Motor Vehicle Dealers - Used Vehicles Only

The Lessor-Retailer Surety Bond for Used Vehicles Only is a regulatory requirement for businesses in California that operate as lessor-retailers, specifically those who lease used vehicles to consumers. This bond ensures compliance with state regulations governing vehicle leasing operations.

Who Needs This Bond: California lessor-retailers who engage in leasing used vehicles must obtain this bond as part of their licensing requirements. This is distinct from traditional used vehicle dealers and applies specifically to businesses that lease rather than sell used vehicles to consumers.

Protection Provided: The bond protects the State of California and consumers from financial losses resulting from the lessor-retailer's failure to comply with applicable laws and regulations. This includes violations of leasing agreements, improper handling of consumer funds, or other regulatory breaches in the used vehicle leasing business.

Bond Details: The bond requires a $50,000 coverage amount and has a one-year term. It is renewable annually to maintain continuous compliance with state requirements. Lessor-retailers must keep this bond active throughout their business operations to remain in good standing with California regulatory authorities.