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Oregon vehicle dealers will see their required surety bond coverage amount increase with the passage of SB 974, which takes effect on January 1, 2018. Keep reading to learn more about the changes.
Oregon vehicle dealers are licensed to sell either motor vehicles or motorcycles, mopeds, snowmobiles, and/or ATVs. Under current law, motor vehicle dealers need to purchase a $40,000 surety bond, and motorcycle, moped, snowmobile, and/or ATV dealers need a $2,000 surety bond before licensure. Claimants on motor vehicle dealers’ surety bonds can receive no more than a $20,000 payout.
SB 974 changes these amounts for Oregon vehicle dealers. Motor vehicle dealers will need a $50,000 surety bond when seeking licensure, and�motorcycle, moped, snowmobile, and/or ATV dealers will need a $10,000 bond. The maximum payout on motor vehicle dealers’ surety bond decreases with the new law, from $20,000 to $10,000.
Oregon vehicle dealers submit their applications and receive licenses through the Driver and Motor Vehicle Services division of the Department of Transportation. Vehicle dealers must submit the following information to the DMV to become licensed:
- Completed application with copies photo IDs for every partner, owner, LLC member, or corporate officer
- Plate billing list (if a renewal applicant)
- Signed surety bond
- Liability insurance certificate
- Education certificate (from DMV-approved provider) or Certificate of Exemption
- $1,187 certification fee plus $350 per additional location and $54 per plate (one included in original certification fee)
SB 974 also ends the issuance of new certifications to become dealers of exclusively motorcycles, mopeds, snowmobiles, and/or ATVs after the law’s effective date. Individuals already licensed as such can continue to operate as licensed, but will need to apply for a vehicle dealer certification when their license expires. Per the new law, no one but a retail customer may make any claims on a dealer of recreational vehicles’ surety bond.
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