Idaho dealer bond
The Idaho Dealer Bond: $20,000, $40,000 or $10,000
An Idaho dealer must file a surety bond with ITD before the license is issued: $20,000 for most dealers, $40,000 for a wholesale dealer, and $10,000 for a dealer that sells only motorcycles, ATVs, UTVs, truck campers and snow machines. The bond is not insurance for you — it protects the people you deal with and the state.
The short answer
A retail used-car dealer in Idaho files a $20,000 surety bond; a wholesale dealer files $40,000. The bond goes into your ITD 3170 dealer application packet, and it has to show the exact owners, business names and dealership location listed on the application.
How much is the bond?
The figure on the bond is the coverage, the most the bond can be made to pay. It is set by the kind of license you hold.
| Dealer type | Bond amount |
|---|---|
| All other dealers, including retail used-car dealers | $20,000 |
| Wholesale dealer of used vehicles of all types | $40,000 |
| Dealer only in motorcycles, motor-driven cycles, motorbikes, ATVs, UTVs, truck campers and snow machines | $10,000 |
The bond amount is not what you pay for it. A surety charges a premium for writing the bond, and that premium is between you and the surety. ITD does not set it.
What the bond protects
The bond is conditioned on the dealer not practicing fraud, not making fraudulent representations, and not violating the dealer licensing chapter, ITD's rules, the consumer protection chapter, federal motor vehicle safety standards, or the odometer laws.
Three ways to post it
Idaho law allows three forms:
- A corporate surety bond, written by a surety licensed to do business in Idaho.
- A certificate of deposit, in a form the director prescribes.
- A cash deposit with the director.
ITD's dealer page adds that a certificate of deposit or cash stays on deposit until five years after the dealership has gone out of business.
The detail that sends bonds back
ITD's instruction: the bond must show the exact ownership, business names and dealership location listed on the application for dealer license. Form ITD 3170 repeats it in its checklist, which asks for the original signed dealer bond including all owners' names, the corporation or dealership name if different, and the address of the dealership location.
If the bond lapses
When ITD gets notice that a bond was canceled or became invalid, it immediately suspends the dealer license and takes possession of the license, all vehicle plates used in the business, and all unused title applications. The dealer is entitled to a hearing within twenty days of the suspension, and the license is reinstated once ITD gets notice that a valid bond is in force.
The bond and the ICAR fund
Retail dealers also pay $300 into the Idaho Consumer Asset Recovery Fund, known as ICAR, with the initial application and at each renewal; wholesale-only dealers are exempt. ICAR claims are open to Idaho residents only. ITD's page explains that a dealer who has operated for at least three consecutive years without lapses or claims against the bond, and without judgments paid through ICAR, has the option to operate without a bond.
Common questions
How much is the Idaho dealer bond for a used-car lot?
$20,000. That is the amount for all dealers other than wholesale dealers and motorcycle, ATV, UTV, truck camper and snow machine dealers.
Why is the wholesale bond higher?
The law sets $40,000 for a wholesale dealer of used vehicles of all types, and the same rule exempts those dealers from paying into ICAR.
Can I post cash instead of buying a bond?
Yes. Idaho law allows a certificate of deposit or a cash deposit with the director. ITD says it stays on deposit until five years after the dealership has gone out of business.
What happens if my bond is canceled?
ITD immediately suspends the license and takes the license, the plates used in the business and the unused title applications. You are entitled to a hearing within twenty days, and the license comes back when a valid bond is in force.
Does the bond have to match my application?
Yes. ITD requires the bond to reflect the exact ownership, business names and dealership location on the ITD 3170. Check every character before the surety signs.
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