License & Permit Bonds

Selling Used Cars? Get a DMV Bond!


If you have an entrepreneurial spirit (or if you are just hoping to buy a reasonably priced car), you’ll want to take note of this trend: used cars are in huge demand, with prices skyrocketing and inventory tight.

 Business As Usual Disrupted

According to the New York Times (NYT), used car sales have been in such demand that traditional dealers have had to scurry to find inventory:

The boom has turned the business of selling cars upside down. Because used cars dont come from factories in Detroit, dealers are having to work as hard to buy cars as they typically do to sell them, they say, including running ads and cold calling people to ask if they would be interested in selling their old car. Thats how strong demand for used cars has become in the pandemic. (


Rising Demand for Used Car Sales

The NYT report attributes this trend to several dynamics related to the COVID-19 crisis:

  • Health concerns have led some people to avoid trains, buses, and Uber.
  • Faced with financial worries, heads of households are avoiding the expense and debt associated with new car purchases.
  • There was a two month halt on the production of new cars this past spring—at the height of the virus—resulting in the availability of fewer new cars for those who would buy them.


Selling Cars Requires A Surety Bond

If you are considering selling used cars, an important first step is to follow your state’s regulations to obtain a license and permit to legally operate your car business.

Colonial Surety Company can help you too. We provide a direct, digital, speedy and efficient way for you to obtain the motor vehicle dealer bond required to sell vehicles.

Colonial Surety Company IS the insurance company — which means no agent, no broker, and no middleman. The steps are easy — get a quote online, fill out your information, and enter your payment method. Your bond will be available instantly. It’s that simple! Start here:

Good To Know

motor vehicle dealer bond, also referred to as a DMV bond, or auto dealer bond, is a type of surety bond. It protects customers from fraud or dishonesty and ensures that the seller complies with government regulations. The specifics of the bond depend on state laws, but two examples of common terms the “principal” (seller) agree to when securing a bond include:

  • Transfer of a good title for each motor vehicle sold.
  • Keep customer deposits safe until the title has been transferred.