Georgia Car Dealer License Guide

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Georgia Car Dealer License Guide

Surety Bond Professionals is a family owned and operated bonding agency with over 30 years of experience. With access to a broad range of surety markets, our expert agents are ready to assist with all of your Georgia auto dealer bond needs. Learn how to get a Georgia car dealer license and contact us today to request a quote on the bond you need.

What Are the Different Types of Georgia Auto Dealer Licenses?

Georgia issues the following types of auto dealer licenses:

  • Franchise (new vehicle) dealer license, which also permits the sale of used vehicles
  • Independent (used car) dealer license, which permits both retail and wholesale vehicle sales
  • Auction/Wholesale dealer license, which permits exclusively wholesale or auction sales/purchases of motor vehicles

This article focuses on the licensing of used car dealers by the Georgia Board of Used Motor Vehicle Dealers.

What Are the Steps in the Licensing Process?

Key steps in the licensing process for used car dealers are:

  • Registering the business with the Georgia Department of Revenue and obtaining a sales tax number.
  • Completing an approved pre-licensing seminar. (License renewal requires completion of six hours of continuing education.)
  • Pre-registering for fingerprinting at:
  • Purchasing a two-year auto dealer bond in the amount of $20,000 (must be submitted with completed application package).
  • Purchasing the required amount of liability insurance (submit certificate with application package).
  • Taking photographs of the dealership location and signage (for submission with application package)
  • Downloading and completing the license application license application.
  • Paying the license fee (currently $170)
  • Mailing the completed application and all supporting materials to the Board.

Why is a Georgia Auto Dealer Bond Required?

A Georgia auto dealer bond provides financial protection for both the state and the public. It is a dealer’s guarantee to comply with all applicable state laws and regulations. It legally obligates the dealer to pay all valid claims filed against the bond by the state (typically for unpaid taxes, fines, or fees) or by a consumer who has experienced a financial loss resulting from the dealer’s unlawful or unethical actions.

How Are Georgia Auto Dealer Bond Claims Paid?

There are three parties to a Georgia auto dealer bond, which is a legally binding contract among them:

  • The “obligee,” the party requiring the bond, is the Georgia Board of Used Motor Vehicle Dealers.
  • The “principal,” the party purchasing the bond, is the used car dealer.
  • The “surety” is the company guaranteeing the bond.

Although the principal is legally obligated to pay all valid claims, the surety is guaranteeing payment. Therefore, unless the principal pays a claim right away, the surety will pay it on the principal’s behalf and then collect repayment of that debt from the principal.

How Much Does a Georgia Auto Dealer Bond Cost?

Multiplying the $20,000 required bond amount by the premium rate gives you the annual premium for a Georgia auto dealer bond. The premium rate is set by the surety on a case-by-case basis, based largely on the principal’s personal credit score.  The main underwriting concern is the risk that the principal will not repay the surety for claims paid on the principal’s behalf, so creditworthiness is the key factor in determining what the premium rate will be.

A high credit score suggests that the risk is low, and therefore results in a low premium rate. The reverse is true as well—a low credit score indicates a higher risk level and results in a higher premium rate.

Our surety bond professionals will get you the Georgia auto dealer bond you need at a competitive rate.