A Guide to Auto Dealer Bonding
Individuals looking to get their motor vehicle dealer license typically have to provide a surety bond to guarantee their dealership will comply with industry regulations. This type of license and permit bond is known by a number of different names: automobile bond, car dealer bond, dealer bond, DMV bond, motor vehicle dealer bond, used car dealer bond, etc. No matter the exact name, this bond type is used to protect consumers from fraud and other wrongful actions committed by dealerships and their employees.
State Specific Costs
Auto dealer bond costs and requirements vary greatly as the bond amounts and regulations surrounding each license are established on a state level.
Pay a Low Rate for Your Auto Dealer Bond
Qualified applicants could pay just 1% of the total bond amount when purchasing an auto dealer surety bond. Your exact premium will depend on a number of factors, such as:
- the bond amount
- the bond’s duration
- your financial credentials
Our specialists are brokers, which means we’ll shop your bond with multiple underwriters to find you the lowest rate available.
Get an Auto Dealer Surety Bond With Bad Credit
Don’t worry if you have bad credit. We can help you! Our surety experts believe that every applicant should get the bond they need regardless of credit history. That’s why we established an exclusive Bad Credit Bonding Program. We have access to underwriters who specialize in writing bonds for applicants with less-than-stellar credit scores. Qualified applicants can even choose our premium financing plan to break up their premiums into smaller, more manageable payments. Don’t let your bad credit keep you from getting the bond you need.
Apply Now, Quickly & Easily!
Whether you’re establishing a new car dealership or are looking for a new surety bond company, look no further. After reviewing your application, one of our surety specialists will discuss your options for purchasing an auto dealer bond. We’ll help you get bonded quickly, easily and accurately – for the lowest rate available.
Learn More About Auto Dealer Surety Bonds
Harmed parties might make a claim on your bond to access financial reparation if you or your dealership:
- misrepresent merchandise
- use unethical business practices to sell vehicles
- fail to deliver a valid certificate of title
- do not pay necessary motor vehicle fees
- do not forward sales tax payments to the state
The exact protection an auto dealer bond provides depends on the state and/or local laws that require it. Every state but Ohio and Vermont requires its auto dealers to purchase a surety bond before they can be legally licensed to sell vehicles.
Apply for your surety bond
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