As the Land of Presidents, Illinois is the birthplace or home of eight presidents, which include Abraham Lincoln, Ulysses S. Grant, Ronald Reagan and Barack Obama. With a population density of 230.68 per square mile, the Prairie State is a fairly sparse state. Outside the city of Chicago, cars are required to get around. Therefore, selling cars in Illinois can be a profitable business. According to the Illinois Secretary of State, anyone in the business of selling or dealing more than five cars need to acquire a motor vehicle dealer license. If you want to become a licensed designated agent to sell motor vehicles in Illinois, you would need to obtain a $50,000 designated agent bond for Illinois vehicle dealers.
The Illinois Vehicle Code Article 1 Dealer requires that any licensed dealers who sell new motor vehicles, used vehicles, motorcycles, or trailers must maintain a motor vehicle dealer bond. In addition, for every additional dealership location, an additional $50,000 motor vehicle dealer bond needs to be posted.
The Illinois auto dealer bond always expires on December 31 of a particular year. The bond term follows the license term to ensure that the bond and the license expire on exactly the same day.
The Illinois Secretary of State, Vehicle Services Department established the Designated Agent Bond for Illinois Vehicle Dealers to protect the public who are harmed by any bonded auto dealers who don’t follow the terms listed out in the Illinois Vehicle Code. Specifically, by purchasing the bond, you agree to collect any title, registration fees and taxes and remit them to the Illinois Secretary of State.
You may have been told that you need a raised seal from the surety company for your bond in the past. However, recently, the Illinois Secretary of State has been much more flexible and they are now accepting digital seals and signatures.
The authority responsible for the illinois motor vehicle dealer license application and renewal is the Dealer/Remitter Licensing Section. Their contact information is below
Illinois Secretary of State
Dealer/Remitter Licensing Section
501 S. Second St. Rm. 069 Springfield, IL 62756-7000
217-782-7817
The authority responsible for the illinois motor vehicle dealer license application and renewal is the Dealer/Remitter Licensing Section. Their contact information is below
Illinois Secretary of State
Dealer/Remitter Licensing Section
501 S. Second St. Rm. 069 Springfield, IL 62756-7000
217-782-7817
After you purchased the bond, you would need to mail the original bond to the following address:
Illinois Secretary of State,
Dealer Licensing Section 501
S. Second St. Rm. 069
Springfield, IL 62756-7000
Given that the bond is mailed, we highly recommend you check to make sure the following on your bond:
Step 1: Set up your corporation in your desired corporate structure
Step 2: Register your business from the Illinois Department of Revenue
Step 3: Set up your dealer lot
Step 4: Purchase your liability insurance
Step 5: Complete a dealer training course
Step 6: Conduct a background check through the illinois state police
Step 7: Get an illinois auto dealer surety bond
Step 8: Submit your application and pay fees
Step 9: Pass the in-person inspection
