California Auto Dealer Bonds
California requires a $10,000 wholesale bond for dealers selling fewer than 25 vehicles per year and a $50,000 motor vehicle dealer bond for retail, used, new, and high-volume dealers.
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At a glance
California Auto Dealer Bond Key Facts
Governed by Cal. Veh. Code §§ 4157–4158.
The basics
What Is an Auto Dealer Bond in California?
A bonded title in California is a regular vehicle title the DMV issues on the strength of a Motor Vehicle Ownership Surety Bond (DMV form REG 5057). You use it when you cannot get the normal ownership papers — for example, the title is lost — and the vehicle is worth $5,000 or more. California calls this the “Motor Vehicle Ownership Surety Bond.”
Good to know - $5,000 or more. Under $5,000, a surety bond is generally not required.
The bond protects the California DMV and any future owner or lienholder if someone else turns out to have a claim on the vehicle. It does not replace the DMV application — you file the bond together with your title paperwork.
If your vehicle is worth less than $5,000, you usually do not need a surety bond. You may be able to establish ownership with a Statement of Facts (REG 256) and other supporting documents instead, so check before you buy a bond.
Qualification
What You Need to Qualify for a California Auto Dealer Bond
Approval depends on your dealer license type, required coverage amount, and underwriting factors such as credit.
- You cannot get the regularly required proof of ownership (for example, the title is lost, or you cannot get a lien release from the prior owner).
- The vehicle is worth $5,000 or more (a surety bond is generally not required below this amount).
- The vehicle can be verified — a DMV employee or peace officer completes a Verification of Vehicle (REG 31).
- The bond is issued by a surety insurer authorized to do business in California.
Step by step
How to Get an Auto Dealer Bond in California: Step by Step
Confirm you need a bond
California requires a Motor Vehicle Ownership Surety Bond only when you cannot get normal proof of ownership and the vehicle is worth $5,000 or more. If it is worth less, ask the DMV about establishing ownership another way first.
Determine your bond amount
The bond must equal the vehicle's fair market value (1x). Set the value with a written appraisal or a Statement of Facts using a recognized value guide such as Kelley Blue Book, averaging the lowest and highest values. Enter your value in the calculator above to estimate your premium.
Statement of Facts (REG 256)Buy and sign your REG 5057 bond
Purchase the Motor Vehicle Ownership Surety Bond and complete DMV form REG 5057. Once issued, the bond stays in effect for three years.
Motor Vehicle Ownership Surety Bond (REG 5057)Complete your DMV application
Fill out the Application for Title or Registration (REG 343). If the California title is lost, stolen, or damaged, also complete the Application for Replacement or Transfer of Title (REG 227) and a Statement of Facts describing how you got the vehicle.
Application for Title or Registration (REG 343)File everything at the DMV
Submit the signed REG 5057 bond with your application and pay the title and registration fees at a local DMV field office. Fees vary by vehicle value, county, and type.
Paperwork
California Dealer Bond Forms & Documents
Used when the California title is lost, stolen, or damaged.
View formCompleted by a DMV employee or peace officer.
You'll also need
Cost
How California Auto Dealer Bond Pricing Works
You do not pay the full bond amount. In California, the bond amount is usually equal to the vehicle’s fair market value. You pay a premium, which is a smaller percentage of that amount.
Your final price depends on the vehicle value and underwriting. Use the calculator above for an estimate, but the final premium may vary.
Worked example
If your vehicle’s fair market value is $8,000, the bond amount is $8,000. You pay only the premium, not the full $8,000.
Filing
Filing Information
California Department of Motor Vehicles (DMV)
We prepare the issued bond and send you a copy for your records. Filing requirements vary by state, license type, carrier, and bond form.
1-800-777-0133FAQ
California Auto Dealer Bond FAQ
Yes, conditionally. California issues a title backed by a Motor Vehicle Ownership Surety Bond (REG 5057) when you cannot get the normal ownership documents and the vehicle is worth $5,000 or more. Below $5,000, a surety bond is generally not required.
The bond amount equals your vehicle’s fair market value (1x). You pay a premium — a percentage of that amount — not the full bond amount. Use the calculator above to estimate it.
By a written appraisal, or by a Statement of Facts (REG 256) using a recognized value guide such as Kelley Blue Book, averaging the lowest and highest values.
Three years. Under California Vehicle Code section 4158, the bond is returned at the end of three years, or sooner if the vehicle is no longer registered in California and the title is surrendered.
You usually do not need a surety bond. Ask the DMV about establishing ownership with a Statement of Facts (REG 256) and other supporting documents instead.
At a local DMV field office. Submit the signed REG 5057 bond with your Application for Title or Registration (REG 343) and pay the fees. Call 1-800-777-0133 with questions.
Sources
Last verified 2026-06-22. Requirements change - confirm current details with California Department of Motor Vehicles (DMV) before you file. This page is informational and not legal advice.
FAQ
California Auto Dealer Bond Questions
The cost of a California auto dealer bond is usually a small percentage of the state-required bond amount. Your exact premium depends on the bond amount, license type, business details, and underwriting factors such as credit.
Many auto dealer bonds can be issued the same day after you complete the application. Larger bond amounts or applications that need underwriting review may take longer.
California has different bond requirements depending on the license type. California commonly requires a $10,000 wholesale dealer bond for wholesale-only dealers selling fewer than 25 vehicles per year, and a $50,000 motor vehicle dealer bond for many retail and motor vehicle dealer licenses.
Yes. In California, wholesale-only dealers may need the $10,000 wholesale dealer bond, while many retail and motor vehicle dealers need the $50,000 motor vehicle dealer bond. Choose the bond that matches your license instructions.
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AutoDealersBond.com is operated by Insurance Services by Shield, a California and Texas licensed insurance agency (CA License #6018195, TX License #3446536). Insurance Services by Shield is not an insurance carrier and does not underwrite bonds or insurance policies. Bond and coverage availability, pricing, and issuance are subject to carrier underwriting approval, eligibility, applicable state requirements, and policy or bond terms. Availability varies by state.
