Alabama Motor Vehicle Dealer - New for Huntsville



The Alabama Motor Vehicle Dealer - New is a $25,000.00 bond. This bond is available in 1, 2, or 3 year terms.

The Franchise (New Motor Vehicle Dealer) Bond is very similar to the Used MVD bond that we offer. The difference is that franchise auto dealers sell new vehicles (they can sell used vehicles also). A surety bond protects the consumer against damages due to fraud, defaulting on a contract, or other negative and wrongful behaviors on the part of a business providing the service or product. In the case of new or used motor vehicles, the bond guarantees that the dealer will comply with the federal, state, and sometimes local laws related to motor vehicles.

Ashton Agency has a 99% approval rate and offers the Motor Vehicle Dealer Bond for Alabama car dealers for one, two, or three years.

Who needs the Motor Vehicle Dealer Bond?

In the State of Alabama, Auto Dealers are required to obtain a $25,000 Motor Vehicle Dealer Bond to be in compliance with Title 40, Chapter 12, Article 8 of the Code of Alabama, 1975 of the Alabama Statutes. All Alabama motor vehicle dealer bonds have a common expiration date of September 30th.

What is the Motor Vehicle Bond?

The Motor Vehicle Dealer Bond protects the party requesting the surety bond, the Obligee, against any financial losses as a result of poor financial choices, damages, unethical decisions, or a failure to adhere to state and local laws on the part of you, the Principal. By obtaining your auto dealer bond, you are telling the Obligee that you can be trusted and that you stand by your business decisions.

What else do I need besides the Motor Vehicle Dealer Bond?

In addition to the bond, the State of Alabama requires that you purchase blanket liability insurance coverage for all vehicles owned and/or associated with the business. The insurance limits are:

  • $25,000 bodily injury/person/accident

  • $50,000 combined bodily injury/accident

  • $25,000 property damage/accident or a combined single limit of $75,000/accident

Ashton Agency can write your liability coverage too. Contact us today at (800) 451-4854 for a free, no-obligation quote on both your bond and insurance! We can write your bond for up to three years, with discounts available on the second and third years' premiums. Let us save you money!

Not sure what else you might need to get licensed or renewed? Check out the requirements here!

I have my bond and insurance.. What now?

Dealers will submit the original signed bond form to the Alabama Department of Revenue at the following address:

Alabama Department of Revenue

Sales, Use & Business Tax Division

Severance & License Section

PO Box 327550

Montgomery, AL 36132-7550

Telephone: (334) 353-7827

Motor Vehicle Dealer Bonds are also known as: Alabama Auto Dealer Bond, Auto Dealer Bond, Franchise Dealer Bond, MVD Bond, DMV Bond, Dealer Bond, New Car Dealer Bond, New Auto Dealer Bond, and Car Dealer Bond.

Get Bonded Within One Business Day!

Only Ashton Agency can provide you with:

  • The lowest price for your dealer bond.

  • Quickest Turnaround time.

  • The ability to meet or beat any comet competitors' pricing.

Everyone needs a dealer bond, but by contacting the Ashton Agency, you can be sure you'll be getting the best price available, not to mention our stellar customer service and insider knowledge of the dealer industry. We've been helping auto dealers get bonded for more than 45 years. Let us put that experience to work for you today!

Call us now at (800) 451-4854 for a free quote and we will contact you within 24 hours. We can assist you over the phone to ensure you receive your bond quickly and easily!

Don't have time to speak on the phone? Please fill out our easy online application and fax to (407) 678-2468. We can get you started right away!


Huntsville, A Better Price Starts Right Here!

Let's start with some basic information about your company to get going on your new Bond or Insurance. Please note that anything marked *required must be completed before you can submit the form.

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Motor Vehicle Dealer - New Alabama
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East Coast:
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West Coast:
(800) 452-2663

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