Wyoming Auto Dealer Bond

A Wyoming auto dealer bond, formally called a Vehicle Dealer Bond, is a $25,000 surety bond required by the Wyoming Department of Transportation before your vehicle dealer license can be issued or renewed.

It is a financial guarantee that your dealership will operate in compliance with Wyoming law, avoid fraud or fraudulent misrepresentation, and follow the rules tied to dealer licenses, plates, and temporary permit seals.

Unlike insurance, which protects you, a surety bond primarily protects your customers and the state. If a valid claim is paid out, you are responsible for reimbursing the surety company.

Every surety is a contract between 3 parties:

• The Obligee: Wyoming Department of Transportation
  The state authority that requires the bond as a condition of licensing. They set the bond amount and terms.
   
• The Principal: You, the dealer
  You purchase the bond and are bound by its terms. If a valid claim is paid, you must reimburse the surety.
   
• The Surety: such as Lance Surety Bonds
  We underwrite the bond and guarantee payment to claimants up to the bond amount if you default on your obligations.

1. Submit Your Bond Application

You can apply for your bond online. Just enter some basic information about yourself and your business, and you should be able to submit your application within a matter of minutes. If you have any questions, we are more than happy to assist you.

2. Get a Quote

At Lance Surety Bonds, we want to provide you with the best premium rate possible. For most applicants with a strong credit history, a quote is ready within minutes. More complex applications may take up to 24 hours.

3. Purchase Your Bond

Once you receive your quote, you can pay the bond premium and you’re officially bonded in Wyoming. You’ll receive an email copy of the bond, and you can request a paper copy if necessary.

4. File your bond with WYDOT Motor Vehicle Services

Submit your bond as part of your dealer license application to the Wyoming Department of Transportation Motor Vehicle Services. New applicants should wait until WYDOT approves the license application before having the bond executed.

Filing address:

Wyoming Department of Transportation
 Motor Vehicle Services
 5300 Bishop Boulevard
 Cheyenne, WY 82009-3340

The Wyoming Department of Transportation requires the following applicants to post a $25,000 surety bond before receiving or renewing a license.
 

• Vehicle dealers - Any person engaged in selling or exchanging three or more vehicles in Wyoming in any consecutive 12-month period must obtain a Wyoming Vehicle Dealer License and file the required bond.
• New vehicle dealers - Dealers selling new vehicles, or both new and used vehicles, must be licensed and bonded. New vehicle dealers must also include franchise papers or dealer sales and service agreements for the new vehicles they plan to sell.
• Used vehicle dealers - Dealers who sell or exchange used vehicles must be licensed and bonded, whether they sell fewer than 12 vehicles or 12 or more vehicles in the prior 12-month period.
• Wyoming-based manufacturers - Wyoming-based manufacturers are required to file the same $25,000 surety bond with the license application.
• Renewing dealers and manufacturers - The bond must be included with renewal applications, and the license dates correspond with the effective and expiration dates of the bond.

The bond protects the state and the public from financial loss caused by dealer fraud, fraudulent misrepresentation, or violations of laws and rules tied to the vehicle dealer business. 

A claim can be filed for any of the following violations:
 

• Practicing fraud or fraudulent misrepresentation
• Violating any federal or state law, rule, or regulation related to the conduct of the dealership
• Failing to return a dealer license, full-use license plates, demo plates, or temporary permit seals when required
• Misrepresenting a vehicle's condition, title status, accident history, or mileage
• Retaining customer deposits without delivering the vehicle or otherwise failing to complete a lawful transaction

The maximum payout per bond is the bond's penal sum: $25,000. After any payout, you as the principal are liable to reimburse the surety.

How the Claims Process Works?

• Consumer, claimant, or state authority contacts the surety company directly to file a claim
• The surety investigates the claim to determine its validity
• If the claim is valid, the surety pays the claimant up to the bond's penal sum ($25,000)
• The dealer (principal) is then required to reimburse the surety for any amounts paid out
• Claims on your record will significantly increase your bond premium at renewal

Wyoming vehicle dealer licenses are valid for one year. The effective and expiration dates of the license correspond to the effective and expiration dates of the bond.

Lance Surety will contact you well in advance of your renewal date to help prevent any lapse in coverage. Your renewal bond should be filed before the prior license and bond expire.

Wyoming dealer bonds are issued for a one-year obligation. Continuation certificates are not acceptable, and cancellation of the bond is not accepted unless a newly executed bond is in place for the same time period as the original bond.

At renewal, the surety company will review your credit. Maintaining a strong credit profile can help keep your premium costs low.

Getting a Wyoming auto dealer license is handled by WYDOT Motor Vehicle Services. The state requires dealers to submit the MV-422 Vehicle Dealer and Manufacturer Application, a Wyoming Sales and Use Tax License, the applicable license fee, business/location documents, background check materials, and the $25,000 bond after approval. 

You can find the full requirements on WYDOT’s Vehicle Dealerships page.

You can also access the official Vehicle Dealer and Manufacturer License Application and the $25,000 Vehicle Dealer Bond form from WYDOT.

For more information on how to get the license, check our guide: Wyoming auto dealer licens

How long does it take to get a Wyoming dealer bond?

For most applicants, bonds are issued the same day — often within minutes of completing the application. Your bond is delivered digitally by email. New Wyoming applicants should not have the bond executed until WYDOT has notified them that the dealer license application has been approved.

What is the difference between the bond amount and the bond premium?

The bond amount (also called the penal sum) is the maximum protection offered under the bond — $25,000 for Wyoming vehicle dealers. This is not what you pay. The bond premium is the annual cost you pay to purchase the bond, which is a percentage of the bond amount. For Wyoming, that usually means $250–$2,500 per year depending on credit and underwriting factors.

What happens if my bond lapses?

If your bond lapses, you are no longer in compliance with Wyoming dealer licensing requirements and cannot legally operate as a licensed dealer. WYDOT states that the license expiration date corresponds with the bond expiration date, so renew your bond and license before the current term ends.

Can my bond be cancelled?

Wyoming dealer bonds are written for a one-year obligation. The official bond form states that cancellation will not be accepted unless a newly executed bond is in place for the same time period as the original bond. Continuation certificates are not acceptable.

Do I need a bond for every salesperson I employ?

No separate Wyoming salesperson bond is listed in the WYDOT vehicle dealer application materials. The required bond is the $25,000 Vehicle Dealer Bond filed by the licensed dealership or Wyoming-based manufacturer.

Do I need a separate bond for each dealership location?

The bond must match the licensed business information and dealership location listed on the WYDOT bond form and application. If you operate more than one licensed dealership location or add a supplemental lot, confirm the filing requirements with WYDOT before submitting your bond.