New and Used Motor Vehicle Dealer Bonds - Who Needs Them, Why Are They Required, How Much Do They Cost and Where Do I Start?!
Auto Dealer bonds- If you’re in the vehicle sales industry, you know that a bond is required in order to obtain or maintain an active dealer license. Sometimes obtaining a bond can be costly or challenging. However, bonds should never be difficult or frustrating to obtain. Here at Bonding Solutions we can help you obtain an auto dealer bond quickly, and at the industry’s lowest rates. Most dealer bonds can be issued and sent to you the same day you apply. We currently work with a number of different Surety Companies with exclusive programs that allow us to offer you a bond the lowest possible price. We can and will meet or beat any quote.
Credit problems? Not a problem for us! Our programs allow us to write your bond at the lowest rates, regardless of credit score or history. Starting a new business? Let us help you save on start up costs. Let us make the bond process easy for you. Fill out our sixty second application and save today.
What is a dealer bond and why do I need one?
Auto Dealer bonds go by many different names, such as car dealer bonds, automobile dealer bonds, DMV bonds, MVD bonds, used or new car dealer bonds, motor vehicle dealer bonds and trailer dealer bonds, among others. This bond is used to protect your customers from fraud and other negative actions by dealerships and their employees. States require these bonds, but each state has varying requirements. (See our state list below)
How much is a dealer bond and which type do I need?
Auto dealer bonds are issued in different amounts and for different lengths of time. Both are based on the requirements set forth by the state in which you are applying to do business as an auto dealer. The premiums can vary from rates as low as 0.5% of the bond amount (i.e. $500 if you are required to hold a $100,000 bond) and as high as 10%. This is based on years experience, financials, credit and other criteria. Less than perfect credit? Don’t let the thought of a high premium scare you away, we have exclusive programs that allow us to write bonds specifically for people with credit issues and in some cases financing is available.
How do I apply for a dealer license and a bond?
Simply click on your state in the listing below to find the details of each type of dealer bond and how to apply. Or simply Apply Here and we will help you determine the requirements and what type of bond you need.
What is a bond claim, and how does my bond protect me as a dealer?
Bond claims should be rare, but they can happen. A person may make a claim on your bond for a number of reasons. For example, if you or your dealership fails to honestly represent the merchandise, or they feel you are being unethical in your marketing and sales practices, they may place a claim on your bond. Failure to provide a valid title certificate can also result in a bond claim. Likewise, it can occur if you are not paying your state sales tax payments or require fees as set forth by the Department of Motor Vehicles. The sole purpose of your bond is to protect your clients, which is no doubt part of your business practices already. We want to help your business grow by showing your clients they are working with a friendly and reputable dealer who wants to give them the best experience possible.
There are several sub-categories of Auto Dealer Bonds:
Our ultimate goal is to provide our customers with an easy, fast, and professional experience, thus ensuring their statisfaction. Our performance is guaranteed!