Motor vehicle dealer bond cost
Tennessee motor vehicle dealer surety bonds are required by the Tennessee Motor Vehicle Commission and must be in the amount of $50,000.The cost of this particular bond depends directly on your credit report and is subject to underwriting. Even if your credit score is less-than-stellar, our experts can get you the bond you need quickly and easily. we have history of helping clients with low credit get bonded, and we’ll work hard to get you approved for the lowest rate possible.
New auto dealers must post bonds that remain valid for a 25-month term. Existing dealers must post bonds that remain valid for a 24-month term. Because of this, all bond premium rates are doubled to accommodate the multi-year policy.Give us a call at 888.610.4474 or submit a bond request to get a quote on a Tennessee motor vehicle dealer bond.
Why this bond
Tennessee motor vehicle bonds ensure that auto dealers adhere to every rule and regulation defined in Tennessee Code Annotated 55-17-111. Specifically, these bonds protect any person who suffers loss because the dealer fails to pay a retail customer’s prepaid title, registration or other related fees or taxes. The bond also protects harmed parties if the dealer fails to deliver a valid vehicle certificate of title free and clear of any prior owner’s interests and all liens except a lien created by or expressly assumed in writing by the buyer of the vehicle with each vehicle sale.
Motor vehicle bond details
Tennessee motor vehicle dealer bonds remain valid for 2 years, must start on the first day of the month and expire on the same date as the principal’s business license. If the surety cancels the bond, at least 60 days’ notice must be given to the state.New dealers must post 25-month surety bonds, while existing dealers must post 24-month bonds.
Become a motor vehicle dealer
Applicants for a motor vehicle dealer license must have an established place of business. The facility must be separate from all other buildings and have furniture and a working telephone. The facility must have a vehicle display area large enough to fit 15 vehicles, meet the sign requirements (per ordinance) and have enough space for at least 3 customer parking spots.
The following documents must be included in a dealer’s application packet:
- certificate of liability insurance
- garage sale liability
business tax license
- sales tax identification number
- personal and/or financial check and disclosure
- financial statement prepared by a CPA
- zoning compliance
- franchise agreement letter from the manufacturer
- surety bond or letter of credit (original)
Apply for your surety bond
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