What is a motor vehicle bond needed for?

Motor vehicle bonds protect consumers for financial damage or fraud from unlicensed motor vehicle dealers. When filing the motor vehicle bond you must declare, under penalty of perjury, that if they are found guilty then their bond will satisfy up to the dollar limit on the bond amount for those damaged by illegal actions by the auto dealer during their auto sale or repair work transaction.

They serve important consumer protection role as an assurance customers can take legal action should a company take illegal or immoral advantage.