The Georgia dealer surety bond

This page is about the surety bond for a Georgia used motor vehicle dealer license. It was checked against the statute, the Board rules, and the Board's April 2024 application in November 2026. It is general information, not legal advice. Where those sources disagree, the page says so. Confirm the figure with the Board before you buy a bond. The full license path is in the Georgia dealer license guide.

The bond amount, and why the sources disagree

O.C.G.A. § 43-47-8(d), in the text effective July 1, 2026, requires a bond for each license or supplemental license issued for an established place of business. The bond is executed with a surety company authorized to do business in Georgia. It is payable to the Governor for the use and benefit of any purchaser and that purchaser's vendees or successors in title. It covers losses, damages, and expenses from any misrepresentation, deceptive practice, or unfair practice, or from any breach of warranty, as to the used vehicle. The statute states the amount as $50,000 for used motor vehicle dealers and $10,000 for used parts dealers.

The published history of that section says Ga. L. 2026, p. 748, § 2-2/SB 293, effective July 1, 2026, substituted "$50,000.00 for used motor vehicle" for "$35,000.00 for used car" in paragraph (d)(1).

Rule 681-3-.01(2)(b) still says a complete application includes a bond of $35,000 for used motor vehicle dealers and $10,000 for used motor vehicle parts dealers, citing the older subsection O.C.G.A. § 43-47-8(h). It says that after the initial licensing period the bond runs with the licensing period, and that the licensee should not be without a bond during any licensing period.

The April 2024 application and its bond form also state $35,000. That form says the bond expires on September 30 of an even-numbered year, is in the exact name of the business, is an original with the power of attorney attached, is signed, and is separate for each licensed location. The form's cancellation note still cites O.C.G.A. § 43-47-8(i). The July 1, 2026 text places the cancellation notice in § 43-47-8(d)(2).

Ask the Board which amount and which form it will accept for an application filed now. Do not guess.

How to get the bond

The Board does not sell the bond. The statute says it is executed with a surety company duly authorized to do business in Georgia, filed with the division director before or immediately upon the granting of the license, and approved by the division director as to form and as to the solvency of the surety.

1. Confirm the penal sum the Board will accept. The statute says $50,000 for a used motor vehicle dealer. The rule and the April 2024 form still say $35,000.
2. Order the bond from a surety authorized to do business in Georgia. This page does not name a surety. The Board's published rule and application do not list one.
3. Use a form the division director will approve. The April 2024 packet includes a bond form. A newer packet controls if the Board has posted one.
4. Put the exact business name from the application on the bond. The packet says the name on the bond must match the application.
5. Sign the bond. Attach the power of attorney. The packet says the bond must be an original, and that you should keep a copy.
6. Buy a separate bond for each licensed location. A supplemental license for another established place of business needs its own bond under § 43-47-8(d) and the April 2024 instructions.
7. File it with the application. The statute says the bond is filed with the division director before or immediately upon the granting of the license.

What changes the amount you have to arrange

The statute and the rules set the bond amount. They do not set the premium, which is the price the surety charges you to issue the bond. No premium, rate, or credit factor is printed in the statute, in Rule 681-3-.01, or in the April 2024 packet. Do not rely on a premium quoted by anyone other than the surety that will sign your bond.

These are the factors the official sources do state:

• The penal sum. Confirm whether the Board wants the $50,000 statutory amount or the $35,000 amount still printed on the rule and the April 2024 form.
• The number of locations. Each license or supplemental license tied to an established place of business needs its own bond.
• The term. The rule says the bond runs with the licensing period and that you should not be without one. The April 2024 form says the bond expires on September 30 of an even-numbered year.
• A replacement if the bond is canceled. The statute gives ten days after the effective date of cancellation to submit a new bond.

Used parts dealers are a different bond amount in both the statute and the rule: $10,000. This page is about the used motor vehicle dealer bond, not the parts-dealer bond.

Cancellation

O.C.G.A. § 43-47-8(d)(2) says no licensee shall cancel, or cause to be canceled, a bond unless the Board is informed in writing by a certified letter at least 30 days before the proposed cancellation. Paragraph (d)(3) says that if a surety or the licensee cancels the bond and the licensee does not submit a new bond within ten days of the effective date, the Board may revoke the license.

The office and inspection guide covers the place of business the bond is tied to. The pre-licensing seminar guide covers the class that goes in the same application.

Questions people ask

How much is the Georgia used car dealer surety bond?

O.C.G.A. section 43-47-8, effective July 1, 2026, states $50,000 for a used motor vehicle dealer, for each license or supplemental license. Board Rule 681-3-.01 and the Board's April 2024 application still state $35,000. Confirm the amount the Board will accept before you buy a bond.

Does each Georgia dealer location need its own bond?

Yes. The statute requires a bond for each license or supplemental license tied to an established place of business. The April 2024 application says a separate bond is required for each licensed location.

What does a Georgia dealer bond cost?

The statute and the Board rules set the bond amount, which is the sum the bond covers. They do not publish the premium a surety charges. Ask a surety company authorized to do business in Georgia for the premium, and confirm the bond form with the Board.

Can a Georgia dealer cancel the surety bond?

Not without notice. The statute says the licensee must inform the Board by certified letter at least 30 days before a proposed cancellation. If the bond is canceled and a new bond is not submitted within ten days, the Board may revoke the license.

Sources

• O.C.G.A. § 43-47-8, bond amount, who the bond protects, filing, and cancellation, effective July 1, 2026, including the SB 293 history note.
• Rule 681-3-.01, the $35,000 amount still printed in the licensing rule.
• Used Motor Vehicle Dealer application, revised April 2024, including the bond form and the separate-bond instruction.
• Board home page.

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