A surety bond is a guarantee that you will follow Georgia dealer laws. Georgia requires a $50,000 surety bond for a used motor vehicle dealer license. You do not pay $50,000. You pay a small premium, which reported providers say can start around $250 for the two-year term, depending on your credit. The bond protects your customers, not you.
What a surety bond is
A surety bond is a three-party promise. You (the principal) promise to follow the law. A surety company guarantees that promise to the state, which is the obligee. If you break the rules and a customer is harmed, the bond can pay that claim, and you then repay the surety company.
The bond amount
Georgia's used motor vehicle dealer bond is $50,000, raised from $35,000 effective July 1, 2026. The bond follows your license cycle, which is two years and ends September 30 of even-numbered years. Beware of older guides and forms that still show $35,000.
What it costs
This is the part that scares people, so read it carefully: the $50,000 is the bond amount, not what you pay. The price of the bond, called the premium, usually starts around $250 and goes up. That price is for the whole two-year bond, not per month. Your credit score is the biggest factor, along with your business history.
Who it protects
The bond protects your customers if a dealer commits fraud, mishandles a title or breaks the law. It is not insurance for you. If a claim is paid, you repay the surety company.
How to get one
- Have your exact business name and commercial address ready.
- Apply with a surety bond agency. Some are completely online.
- Pay the premium.
- Receive the signed bond. The power of attorney must be attached and signed before you submit it to the state.
The bond is separate from your garage liability insurance, which is a one-year policy. See our bond and insurance requirements guide.
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Official sources
- Georgia State Board of Registration of Used Motor Vehicle Dealers (Secretary of State)
- Secretary of State: How-to guide for used motor vehicle dealers
- Georgia Department of Revenue: Dealer registration (dealer license plates)
- GIADA: Pre-license class
Frequently asked questions
What is a surety bond in simple terms?
It is a guarantee that you will follow Georgia dealer laws. If you cause a customer a loss, the bond can pay, and you repay the surety company.
How much is the Georgia dealer surety bond?
$50,000, raised from $35,000 effective July 1, 2026.
Do I have to pay $50,000 for the bond?
No. You pay a premium. Providers report premiums starting around $250 for the two-year term, depending on credit.
Is the bond price monthly?
No. It is a one-time premium covering the two-year bond term.
Does the bond protect me?
No. It protects your customers. If a claim is paid, you reimburse the surety company.
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