Auto dealer bond cost
The Rhode Island Dealers’ License and Regulations Office requires auto dealers to post $50,000 surety bonds prior to conducting business.
These bonds are subject to underwriting, so the price you’ll pay depends on a review of your personal credit report. Bad credit? No problem! We are offers and exclusive bad credit bonding program through which we get 99% of all applicants the bonds they need quickly, easily and accurately.
Why this bond
Rhode Island car dealer bonds ensure that principals (auto dealers) comply with the provisions of Chapter 1499 Public Laws of 1956. Prohibited acts under this bond include:
- failing to have an established place of business for sales
- willfully defrauding any retail buyer
- employing fraudulent devices, methods or practices
- using unfair methods of competition
- knowingly advertising any statement of fact which is untrue, misleading or deceptive
- not displaying the appropriate license at the designated principal place of business at all times
- and more
These bonds are put in place to protect the state and consumers from financial loss that occurs if the principal conducts unlawful or unethical business. The bond covers damages up to the full bond amount, and the principal must reimburse the surety up to the full bond amount.
Auto dealer bond details
Motor vehicle dealer bonds in Rhode Island remain in full force and effect until canceled or violated. These bonds expire on December 31, so your bond premium could be prorated depending on when you buy it. Our team of surety experts works hard to get you bonded according to your specific needs.
The surety can cancel this bond by giving written notice of cancellation to the principal and the Rhode Island Dealers’ License and Regulations Office at least 60 days prior to the effective termination date.
A notary’s signature must be present on the bond form.
Become an auto dealer
It is illegal for a person to act as an auto dealer in Rhode Island without being legally licensed to do so. To obtain a license, the applicant must complete the following steps in the licensing process:
- have the Rhode Island Dealers’ License and Hearing Board approve the name of the dealership
- submit a completed and notarized application form
- post a surety bond in the amount of $50,000
- submit a Bureau of Criminal Identification Authorization Form for each individual owner, partner or corporate officer
- furnish the dealership’s lease agreement (including square feet dimensions)
- supply a copy of the city/town license, if applicable
- provide zoning approval for the city/town
- provide 4 pictures of the business establishment
- pay all required application and licensing fees
- and more
Our team of experts is dedicated to getting you bonded quickly and for the lowest rate available, regardless of you credit situation.
Apply for your surety bond
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