Whats the point of a Surety Bond (auto dealer)

I believe it is meant to protect the public from fly-by-night operators.
I doubt it is effective in doing so.

I’m pretty sure a $25,000 bond doesn’t cost $25,000. You pay premiums, just like an insurance policy, and if there is ever a claim against it, the claim is capped at $25,000.

I would caution you not to get into any business unless you have enough money to run it for the year or two it will take to reach profitability.

I question your sincerity (first that, and then your aptitude / ability second) in wanting to get into this business if you

1. Can’t understand why you might be required to have this (are you sure that you understand the point of a surety bond?), and

2. Haven’t even bothered to look at any of the multitude of websites that offer surety bonds to see what it might cost… from people who offer them day in and day out.

@YARNLADY is correct; a surety bond is a form of insurance, and just like other forms of insurance you pay a premium that is not equivalent to the insured amount. How much it is depends on you, the business, the surety required, the obligee, etc.—as I just discovered by looking at Google, and as you could have (should have) done, too.