What Is the Purpose of an Auto Dealer Bond?

[jackkyle]

Hi everyone,

I've been researching requirements for getting a car dealership license and keep seeing the term auto dealer bond pop up. I understand it's a legal requirement in many states, but I'm still not clear on what it actually does.

Can someone explain the purpose of an auto dealer bond? Who does it protect, and how does it work in real-world situations?

Would appreciate any insights from those who've gone through the process or are familiar with dealership regulations.

Thanks in advance!

Jackkyle