Auto dealerbond also known as MVD bond, motor vehicle dealer bond, used car dealer bond is required by the State to obtain a dealership license. Auto dealer bonddoes not protect the used car dealer from lawsuits, but it protects the consumer from fraud or misrepresentation by the car dealer. Auto Dealer Bond guaranteecompliance withstate laws, each state sets its own bond amount and expiration date. Motor Vehicle Department charges a license and application fee issue a dealer license. You need to get a dealer bond in the amount set by the State where you will be conducting business.