, and each additional location is $350. DMV says complete applications take two to three weeks to process.
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