What Is an Alabama Motor Vehicle Dealer Bond?
The Alabama Motor Vehicle Dealer Bond is a $50,000 surety bond required by the Alabama Department of Revenue for licensed New, Used, Rebuilder, Wholesaler, and Master motor vehicle dealers. It guarantees dealers comply with Alabama motor vehicle law and protects consumers from financial losses caused by a dealer’s failure to honor the terms of a vehicle sale or exchange. This bond is also known as an Alabama Auto Dealer Bond, Alabama Dealer Bond, or ALDOR Surety Bond.
Who Needs the Bond?
All licensed and applicant New, Used, Rebuilder, Wholesaler, and Master motor vehicle dealers in Alabama must obtain this $50,000 surety bond and maintain it for the full license term.
Why Is the Bond Required?
This bond protects consumers and the State of Alabama by ensuring dealers operate honestly, honor the terms of every vehicle sale, and follow all applicable laws and regulations.
How Much Does the Bond Cost?
Rates start as low as $500 for a one-year term. The exact cost of your Alabama Motor Vehicle Dealer Bond is a small percentage of the $50,000 bond amount and depends on several underwriting factors, including:
- Personal credit history
- Business experience
- Home ownership
- Net worth
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Alabama Motor Vehicle Dealer Bond Renewal Deadline: September 30, 2026
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Read our complete guide to the Alabama Motor Vehicle Dealer Bond.
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