Who requires it
Wisconsin Department of Transportation — Dealer & Agent Section
License & permit · Wisconsin
Wisconsin Motor Vehicle Dealer Bond
Wisconsin motor vehicle dealers must maintain a bond or irrevocable letter of credit under Wis. Stat. § 218.0114(5). Retail dealers generally post at least $50,000; dealers that sell or propose to sell motorcycles and not other types of motor vehicles post at least $5,000. Wholesalers and wholesale dealers post at least $25,000. Security is executed in the name of the Department of Transportation for the benefit of persons who sustain loss because of dealer acts that constitute grounds for license suspension or revocation. WisDOT’s retail application materials specify Form MV2511 for the dealer bond or Form MV1046 for a letter of credit.
Common bond amount
$50,000 retail; $5,000 motorcycle-only; $25,000 wholesale
Statutory minima under Wis. Stat. § 218.0114(5); WisDOT may require supplemental security separately.
How you file
File Form MV2511 with WisDOT, or Form MV1046 irrevocable letter of credit
Renewal
Keep continuous while licensed; coordinate with dealer license renewals
Who requires it
Applicants and licensees for Wisconsin motor vehicle dealer or wholesale dealer credentials through the Department of Transportation Dealer & Agent Section. Selling even one vehicle acquired with intent to resell can trigger dealer licensing. Confirm your retail versus wholesale classification with WisDOT before sizing the amount.
How much is required
Wis. Stat. § 218.0114(5)(a) establishes a minimum $50,000 bond or irrevocable letter of credit for motor vehicle dealers, reduced to a $5,000 minimum when the dealer sells or proposes to sell motorcycles and not other types of motor vehicles. Subsection (5)(c) sets a separate $25,000 minimum for wholesalers and wholesale dealers. WisDOT may also require supplemental security in other cases under the chapter—those case-by-case amounts are outside the standard application faces published here.
How to get and file it
Have a Wisconsin-authorized surety execute WisDOT Form MV2511 for the correct face, or arrange an irrevocable letter of credit on Form MV1046. If your business will be listed as the lessor on titles of vehicles sold, WisDOT also requires Lessor Bond Form MV2509 in addition to the dealer bond. Submit the security with the dealer licensing package as the Dealer & Agent Section directs. Maintain the bond or letter of credit in force while licensed. Align the name on the bond with the dealer license. Coordinate renewals and amendments with WisDOT’s dealer license cycle and keep contact information current so cancellation notices reach the right account.
Cost note
The figures above are required bond (or letter-of-credit) amounts, not premiums. See bond amount vs premium. Bond amount vs premium →
Requirement checklist
- Retail dealer face
- At least $50,000 bond or irrevocable letter of credit
- Motorcycle-only face
- At least $5,000 when selling motorcycles and not other motor vehicles
- Wholesale face
- At least $25,000 for wholesaler / wholesale dealer licenses
- Forms
- MV2511 (bond) or MV1046 (letter of credit); MV2509 if also a lessor
- Who requires it
- Executed in the name of the Department of Transportation
Official sources
Related resources
Frequently asked questions
Can I use a letter of credit instead of a dealer bond?
Yes. Wis. Stat. § 218.0114(5) allows a bond or an irrevocable letter of credit. WisDOT retail materials identify Form MV1046 for the letter-of-credit path.
Is the lessor bond the same as the dealer bond?
No. If your business will be listed as the lessor on the title of any vehicle sold, WisDOT requires Lessor Bond Form MV2509 in addition to the dealer bond or letter of credit.
Related Wisconsin bond guides
Sales Finance Company Bond
$25,000 minimum
A sales finance company or applicant for a Wisconsin sales finance company license must provide and maintain a bond or irrevocable letter of credit of not less than $25,000 under Wis. Stat. § 218.0114(5)(b). The security must be in a form acceptable to the Division of Banking, issued by a surety licensed to do business in Wisconsin, and payable to the state of Wisconsin for the use of the state and of any person who sustains a loss because of an act that constitutes grounds for suspension or revocation under chapter 218. DFI manages these licenses and electronic surety bonds through NMLS.
Manufactured Home Dealer Bond
$25,000–$100,000 by class and annual sales
Wisconsin manufactured home dealers licensed under Wis. Stat. § 101.951 must show financial responsibility to the Department of Safety and Professional Services. SPS 305.323 lets an applicant file either a surety bond on Form SBD-10679 or a financial statement on Form SBD-10678 that demonstrates the scheduled net worth. The surety is therefore optional—an alternative to the net-worth statement—not a bond every dealer must buy. Amounts come from Table 305.323-1 for non-brokers ($50,000 for new dealers and for two to fifty homes sold per year; $100,000 for fifty-one or more) and Table 305.323-2 for brokers and broker-restricted dealers ($25,000 for new dealers and for two to fifty homes; $50,000 for fifty-one or more). The bond, when used, is payable for the benefit of persons who sustain loss from licensee acts that constitute grounds for suspension or revocation under § 101.951(6).
Surety basics (not repeated here)
Universal surety concepts explained once—linked here instead of repeated on every state or bond page.
Continue with a Wisconsin application
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Last verified 2026-08-10. This guide is based on verified educational content and official sources.
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